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Weak trade persists over Dalal Street
Nov-12-2024

A weak trade persisted over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading marginally lower, on the back of negative cues from other Asian markets along with selling at Power and Auto counters, as investors awaited clarity on U.S. President-elect Donald Trump's policy proposals and looked ahead to the release of key U.S. inflation readings this week for additional clues to the Fed's rate trajectory. However, downside remained capped, after the Reserve Bank of India (RBI) has relaxed norms for foreign portfolio investors (FPIs) to reclassify their investments as foreign direct investment (FDI) when they exceed the 10% ownership limit in an Indian company. This would further enhance the ease of doing business in India.

On the global front, Asian markets were trading mostly in red, after a measure of the public assessment of the current situation of the Japanese economy weakened further in October, and future conditions remained pessimistic. The survey data from the Cabinet Office showed that the current conditions index of the Economy Watchers' Survey, which measures the present situation of the economy, dropped to 47.5 in October from 47.8 in September. 

The BSE Sensex is currently trading at 79391.51, down by 104.64 points or 0.13% after trading in a range of 79350.11 and 79820.98. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.17%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Realty up by 1.95%, Healthcare up by 0.80%, Telecom up by 0.69%, TECK up by 0.62% and IT up by 0.53%, while Power down by 1.02%, Auto down by 0.76%, PSU down by 0.70%, FMCG down by 0.68% and Utilities down by 0.61% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.36%, ICICI Bank up by 1.08%, Bharti Airtel up by 1.03%, HCL Tech. up by 0.91% and Infosys up by 0.78%. On the flip side, Tata Motors down by 1.67%, HDFC Bank down by 1.60%, Asian Paints down by 1.58%, NTPC down by 1.29% and Maruti Suzuki down by 1.22% were the top losers.

Meanwhile, Union Minister Hardeep Singh Puri has highlighted that India is moving towards a gas-based economy from the imported crude-based economy for its energy requirements. He said in recent years the government has taken transformative steps to increase domestic gas production and reduce India's reliance on imports. Currently, India imports about 50 per cent of its natural gas needs, but with new investments in the upstream sector, this dependence is expected to come down over time.

The minister said by encouraging domestic producers to invest in gas production, the government is not only creating a stronger energy foundation within India but also supporting the nation's economic and environmental goals. He said India is well on its way towards transforming into a gas-based economy with key steps taken under the leadership of government. He also said ‘since we import about 50% of its natural gas requirement, enhanced gas production within the country will reduce our import dependence’.

He further said that gas production in India saw an 18 per cent increase last year, a promising sign of growth. Forecasts show production volumes reaching 38.2 billion cubic meters (BCM) in 2024, 40.9 BCM in 2025, and 45.3 BCM by 2026. This steady rise in production will support India's journey towards becoming a gas-based economy, ensuring greater energy security and stability. He noted that one of the key reforms implemented by the government includes an incentive for gas producers from new wells in nomination fields, which are eligible to receive 20 per cent higher prices. He added that this policy aims to attract greater investment in India's exploration and production (E&P) sector, boosting confidence among investors and encouraging them to take an active role in India's energy transition.

The CNX Nifty is currently trading at 24108.35, down by 32.95 points or 0.14% after trading in a range of 24095.30 and 24242.00. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Trent up by 3.43%, Sun Pharma up by 1.42%, ICICI Bank up by 1.00%, Bharti Airtel up by 0.98% and HCL Tech. up by 0.94%. On the flip side, Britannia down by 4.99%, HDFC Bank down by 1.74%, Tata Motors down by 1.73%, Asian Paints down by 1.52% and NTPC down by 1.46% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 620.56 points or 3.04% to 19,806.37, Shanghai Composite weakened 51.16 points or 1.47% to 3,418.91, Straits Times fell 35.03 points or 0.94% to 3,704.44, KOSPI dropped 49.09 points or 1.98% to 2,482.57, Nikkei 225 slipped 157.23 points or 0.4% to 39,376.09 and Taiwan Weighted lost 547.87 points or 2.38% to 22,981.77, while Jakarta Composite gained 65.77 points or 0.91% to 7,332.23.
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