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Sensex, Nifty witness fall in late morning session
May-25-2022

Indian equity benchmarks witnessed a fall in late morning session, despite positive cues from other Asian markets. Traders got cautious as export of engineering goods to CIS countries including Russia and Ukraine fell the most year-on-year during April 2022, while that to North America registered the highest growth during this period, according to an EEPC India analysis. Besides, as global challenges push inflation in India and elsewhere higher, top union ministers said the India growth story in the long-run remains strong but necessary safeguards are being put in place to tackle the short-term issues and the government is open to taking further measures as well if required.

On the global front, Asian markets were trading mostly in green, after Singapore's gross domestic product was up an annualized 3.7 percent in the first quarter of 2022, the Ministry of Trade and Industry said on Wednesday. That matched expectations and was down from 6.1 percent in the previous three months. On a seasonally adjusted quarterly basis, GDP was up 0.7 percent - shy of expectations for a gain of 0.8 percent and slowing from 2.3 percent in the three months prior.

The BSE Sensex is currently trading at 53913.05, down by 139.56 points or 0.26% after trading in a range of 53895.95 and 54379.59. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.13%, while Small cap index was down by 1.82%.

The only gaining sectoral index on the BSE was Bankex up by 0.68%, while IT down by 2.42%, TECK down by 1.80%, Consumer discretionary down by 1.74%, Realty down by 1.49% and Basic Materials down by 1.34% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.96%, Nestle up by 1.55%, ICICI Bank up by 1.14%, Indusind Bank up by 0.97% and HDFC up by 0.87%. On the flip side, Asian Paints down by 6.01%, Tech Mahindra down by 3.62%, TCS down by 2.63%, Wipro down by 2.55% and HCL Tech. down by 1.73% were the top losers.

Meanwhile, the commerce and industry ministry has said that as many as 853 foreign direct investment (FDI) proposals have been disposed of through the foreign investment facilitation portal (FIFP) in the last five years. The Foreign Investment Facilitation Portal (FIFP) was developed after the abolition of Foreign Investment Promotion Board (FIPB) in May 2017. After the abolition of FIPB, granting of government approval for overseas investment under the FDI (Foreign Direct Investment) policy and FEMA (Foreign Exchange Management Act) regulations was entrusted to the concerned ministries/departments.

The ministry said FDI proposals are now required to be filed only on the portal which is managed by the DPIIT. The proposals filed on the portal are forwarded to the concerned administrative ministry and are also simultaneously marked to the ministry of external affairs and the Reserve Bank of India for comments and to the ministry of home affairs for necessary security clearance, wherever required as per the norms.

It also said a Standard Operating Procedure (SOP) for processing of FDI proposals, including documents to be filed, through the portal was framed and laid down by the DPIIT in June, 2017. The DPIIT secretary reviews the pendency of all FDI proposals on a monthly basis. Since the beginning of the new clearance process, not only the foreign investment has increased but also the number of countries bringing in FDI into India. Meanwhile, in 2014-15, FDI inflow in India stood at $45.15 billion, which has increased to $83.57 billion in 2021-22. In 2021-22 FDI has been reported from 101 countries. In 2020-21, it was reported from 97 countries.

The CNX Nifty is currently trading at 16076.55, down by 48.60 points or 0.30% after trading in a range of 16067.00 and 16223.35. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 3.51%, HDFC Life Insurance up by 2.80%, Kotak Mahindra Bank up by 1.96%, Nestle up by 1.47% and ICICI Bank up by 1.20%. On the flip side, Asian Paints down by 5.70%, Adani Ports & SEZ down by 5.04%, Tech Mahindra down by 3.91%, TCS down by 2.68% and Wipro down by 2.61% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 167.03 points or 1.05% to 16,130.66, Hang Seng increased 128.88 points or 0.64% to 20,240.98, KOSPI rose 19.98 points or 0.77% to 2,625.85 and Shanghai Composite gained 17.73 points or 0.58% to 3,088.66. On the flip side, Nikkei 225 fell 5.03 points or 0.02% to 26,743.11, Straits Times trembled 6.50 points or 0.2% to 3,188.54 and Jakarta Composite lost 30.72 points or 0.44% to 6,883.42.

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