Markets continue to trade in red in late morning deals

Indian equity markets were continuously trading in red during late morning deals ahead of RBI Monetary Policy Committee meeting starting today. The outcome of the meeting will come on December 07. There are expectations that the Reserve Bank of India MPC is likely to announce a 35 basis points (bps) rate hike.  However, lower side remained capped as Indian services firms benefited from the indulgent demand conditions in November. Inflows to new businesses grew at the highest rate in three months, resulting in faster output and increased creation of employment opportunities. The S&P Global India Services PMI Business Activity Index grew from 55.1 in October to 56.4 in November, due to a spike in output. The factors that resulted in the increased output were attributed to successful marketing campaigns, unfettered demand strength as well as an upturn in sales.

On the global front, Asian markets were trading mostly in green as traders remained optimistic that the US Fed will slow the pace of interest rate hikes as early as next month. Back home, in stock specific development, Bank of India rallied after it raised Rs 1,500 crore through additional Tier I bonds.

The BSE Sensex is currently trading at 62653.43, down by 215.07 points or 0.34% after trading in a range of 62507.88 and 62939.63. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.06%, while Small cap index up by 0.50%.

The top gaining sectoral indices on the BSE were Metal up by 1.51%, Realty up by 0.48%, PSU up by 0.27%, Bankex up by 0.07% and Consumer Disc up by 0.02%, while Oil & Gas down by 0.83%, Energy down by 0.74%, IT down by 0.63%, TECK down by 0.59% and Power down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.87%, Indusind Bank up by 1.38%, SBI up by 0.65%, Asian Paints up by 0.39% and NTPC up by 0.35%. On the flip side, Ultratech Cement down by 1.06%, Reliance Industries down by 0.94%, Tech Mahindra down by 0.91%, Nestle down by 0.86% and Infosys down by 0.69% were the top losers.

Meanwhile, Niti Aayog CEO Parameswaran Iyer has said that the food processing sector is critical for the Indian economy as well as job creation and stressed on ramping up production and exports of processed items. He said there is a need to encourage the MSME sector to enter the food processing sector, which he described as a very important sector for the health of the economy and people. He underlined that food processing can boost farmers income and also help in achieving nutritional goals. He said there is a need to augment primary processing at farm level.

Stating that food security has become important in the current global context, the Niti Aayog CEO said the government has taken a number of steps in this regard. He highlighted that there has been a steady growth in agriculture. On the food processing front also, he said a number of initiatives have been taken by the government, including the Production Linked Incentive (PLI) scheme. He added that this is a very, very important program of the government, which is really looking to incentivise investment, but manufacturing in very critical strategic sectors such as food processing.

Iyer said it is crucial to enable distributed primary processing towards building up scale for higher value processing. He noted that scaling up of the food processing ecosystem is also going to have a direct impact on improving farmers incomes, which is a very high policy priority for the government. He said ‘So on the one hand, it will allow for better price realisation. On the other hand, of course, it's going to help us reach our nutrition goals.’ He also emphasised on incentivising farmers to move towards better cropping practices, giving them a better return on the investment and increasing their incomes.

The CNX Nifty is currently trading at 18638.90, down by 57.20 points or 0.31% after trading in a range of 18591.35 and 18728.60. There were 13 stocks advancing against 35 stocks declining, while 2 stocks remained unchanged on the index.

The top gainers on Nifty were Hindalco up by 2.98%, Tata Steel up by 2.19%, JSW Steel up by 1.65%, Indusind Bank up by 1.43% and SBI up by 0.73%. On the flip side, Adani Enterprises down by 2.08%, Britannia down by 1.19%, Tata Motors down by 1.15%, SBI Life Insurance down by 1.00% and Tech Mahindra down by 0.96% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 14.77 points or 0.05% to 27,792.67, Taiwan Weighted strengthened 33.41 points or 0.22% to 15,004.09, Straits Times advanced 14.22 points or 0.44% to 3,273.36, Shanghai Composite gained 53.12 points or 1.68% to 3,209.26 and Hang Seng increased 652.17 points or 3.49% to 19,327.52. However, KOSPI fell 12.26 points or 0.5% to 2,422.07 and Jakarta Composite lost 1.89 points or 0.03% to 7,017.75.