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Bourses trim losses in late afternoon session
Oct-16-2024

Indian equity markets have come off from day’s low levels in late afternoon session. Currently, markets traded just below their neutral lines. Losses were limited with private report that India’s trade deficit narrowed to a five-month low of $20.8 billion in September from $29.7 billion a month back as merchandise export growth turned positive for the first time in three months. On the global front, Asian markets were trading mostly in red due to lingering Middle East tensions, shifting U.S. rate cut expectations and reports suggesting that the U.S. is mulling a cap on export licenses for AI chips to specific countries. European markets were trading mostly in red as the focus now turns to upcoming earnings from TSMC and Morgan Stanley. 

The BSE Sensex is currently trading at 81786.30, down by 33.82 points or 0.04% after trading in a range of 81358.26 and 81932.15. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.11%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Telecom up by 0.91%, Energy up by 0.59%, Oil & Gas up by 0.57%, Realty up by 0.43% and Metal was up by 0.26%, while Auto down by 0.77%, Consumer Disc down by 0.64%, IT down by 0.55%, Healthcare down by 0.36% and FMCG was down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.38%, Bharti Airtel up by 1.07%, HDFC Bank up by 1.03%, Bajaj Finserv up by 0.56% and Asian Paints up by 0.48%. On the flip side, Mahindra & Mahindra down by 2.39%, Kotak Mahindra Bank down by 1.28%, Nestle down by 1.11%, Titan Company down by 1.09% and Indusind Bank down by 0.96% were the top losers.

Meanwhile, Fitch Ratings in its latest report has said that India, which is less export-oriented than many other Asian economies, would be relatively unaffected in case the US levies higher tariffs on imports. It said higher trade barriers in the wake of the US elections could pose additional challenges for issuers across multiple credit sectors in Asia-Pacific (APAC). Also, weaker growth globally would weigh on macroeconomic prospects in Asia in the event of sharp US tariff increases, especially if China's economic prospects are affected disproportionately. 

The report said that the high share of exports going to the US, coupled with high dependence on exports for growth within the region, means that any hit to exports to the US would have negative repercussions for GDP in many Asian economies, albeit to varying degrees. Fitch views Vietnam as the most vulnerable on this front, but Taiwan, Thailand, Hong Kong, Singapore, Malaysia and South Korea would also have significant exposure. A sharp increase in US tariffs could therefore pose a significant challenge for Asian exporters.

It further said Hong Kong, Taiwan, Singapore and Malaysia also stand out as economies that would be significantly hit. India, which is less export-oriented than many other Asian economies, would be relatively unaffected. Fitch has conducted an analysis of the potential effects on global growth of higher US tariffs. It estimates that there would be a significant hit to global growth prospects under an illustrative scenario in which the US imposes 60 per cent tariffs on all imported goods from China and a 10 per cent across-the-board tariff on all goods imported from the rest of the world.

The CNX Nifty is currently trading at 25050.35, down by 7.00 points or 0.03% after trading in a range of 24908.45 and 25093.40. There were 23 stocks advancing against 26 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were HDFC Life Insurance up by 2.27%, Grasim Industries up by 1.57%, Dr. Reddy's Lab up by 1.57%, Reliance Industries up by 1.32% and ONGC up by 1.08%. On the flip side, Trent down by 3.27%, Mahindra & Mahindra down by 2.45%, Hero MotoCorp down by 1.70%, Nestle down by 1.18% and Titan Company down by 1.17% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 730.25 points or 1.86% to 39,180.30, Taiwan Weighted lost 281.06 points or 1.22% to 23,010.98, Hang Seng declined 31.94 points or 0.16% to 20,286.85, KOSPI dropped 23.09 points or 0.88% to 2,610.36 and Straits Times was down by 0.8 points or 0.02% to 3,594.67. On the flip side, Shanghai Composite strengthened 1.66 points or 0.05% to 3,202.95 and Jakarta Composite was up by 10.61 points or 0.14% to 7,637.56.

European markets were trading mostly in red; France’s CAC fell 51.98 points or 0.69% to 7,469.99 and Germany’s DAX was down by 65.42 points or 0.34% to 19,420.77. On the flip side, UK’s FTSE 100 was up by 50.42 points or 0.61% to 8,299.70.
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