Sensex, Nifty remain sluggish in morning deals

Indian equity benchmarks remained sluggish in morning session, tracking losses in global markets. Traders remained cautious as Foreign Institutional Investors (FIIs) continued to offload Indian equities, selling shares worth Rs 1,316.81 crore on December 18. Traders overlooked India Ratings and Research’s (Ind-Ra) report in which it has projected the Indian economy to grow at 6.6 per cent in 2025-26, up from 6.4 per cent in the current fiscal year. Ind-Ra believes investments will be a key growth driver for the Indian economy in FY26, like in FY22 and FY24. The Indian economy has experienced a cyclical growth slowdown in the past three quarters, which it expects to reverse from the December quarter. On the sectoral front, Garment and textile industry stocks remained in focus as Cotton Association of India (CAI) said India's cotton exports are likely to decline 36.53 per cent in the 2024-25 season, beginning from October 1, to 18 lakh bales due to lower production following shrinking acreage of the crop in the north and Gujarat. It added the total exports during the 2023-24 season stood at 28.36 lakh bales. On the global front, Asian markets are trading lower after the U.S. Federal Reserve delivered a 25-bps rate cut as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation.

The BSE Sensex is currently trading at 79307.75, down by 874.45 points or 1.09% after trading in a range of 79020.08 and 79516.17. All the 30 stocks were declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.86%, while Small cap index was down by 0.91%.

The lone gaining sectoral index on the BSE was Healthcare up by 0.01%, while Metal down by 1.51%, Bankex down by 1.32%, Basic Materials down by 1.28%, PSU down by 1.23% and Industrials down by 1.23% were the top losing indices on BSE.

The top losers on the Sensex were Asian Paints down by 3.01%, Bajaj Finance down by 2.13%, Bajaj Finserv down by 2.13%, Kotak Mahindra Bank down by 1.67% and JSW Steel down by 1.61%, while there was no gainer on the BSE sectoral front. 

Meanwhile, a joint report by the Confederation of Indian Industry (CII) and EY has said that the country’s tourism and hospitality sector is projected to require an additional 61.31 lakh workers to cater to an increasing tourism activities by 2036-37. The CII and EY in a whitepaper titled ‘Employment Landscape in Tourism and Hospitality in India’ provides a forward-looking analysis of employment trends in one of India’s most dynamic sectors and highlights its critical role in driving economic growth and job creation.

It stated by 2036-37, spending in this sector is projected to rise by 1.2 times, driving the need for an additional 61 lakh workers-comprising 46 lakh males and 15 lakh females. This highlights the sector’s pivotal role in gender inclusion and workforce expansion. Tourism and hospitality currently contribute to about 8 per cent of India’s total employment.

Despite setbacks from the COVID-19 pandemic, the sector is witnessing a strong resurgence, fueled by domestic tourism. Further, report stated that India’s tourism industry is a vital engine of economic growth, contributing significantly to employment and GDP of the country. As one of the largest contributors to foreign exchange earnings and employment, the industry’s development is essential for achieving broader economic objectives.

India’s rank on the World Economic Forum’s Travel & Tourism Development Index 2024 has risen to 39th position as compared to 54th position in 2021. Besides, it mentioned in 2023, the sector’s direct contribution to India’s GDP surpassed $231 billion, making India the second-highest tourism GDP contributor in the Asia-Pacific region. To meet this rising demand, report emphasises the need for specialised skills in digital marketing, sustainable tourism, and customer service.

The CNX Nifty is currently trading at 23951.65, down by 247.20 points or 1.02% after trading in a range of 23870.30 and 24004.40. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.47%, Trent up by 0.52%, Tata Consumer Product up by 0.44%, Cipla up by 0.30% and Apollo Hospital up by 0.03%. On the flip side, Asian Paints down by 3.04%, Bajaj Finserv down by 2.15%, Bajaj Finance down by 2.11%, Bharat Electronics down by 1.97% and Kotak Mahindra Bank down by 1.91% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 232.6 points or 0.6% to 38,849.11, Taiwan Weighted lost 344.81 points or 1.49% to 22,823.86, Hang Seng declined 198.43 points or 1.01% to 19,666.12, KOSPI dropped 37.60 points or 1.51% to 2,446.83, Straits Times fell 15.84 points or 0.42% to 3,763.78, Jakarta Composite plunged 115.8 points or 1.63% to 6,992.08 and Shanghai Composite weakened 24.39 points or 0.73% to 3,357.82.