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Domestic indices trade lower in early deals; Adani Enterprises falls over 5%
Feb-06-2023

Indian equity benchmarks, after previous session’s rally, made negative start on Monday on account profit booking coupled with weak trade in global peers amid geopolitical concerns. Soon, markets extend their losses and are trading lower with cut of around half a percent each in early deals. Market participants avoided taking any long positions ahead of a three-day policy meeting of the Reserve Bank of India’s (RBI's) monetary policy committee that gets underway later today. The Indian central bank is likely to raise rates by 25 basis points despite signs of softening retail inflation. Traders were concerned as Foreign investors pulled out Rs 28,852 crore from Indian equities in January, making it the worst outflow in the last seven months, primarily due to attractiveness of the Chinese markets.

On the global front, most of the Asian markets are trading lower following the broadly negative cues from Wall Street on Friday, as the unexpected drop in US unemployment rate, the lowest since May 1969, led to renewed concerns the US Fed will keep interest rates at higher than currently expected levels for many more months. Heightened geopolitical concerns between the US and China also made markets in Asia jittery, after the US downed an alleged Chinese spy balloon.

Back home, automobile industry stocks were in focus as the Minister of State in the Union Ministry of Commerce and Industry, Anupriya Patel said the Vehicle exports have witnessed an impressive growth during 2021-22. In stock specific developments, Tata Steel declined ahead of its earnings release. Vodafone Idea shares jumped after a long-awaited equity conversion plan was cleared, paving the for the government to become the largest shareholder in the company.

The BSE Sensex is currently trading at 60595.51, down by 246.37 points or 0.40% after trading in a range of 60438.14 and 60847.21. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.06%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were Telecom up by 2.64%, Capital Goods up by 0.27%, Consumer Durables up by 0.22%, Industrials up by 0.19%, Bankex up by 0.06%, while Utilities down by 1.90%, Power down by 1.81%, Metal down by 1.42%, Auto down by 1.06%, Oil & Gas down by 0.98% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.92%, ITC up by 1.14%, Axis Bank up by 0.79%, HDFC Bank up by 0.28% and HDFC up by 0.06%. On the flip side, Tata Steel down by 1.79%, Hindustan Unilever down by 1.61%, Asian Paints down by 1.42%, Kotak Mahindra Bank down by 1.36% and Infosys down by 1.29% were the top losers.

Meanwhile, expressing optimism over budget, Union Finance Minister Nirmala Sitharaman has said growth is the main focus of the budget for FY24 presented by her recently. She added that the budget proposals establish both fiscal consolidation and growth, especially inclusive growth.

She noted ‘Growth is the main focus. We want to sustain that recovery, sustain that growth’. She gave credit for ensuring growth to the people of the country, who absorbed the relief and policy measures introduced by the government since the onset of the pandemic to make India the second-fastest growing economy.

The finance minister said it was the ‘express desire’ of Prime Minister Narendra Modi to continue with the elevated public capital expenditure, due to which she has proposed a higher outlay of Rs 10 lakh crore under the head. She also acknowledged the budget-making team for making it possible to devote such a high quantum of resources for the task amid the myriad challenges like the need for fiscal consolidation. She said ‘Mumbai should be liking it (the proposals)’.

The CNX Nifty is currently trading at 17761.35, down by 92.70 points or 0.52% after trading in a range of 17712.75 and 17823.70. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.18%, Adani Ports & SEZ up by 1.33%, ITC up by 1.09%, Axis Bank up by 0.86% and HDFC Bank up by 0.39%. On the flip side, Adani Enterprises down by 5.12%, Divi's Lab down by 3.75%, Eicher Motors down by 2.73%, HDFC Life Insurance down by 2.59% and Tata Steel down by 1.87% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 510.68 points or 2.36% to 21,149.79, Taiwan Weighted lost 151.97 points or 0.97% to 15,450.69, Jakarta Composite plunged 47.45 points or 0.69% to 6,864.28, Shanghai Composite weakened 32.89 points or 1.02% to 3,230.52 and KOSPI dropped 25.37 points or 1.02% to 2,455.03. on the other hand, Nikkei 225 surged 202.13 points or 0.73% to 27,711.59 and Straits Times was up by 4.52 points or 0.13% to 3,388.81.

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