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Indian markets remain volatile during early afternoon deals
Dec-20-2024

Indian equity benchmarks remained volatile during early afternoon deals, with both Sensex and Nifty falling more than half a percent, impacted by negative cues from other Asian markets along with heavy selling at IT and Capital Goods counters, amid concerns that U.S. President-elect Donald Trump's fiscal, trade and tariff policies could prompt the Federal Reserve to end its rate-cutting cycle. There were some anxiety among traders, as the central government has proposed a new bill to curb unregulated lending and provide for imprisonment of up to 10 years for violators, besides monetary penalties. With a view to curb unregulated lending activities and protect the interest of consumers, the RBI's Working Group on Digital Lending submitted its report in November 2021.

On the global front, Asian markets are trading mostly in red, after the People's Bank of China maintained its interest rates unchanged for the second straight session on Friday. The PBoC maintained its one-year loan prime rate at 3.10 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.60 percent. The move was widely expected. The bank had cut its both LPRs by 25 basis points each in October.

The BSE Sensex is currently trading at 78749.75, down by 468.30 points or 0.59% after trading in a range of 78673.68 and 79587.15. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.70%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.32%, Metal up by 0.31%, Energy up by 0.22% and Healthcare up by 0.10%, while IT down by 1.62%, Capital Goods down by 1.51%, Power down by 1.36%, TECK down by 1.26% and Realty down by 1.24% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 0.88%, Asian Paints up by 0.58%, Titan up by 0.55%, NTPC up by 0.25% and Bajaj Finserv up by 0.15%. On the flip side, Tech Mahindra down by 2.27%, Axis Bank down by 1.97%, Ultratech Cement down by 1.61%, Indusind Bank down by 1.59% and TCS down by 1.55% were the top losers.

Meanwhile, the Federation of All India Farmer Association (FAIFA) has released a comprehensive agricultural roadmap, calling for enhanced digital infrastructure and sustainable farming practices to boost India's agricultural sector through 2040. The white paper, titled ‘Indian Agriculture Outlook 2025’, was unveiled by parliamentarians Magunta Sreenivasulu Reddy and Putta Mahesh Kumar to mark Kisan Divas 2024, highlighting persistent challenges, including low productivity, weather vulnerabilities and fragmented landholdings. 

FAIFA in the report said despite government initiatives across crop, livestock, and fisheries sectors, significant hurdles remain in realising Indian agriculture's full potential. It projected that Indian agriculture will likely grow at a CAGR of 5.5 per cent from 2025 to 2030, reaching a total value of Rs 42 lakh crore. Foodgrain production is projected to increase by 25 per cent by 2030, from the current 330 million metric tonnes. 

The federation, representing farmers growing commercial crops across the country, outlined a three-tiered strategy spanning short-term goals through 2025, medium-term objectives until 2030, and long-term targets extending to 2040. Key short-term recommendations include strengthening the electronic National Agriculture Market (e-NAM), expanding irrigation coverage, and promoting natural farming practices through an Agristack platform. For 2025-2030, FAIFA emphasized the need for private sector investment and streamlined market regulations, while long-term goals focus on achieving universal irrigation coverage and implementing precision agriculture technologies.

The CNX Nifty is currently trading at 23801.35, down by 150.35 points or 0.63% after trading in a range of 23796.35 and 24065.80. There were 14 stocks advancing against 35 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.47%, Hindalco up by 1.37%, Adani Enterprises up by 0.71%, Apollo Hospital up by 0.64% and Asian Paints up by 0.61%. On the flip side, Tech Mahindra down by 2.31%, Axis Bank down by 2.22%, TCS down by 1.83%, Indusind Bank down by 1.77% and Larsen & Toubro down by 1.77% were the top losers.

Asian markets are trading mostly in red; Shanghai Composite weakened 0.7 points or 0.02% to 3,369.33, Straits Times fell 34.62 points or 0.93% to 3,728.26, KOSPI dropped 31.78 points or 1.32% to 2,404.15, Nikkei 225 slipped 111.68 points or 0.29% to 38,701.90 and Taiwan Weighted lost 422 points or 1.87% to 22,510.25, while Hang Seng advanced 40.09 points or 0.2% to 19,792.60 and Jakarta Composite gained 19.27 points or 0.28% to 6,996.51. 
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