Benchmarks add losses in morning deals

Indian equity benchmarks added losses in morning deals, due to weak global cues and caution ahead of the WPI inflation data to be announced later in the day. Some concern came as the Reserve Bank of India (RBI) data revealed that India’s foreign exchange reserves dropped by $3.235 billion to $654.857 billion, a five-month low, for the week ended December 6. Traders overlooked preliminary readings from a survey showed India's private sector output grew at the fastest pace in four months, helping the economy end 2024 on a positive note underpinned by sturdier demand in services and manufacturing and record jobs growth. Asia's third-largest economy grew a softer 5.4% last quarter, but easing inflation is expected to spur demand among private sector firms, improving the outlook for next year. HSBC's December flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 60.7 this month - matching August's reading - after dropping to 58.6 in November.  

On the global front, Asian markets are trading mostly in red, largely driven by weaker-than-expected retail sales data from China, highlighting ongoing struggles in the world’s second-largest economy. Also, caution crept in ahead of the Federal Reserve's interest-rate decision due this week. Back home, on the sectoral front, Auto stocks remained in focus as industry body SIAM said passenger vehicle dispatches from companies to dealerships rose 4 per cent year on year to 3,47,522 units in November with demand momentum sustaining post festive period in October. The overall passenger vehicle dispatches stood at 3,33,833 units in November last year. 

The BSE Sensex is currently trading at 81868.82, down by 264.30 points or 0.32% after trading in a range of 81747.67 and 82116.44. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Realty up by 2.05%, Consumer Durables up by 0.78%, Industrials up by 0.51%, Capital Goods up by 0.43% and Consumer Discretionary up by 0.30%, while and Metal down by 0.98%, Oil & Gas down by 0.68%, Energy down by 0.48%, TECK down by 0.32% and Auto down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.29%, Bajaj Finance up by 0.49%, ICICI Bank up by 0.20%, SBI up by 0.10% and Reliance Industries up by 0.05%. On the flip side, JSW Steel down by 1.27%, Titan Company down by 1.17%, Bharti Airtel down by 1.07%, Mahindra & Mahindra down by 1.02% and NTPC down by 0.87% were the top losers.

Meanwhile, World Travel and Tourism Council (WTTC) President and CEO Julia Simpson has said that the Indian tourism sector is expected to double in size to $523 billion in the next 10 years from the present size of $256 billion. Simpson stated the travel and tourism sector employs 45 million people in India. She stated in 10 years, the tourism sector in India will be providing jobs to 63 million people.

Further, she said India is one of the most beautiful and amazing countries in the world. She added Tourists and visitors across the centuries have been attracted to its shores and wonderful cities. India continues to welcome the world with open arms and the Indian hospitality is incredible. Besides, she said tourism represents about seven per cent of the Indian economy and in 2019 it was about $211 billion. Now it is about $256 billion. 

Moreover, she said ‘If you look at the impact of tourism in terms of the greenhouse gas emissions on India, it represents about five per cent of all India's greenhouse gas emissions and that's probably about 250 billion kilos of carbon (dioxide) every year. That is actually the biggest greenhouse gas emission in the tourism sector after the US and China’. WTTC works with governments on issues of the travel and tourism industry, and is the global authority on the economic and social contribution of the sector.

The CNX Nifty is currently trading at 24676.25, down by 92.05 points or 0.37% after trading in a range of 24654.25 and 24781.25. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 1.33%, Shriram Finance up by 0.40%, Bajaj Finance up by 0.40%, Dr. Reddy's Lab up by 0.10% and ICICI Bank up by 0.08%. On the flip side, BPCL down by 1.62%, JSW Steel down by 1.16%, Mahindra & Mahindra down by 1.12%, Hero MotoCorp down by 1.11% and Titan Company down by 1.10% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 40.74 points or 0.1% to 39,429.70, Hang Seng declined 135.17 points or 0.68% to 19,836.07, KOSPI dropped 5.85 points or 0.24% to 2,488.61 and Jakarta Composite plunged 65.32 points or 0.9% to 7,259.47.

On the flip side, Taiwan Weighted added 0.57 points or 0% to 23,021.05, Straits Times rose 7.3 points or 0.19% to 3,817.65 and Shanghai Composite strengthened 3.87 points or 0.11% to 3,395.75.