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Markets erase all gains in late morning deals
Oct-07-2024

Domestic equity markets erased all gains and were trading in red in late moaning deals on account of selling by funds and retail investors. Meanwhile, broader indices deeply underperformed their large peers with BSE Mid cap index and Small cap index falling in the rage of 1.20-2.35%. Sentiments got dampened in the markets, as the foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 9,896.95 crore on October 4. Further, traders were cautious ahead of an RBI monetary policy meeting, and the outcome of state elections in Haryana and Jammu and Kashmir on October 8. Traders overlooked report that Vice-President Jagdeep Dhankhar said that the nation presently is in unprecedented economic upsurge and will be a developed nation by 2047. 

On the global front, Asian markets were trading in green, following positive cues from US markets on Friday, as traders reacted to stronger than expected US jobs growth data that eased concerns about the economic outlook. Bank home, on the BSE sectoral front, traders were seen pilling up positions only in TECK and IT, while selling was witnessed in Utilities, Power, PSU, Industrials and Telecom. 

The BSE Sensex is currently trading at 81664.77, down by 23.68 points or 0.03% after trading in a range of 81139.62 and 82137.77. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.22%, while Small cap index down by 2.31%.

The few gaining sectoral indices on the BSE were TECK up by 0.33% and IT up by 0.21%, while Utilities down by 2.57%, Power down by 2.31%, PSU down by 2.19%, Industrials down by 1.83% and Telecom down by 1.75% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.58%, Bajaj Finance up by 1.41%, ICICI Bank up by 1.32%, Kotak Mahindra Bank up by 1.22% and Bharti Airtel up by 1.18%. On the flip side, Adani Ports down by 3.11%, NTPC down by 2.50%, Power Grid down by 1.71%, Titan down by 1.61% and JSW Steel down by 1.24% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that the escalation in the US-China trade war is expected to help India increase its exports and attract investments from American companies. It said that last month, the US Senate introduced two bills that could intensify the trade war and have major global economic impacts if passed.

GTRI stated that the 'Neither Permanent Nor Normal Trade Relations Act' (PNTR Act) and the 'Axing Non-Market Tariff Evasion Act' (ANTE Act) aim to counter China's trade practices by raising tariffs and imposing new trade barriers. The PNTR Act seeks to phase out China's favourable trade status, while the ANTE Act targets non-market economies like China and Russia with tougher measures. While these bills aim to protect US industries, they also create opportunities for countries like India to grow their manufacturing sectors. As US companies look for alternatives to China, India could see increased investment in electronics, textiles, and manufacturing, enhancing its position in global supply chains.

In this background, it said India should reconsider its proposals to invite Chinese firms and investment aimed at boosting exports. The higher tariffs on Chinese products present an opportunity for India to strengthen its manufacturing sector. It also said that both bills create a potential for growth in local industries. As US companies reduce their reliance on China, India's expanding manufacturing sector, especially in electronics, textiles, and other industries, could attract more investment.

The GTRI suggested to the government that India should actively work to attract investment from multinational companies seeking alternatives to China. It will be essential to boost domestic production capabilities, especially in electronics, machinery, textiles, and solar panel manufacturing, to fill the gap left by reduced Chinese imports to the US. India should also reconsider inviting Chinese firms for export-related investments, as US actions against Chinese companies could impact India's own exports if tied to Chinese investments. 

The CNX Nifty is currently trading at 24975.20, down by 39.40 points or 0.16% after trading in a range of 24798.65 and 25143.00. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.67%, Bajaj Finance up by 1.37%, Bharti Airtel up by 1.22%, ICICI Bank up by 1.10% and Cipla up by 1.09%. On the flip side, Adani Ports down by 3.09%, Coal India down by 2.94%, ONGC down by 2.83%, NTPC down by 2.67% and Bharat Electronics down by 2.07% were the top losers.

Asian markets were trading in green; Hang Seng advanced 274.92 points or 1.19% to 23,011.79, Jakarta Composite gained 4.04 points or 0.05% to 7,500.13, Straits Times rose 1.72 points or 0.05% to 3,590.85, KOSPI increased 35.81 points or 1.37% to 2,605.52, Nikkei 225 surged 791.4 points or 2.01% to 39,427.02 and Taiwan Weighted added 399.85 points or 1.76% to 22,702.56. 
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