Indian markets touch intraday low points in early noon deals

Extending their losses, Indian equity benchmarks touched their intraday low points in early afternoon deals, ahead of domestic CPI inflation and industrial output figures due out later in the day. Selling at all sectoral counters except IT and TECK weighed on markets, despite positive cues from other Asian markets. Sentiments were downbeat, amid reports that the elevated inflation does not offer the Reserve Bank any space for an interest rate cut in the next policy review in February and the whole of FY26 as well.

The street failed to get any sense of relief with a report by the PHD Chamber of Commerce and Industry (PHDCCI) stating that India's states have demonstrated remarkable economic resilience in the aftermath of the COVID-19 pandemic, with 25 states achieving over 7 per cent growth in their Gross State Domestic Product (GSDP) during FY22 and FY23. Among these, 17 states surpassed an impressive 9 per cent growth rate, with Gujarat, Kerala, Telangana, Rajasthan, West Bengal, Bihar, Karnataka, Uttar Pradesh, Haryana, and Odisha standing out for their robust economic performance during 2021-22 and 2022-23.

On the global front, Asian markets were trading mostly in green, as Singapore's economic growth outlook for this year was upwardly revised on stronger manufacturing and wholesale and retail trade activities. The Survey of Professional Forecasters published by the Monetary Authority of Singapore showed that gross domestic product is projected to grow 3.6 percent this year, which was revised up from 2.6 percent in the previous survey. The respondents forecast economic growth of 2.6 percent in 2025.

The BSE Sensex is currently trading at 81306.38, down by 219.76 points or 0.27% after trading in a range of 81292.56 and 81680.97. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.64%, while Small cap index was down by 1.00%.

The only gaining sectoral indices on the BSE were IT up by 0.89% and TECK up by 0.88%, while PSU down by 0.98%, Capital Goods down by 0.89%, Industrials down by 0.89%, Energy down by 0.89% and Metal down by 0.89% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.63%, Infosys up by 1.29%, Adani Ports & SEZ up by 1.14%, Indusind Bank up by 1.10% and Bharti Airtel up by 0.96%. On the flip side, NTPC down by 2.19%, Hindustan Unilever down by 2.18%, Tata Motors down by 1.53%, Larsen & Toubro down by 1.32% and Maruti Suzuki down by 1.27% were the top losers.

Meanwhile, highlighting growing proximity and rising trade between India and the European Union (EU), Union Minister of Commerce and Industry Piyush Goyal has said that both sides are aiming for a balanced, ambitious, comprehensive and mutually beneficial Free Trade Agreement (FTA). The FTA negotiations, after 9 rounds of intense engagement, need political directions to arrive at a commercially meaningful deal while understanding the sensitivities of each other. 

Goyal further underlined that any sustainability discussions must appreciate the principle of Common But Differentiated Responsibility (CBDR) and implementation of such measures should take into account differing paths of development. He added that the Indian economy is expected to grow at 7-8% annually to become the third largest economy in the world over the next few years.  Thereafter, rapid and exponential growth would help India’s GDP to reach the milestone of $35 trillion by 2047. 

During interaction of Commerce and Industry Minister with Ambassadors of the European Commission Delegation and member States of the European Union, the European side underscored that both sides would gain tremendously by integrating the two economies and building resilience in their supply chains. The interaction also accorded an opportunity to discuss progress in the India-EU Trade and Technology Council. India is the only country, other than the United States, with which the EU has such a mechanism.

The CNX Nifty is currently trading at 24559.50, down by 82.30 points or 0.33% after trading in a range of 24551.65 and 24675.25. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.43%, Adani Enterprises up by 1.40%, Adani Ports & SEZ up by 1.15%, Indusind Bank up by 1.06% and Infosys up by 1.00%. On the flip side, Hindustan Unilever down by 2.13%, NTPC down by 2.13%, Hero MotoCorp down by 1.90%, Tata Consumer Products down by 1.64% and Apollo Hospital down by 1.58% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 310.2 points or 1.54% to 20,465.25, Shanghai Composite strengthened 23.09 points or 0.67% to 3,455.58, Straits Times rose 14.56 points or 0.38% to 3,807.38, KOSPI increased 39.61 points or 1.6% to 2,482.12, Nikkei 225 surged 476.91 points or 1.2% to 39,849.14 and Taiwan Weighted added 143.17 points or 0.62% to 23,046.80, while Jakarta Composite plunged 61.19 points or 0.83% to 7,403.56.