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Weak trade persists in Indian markets
Oct-07-2024

Weak trade persisted in Indian equity markets during early afternoon deals with both Sensex and Nifty trading lower, amid escalating tensions in the Middle East. Traders overlooked the Ministry of Labour & Employment’s statement that India has witnessed significant employment growth of nearly 36%, adding around 170 million jobs during 2016-17 and 2022-23. With a robust democracy, dynamic economy, and a culture that celebrates unity in diversity, India’s journey toward becoming a global powerhouse continues to inspire the world. There was anxiety among traders, as Federal Reserve Bank of Chicago President Austan Goolsbee lauded the strong September jobs report but warned of putting too much stock in one month’s data, adding that there are risks that inflation might undershoot the central bank’s 2% target.

On the global front, Asian markets were trading mostly in green, even as Japan's leading index decreased more-than-expected in August to the lowest level in nearly four years. The preliminary data from the Cabinet Office showed that the leading index, which measures future economic activity, dropped to 106.7 in August from 109.3 in the previous month. The expected score was 107.2. Further, this was the lowest reading since October 2020, when it was 106.5.

The BSE Sensex is currently trading at 81280.92, down by 407.53 points or 0.50% after trading in a range of 81139.62 and 82137.77. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 1.83%, while Small cap index was down by 2.87%.

The only  gaining sectoral indices on the BSE were TECK up by 0.27% and IT up by 0.14%, while Utilities down by 3.81%, Power down by 3.43%, PSU down by 3.08%, Oil & Gas down by 2.40% and Industrials down by 2.40% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.47%, ITC up by 1.39%, ICICI Bank up by 0.72%, Infosys up by 0.61% and Bajaj Finance up by 0.46%. On the flip side, NTPC down by 3.96%, Adani Ports & SEZ down by 3.90%, Power Grid down by 3.51%, Titan down by 2.41% and Maruti Suzuki down by 1.62% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that India will witness the steepest rise in living standards of the common man on the back of the government’s initiatives and the efforts towards doubling per capita income in few years. He stressed that inequality in India has declined with the Gini coefficient, a statistical tool to measure inequity, showing improvement in urban as well as rural areas.

Sitharaman expects these improvements to continue as the effects of the last ten years of economic and structural reforms manifest more thoroughly in the data in the coming years as the Covid shock fades from the economy.  She said the upcoming decades will see the steepest rise in living standards for the common man, truly making it a period-defining era for an Indian to live in. She said ‘while it took us 75 years to reach a per capita income of $2,730, as per IMF projections, it will take only five years to add another $2,000’. The upcoming decades will see the steepest rise in living standards for the common man, truly making it a period-defining era for an Indian to live in.

The minister said the Indian government will try to double the per capita income in a matter of a few years for its 1.4 billion strong population (which makes up 18 per cent of the global total) notwithstanding the geopolitical challenges threatening world peace. By 2047, as India crosses the 100-year mark of independence, she said the new Indian era will have core characteristics similar to developed countries. Viksit Bharat will usher prosperity not just to Indians but to the rest of the world by becoming central to a vibrant exchange of ideas, technology, and culture. Talking on the country’s financial system, she said the soundness and resilience of India’s banking sector have been underpinned by a sustained policy focus on asset quality improvements, enhanced provisioning for bad loans, sustained capital adequacy, and a rise in profitability. NPA (non-performing asset) ratios are at a multi-year low, and banks now have efficient debt recovery mechanisms. 

The CNX Nifty is currently trading at 24822.70, down by 191.90 points or 0.77% after trading in a range of 24798.65 and 25143.00. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.32%, Bharti Airtel up by 1.31%, Infosys up by 0.59%, Cipla up by 0.45% and ICICI Bank up by 0.43%. On the flip side, NTPC down by 4.17%, Adani Ports & SEZ down by 4.01%, Power Grid down by 3.57%, Coal India down by 3.32% and Bharat Electronics down by 3.26% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 330.4 points or 1.43% to 23,067.27, Jakarta Composite gained 34.53 points or 0.46% to 7,530.62, Straits Times rose 3.99 points or 0.11% to 3,593.12, KOSPI increased 40.67 points or 1.56% to 2,610.38, Nikkei 225 surged 697.12 points or 1.77% to 39,332.74 and Taiwan Weighted added 399.85 points or 1.76% to 22,702.56.
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