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Weakness persist in markets; Sensex down over 400 points
Oct-21-2021

Mirroring other Asian peers, weakness increased in the Indian equity markets in afternoon trade. Sentiments got hit as India, the world's third-largest energy consumer and importer, warned of high oil prices hurting the nascent and fragile global economic recovery. On the sectoral front, coal stocks were buzzing as senior power ministry official stated that India is considering maintaining strategic reserves of natural gas and imported coal to address future supply shocks, as the energy hungry nation battles a crippling coal shortage. On the global front, Asian markets were trading mostly in red as investors weighed corporate earnings, elevated inflation and risks from China's property sector. Evergrande shares dropped sharply, returning to trade on Thursday after a halt that lasted more than two weeks.

Back home, stocks from Information Technology, Energy and TECK counters were the weak spell in the trade, however, stocks from PSU, Power and Oil & Gas space limited the loss of the bourses. 30 share index of BSE-Sensex- declining by over 400 points was trading below 60900 level, while barometer index of NSE-Nifty-trading lower by over 100 points. The overall market breadth on BSE was in the favour of declines which thrashed advances in the ratio of 1470:1680, while 154 shares remained unchanged.

The BSE Sensex is currently trading at 60838.92, down by 421.04 points or 0.69% after trading in a range of 60697.35 and 61621.20. There were 5 stocks advancing against 24 stocks declining, while 1 stock remain unchanged on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.51%, while Small cap index was down by 0.36%.

The top gaining sectoral indices on the BSE were PSU up by 0.63%, Power up by 0.60%, Oil & Gas up by 0.37%, Bankex up by 0.37% and Utilities was up by 0.36%, while IT down by 1.62%, Energy down by 1.51%, TECK down by 1.49%, Telecom down by 1.41% and Consumer Durables was down by 0.89% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 3.55%, Power Grid up by 0.93%, HDFC up by 0.84%, Sun Pharma up by 0.50% and NTPC was up by 0.38%. On the flip side, Dr. Reddy's Lab down by 2.60%, Reliance Industries down by 2.44%, Bharti Airtel down by 1.95%, HCL Tech down by 1.89% and Asian Paints was down by 1.72% were the top losers.

Meanwhile, Labour ministry has said that point-to-point rate of inflation based on the Consumer Price Index-Agricultural Labourers (CPI-AL) and  Consumer Price Index-Rural Labourers (CPI-RL) eased to 2.89 percent and 3.16 percent in September 2021 compared to 3.90 percent and 3.97 percent respectively in August 2021, mainly due to lower prices of certain food items. It said the inflation rates based on CPI-AL and CPI-RL had stood at 6.25 percent and 6.10 percent, respectively, in September 2020.

Similarly, the ministry stated that the food inflation based on CPI-AL and CPI-RL stood at 0.50 per cent and 0.70 percent in September 2021, compared with 2.13 percent and 2.32 per cent respectively in August 2021. The rates had stood at 7.65 percent and 7.61 percent, respectively, during September 2020. The All-India Consumer Price Index Numbers for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for September 2021 increased by 1 point and 2 points to stand at 1,067 and 1,076 points, respectively. CPI-AL and CPI-RL were 1,066 points and 1,074 points, respectively, in August 2021.

It further stated that the major contribution towards the rise in the general index of agricultural labourers and rural labourers came from 'fuel and light' and 'clothing, bedding and footwear' to the extent of 1.93 points and 1.86 points and 0.75 points and 1.45 points, respectively. This is mainly due to a rise in prices of firewood, kerosene oil, shirting cloth cotton (mill), leather shoes/chappal, and plastic shoes/chappal.

The CNX Nifty is currently trading at 18163.55, down by 103.05 points or 0.56% after trading in a range of 18106.65 and 18384.20. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 3.83%, Grasim Industries up by 2.04%, Indian Oil Corp. up by 1.95%, BPCL up by 1.67% and Tata Motors was up by 1.27%. On the flip side, Dr. Reddy's Lab down by 2.42%, Reliance Industries down by 2.41%, Hero MotoCorp down by 1.99%, HCL Tech down by 1.91% and Bharti Airtel was down by 1.83% were the top losers.

Asian markets were trading mostly in red, KOSPI fell 5.80 points or 0.19% to 3,007.33, Straits Times trembled 4.55 points or 0.14% to 3,193.53, Jakarta Composite lost 7.34 points or 0.11% to 6,648.66, Nikkei 225 slipped 546.97 points or 1.87% to 28,708.58 and Hang Seng was down by 207.04 points or 0.79% to 25,928.98.

On the other hand; Taiwan Weighted strengthened 1.69 points or 0.01% to 16,889.51 and Shanghai Composite was up by 0.28 points or 0.01% to 3,587.28.
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