Domestic indices trade lower in late morning deals

Domestic equity indices were trading lower in late morning deals tracking declines in other Asian markets. Selling in Tech Mahindra, Axis Bank, Ultratech Cement, Mahindra & Mahindra and Larsen & Toubro companies’ stocks dragged the markets to trade below natural lines. Traders were cautious after 10-year Treasury yield in U.S. climbed to 4.57% one day after Fed signaled slower rate cutting cycle. Traders took note of report that US Ambassador to India Eric Garcetti said India and the United States (US) should work together to lower tariffs to increase trade and make it fair and equal. Garcetti also called India the highest tariff major economy in the world. On the BSE sectoral front, traders were seen pilling up positions in Oil & Gas, Energy, Metal, Utilities and Healthcare, while selling was witnessed in IT, Realty, Bankex Capital Goods and TECK. 

On the global front, Asian markets traded mostly in red as investors assessed Japan’s inflation numbers. Japan released its November inflation numbers, a day after the Bank of Japan held rates at 0.25%. The core inflation rate in the country - which strips out prices of fresh food - came in at 2.7%, slightly higher than the 2.6% expected from street.  Headline inflation came in at 2.9%, higher than the 2.3% seen in October. Back home, in the stock specific development, Uno Minda surged after the National Company Law Tribunal (NCLT) approved the merger of Kosei Minda Aluminum Company, Kosei Minda Mould, and Minda Kosei Aluminum Wheel with Uno Minda.

The BSE Sensex is currently trading at 79060.92, down by 157.13 points or 0.20% after trading in a range of 78673.68 and 79587.15. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.26%, while Small cap index down by 0.03%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.98%, Energy up by 0.72%, Metal up by 0.35%, Utilities up by 0.29% and Healthcare up by 0.28%, while IT down by 0.64%, Realty down by 0.59%, Bankex down by 0.45%, Capital Goods down by 0.45% and TECK down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 1.04%, JSW Steel up by 0.87%, Asian Paints up by 0.79%, Bajaj Finserv up by 0.62% and Maruti Suzuki up by 0.50%. On the flip side, Tech Mahindra down by 1.58%, Axis Bank down by 1.57%, Ultratech Cement down by 1.43%, Mahindra & Mahindra down by 1.08% and Larsen & Toubro down by 0.95% were the top losers.

Meanwhile, Union Minister of Commerce & Industry, Piyush Goyal has said that India’s footwear and leather industry is not only a significant contributor to the economy but also a symbol of skilled craftsmanship and innovation. 

Goyal lauded the exporters for their contributions and urged the industry leaders to work together to achieve even greater milestones. He praised the leather industry for adopting high quality standards and for their commitment to make Brand India represent the quality the country stands for. He said that the industry must become more quality conscious to achieve greater global competitiveness. 

The minister urged the industry to scale their production keeping an element of sustainability in it as well. He said leather industry must achieve zero pollution in its production with proper treatment plants. With economies of scale India’s competitiveness can be better than the rest of the world. Demand of India will itself help the industry achieve large economies of scale.    

The CNX Nifty is currently trading at 23920.30, down by 31.40 points or 0.13% after trading in a range of 23807.30 and 24065.80. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.36%, Hindalco up by 1.23%, Apollo Hospital up by 1.11%, BPCL up by 0.90% and Asian Paints up by 0.87%. On the flip side, Axis Bank down by 1.66%, Tech Mahindra down by 1.59%, Ultratech Cement down by 1.55%, Mahindra & Mahindra down by 1.11% and Larsen & Toubro down by 1.05% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 12.06 points or 0.06% to 19,740.45, Straits Times fell 34.91 points or 0.94% to 3,727.97, KOSPI dropped 37.46 points or 1.56% to 2,398.47, Nikkei 225 slipped 68.97 points or 0.18% to 38,744.61 and Taiwan Weighted lost 233.75 points or 1.03% to 22,698.50. However, Jakarta Composite gained 17.92 points or 0.26% to 6,995.16 and Shanghai Composite strengthened 6.51 points or 0.19% to 3,376.54.