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Bourses trade deep in red in late afternoon session
Nov-12-2024

Indian equity markets traded deep in red in late afternoon session ahead of India’s inflation data later in a day. The broader indices, the BSE Mid cap index and Small cap index traded with cut of over half a percent. Globally, traders were concerned over US President-elect Donald Trump's potential aggressive trade policies. Investors overlooked report that with an aim to further enhance the ease of doing business in India, the Reserve Bank of India (RBI) has relaxed norms by finalizing an operational framework for reclassification of Foreign Portfolio Investment made by foreign portfolio investors (FPIs) to Foreign Direct Investment (FDI) under Foreign Exchange Management (Non-debt Instruments) Rules, 2019, when they exceed the 10% ownership limit in an Indian company.

On the global front, Asian markets were trading mostly in red with Chinese and Hong Kong markets leading losses, as investors await U.S. President-elect Trump's stance on the economy, immigration, foreign policy and more. European markets were trading lower as investors fret about China's economic recovery and wait for policy hints from the Trump administration.

The BSE Sensex is currently trading at 78816.63, down by 679.52 points or 0.85% after trading in a range of 78767.49 and 79820.98. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.51%, while Small cap index was down by 0.62%.

The few gaining sectoral indices on the BSE were Realty up by 0.72%, TECK up by 0.34% and  IT was up by 0.32%, while Power down by 2.18%, PSU down by 1.72%, Utilities down by 1.65%, Capital Goods down by 1.64% and Bankex was down by 1.49% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 0.75%, HCL Tech up by 0.63%, Infosys up by 0.58%, Reliance Industries up by 0.55% and TCS up by 0.40%. On the flip side, HDFC Bank down by 2.70%, NTPC down by 2.47%, Asian Paints down by 2.32%, Tata Motors down by 2.16% and Power Grid down by 2.11% were the top losers.

Meanwhile, with an aim to further enhance the ease of doing business in India, the Reserve Bank of India (RBI) has relaxed norms by finalizing an operational framework for reclassification of Foreign Portfolio Investment made by foreign portfolio investors (FPIs) to Foreign Direct Investment (FDI) under Foreign Exchange Management (Non-debt Instruments) Rules, 2019, when they exceed the 10% ownership limit in an Indian company. 

Previously, foreign portfolio investors had to either divest their excess holdings or seek a cumbersome reclassification process. Now, the RBI has streamlined this process, providing a clear pathway for FPIs to retain their investments in India, subject to certain conditions.

In order to reclassify their investment, FPIs will need to obtain necessary approvals from the government and the Indian company. The entire process, including reporting and transfer of shares, must be completed within a specified timeframe. Once reclassified as FDI, the investment will be governed by FDI regulations and will continue to be treated as FDI even if the ownership falls below 10% in the future.

The CNX Nifty is currently trading at 23921.40, down by 219.90 points or 0.91% after trading in a range of 23908.65 and 24242.00. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Trent up by 1.45%, HCL Tech up by 0.77%, Sun Pharma up by 0.75%, Infosys up by 0.67% and Reliance Industries up by 0.45%. On the flip side, Britannia down by 6.85%, HDFC Bank down by 3.10%, NTPC down by 2.76%, Asian Paints down by 2.40% and Bharat Electronics down by 2.40% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 580.05 points or 2.92% to 19,846.88, Taiwan Weighted lost 547.87 points or 2.38% to 22,981.77, Nikkei 225 slipped 157.23 points or 0.4% to 39,376.09, KOSPI dropped 49.09 points or 1.98% to 2,482.57, Shanghai Composite weakened 48.1 points or 1.41% to 3,421.97 and Straits Times was down by 35.15 points or 0.94% to 3,704.32. On the flip side, Jakarta Composite was up by 67.24 points or 0.93% to 7,333.70.

European markets were trading lower; UK’s FTSE 100 decreased 53.86 points or 0.66% to 8,071.33, France’s CAC fell 66.21 points or 0.89% to 7,360.67 and Germany’s DAX was down by 158.62 points or 0.82% to 19,289.98.
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