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Benchmarks continue to trade in red in morning deals
Feb-06-2023

Indian equity benchmarks continued to trade in red in morning deals, tracking losses in index-heavyweights Tata Steel, Infosys and Hindustan Unilever amid a broadly negative trend in global markets. Traders remain concerned as the government hiked windfall profit tax levied on domestically-produced crude oil as well as on the export of diesel and ATF, in line with firming international oil prices. The levy on crude oil produced by companies such as Oil and Natural Gas Corporation (ONGC) has been increased to Rs 5,050 per tonne from Rs 1,900 per tonne, the order dated February 3. Some anxiety also came with exchange data showing that Foreign Institutional Investors (FIIs) were net sellers in capital markets as they offloaded shares worth Rs 932.44 crore on Friday. Besides, a weak rupee against major rivals dented the domestic equity market sentiments. Investors will also be watching the Reserve Bank of India's monetary policy decision later this week.

On the global front, Asian markets are trading mostly in red after upbeat macroeconomic data from the US brought back fears of more of steep hikes in benchmark interest rates. Back home, coal industry stocks remained in watch as the coal ministry data showed that the country's coal production increased by 12.94 per cent to 89.96 million tonnes in January 2023. The country's coal output stood at 79.65 million tonnes (MT) in the corresponding month of the previous fiscal.

The BSE Sensex is currently trading at 60421.44, down by 420.44 points or 0.69% after trading in a range of 60416.95 and 60847.21. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.18%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Telecom up by 2.80%, Industrials up by 0.23%, Capital Goods up by 0.22%, Healthcare up by 0.13% and FMCG up by 0.07%, while Power down by 1.54%, Utilities down by 1.51%, Metal down by 1.44%, TECK down by 1.02% and IT down by 0.90% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.21%, ITC up by 1.05%, Axis Bank up by 0.79% and Power Grid Corporation up by 0.23%. On the flip side, Tata Steel down by 1.96%, Infosys down by 1.86%, Hindustan Unilever down by 1.64%, Kotak Mahindra Bank down by 1.58% and Bharti Airtel down by 1.42% were the top losers.

Meanwhile, The Reserve Bank of India (RBI) has said India's banking sector is resilient and stable, and the central bank maintains constant vigil on the lenders amid concerns over banks' exposure to the embattled Adani Group. Talking about private reports expressing concern about the exposure of Indian banks to a business conglomerate, RBI said that it is constantly monitoring the banking sector. However, the RBI did not name the Adani Group.

As per the current assessment, the RBI said, the banking sector remains resilient and stable. Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy.

It mentioned ‘As the regulator and supervisor, the RBI maintains a constant vigil on the banking sector and on individual banks with a view to maintain financial stability. The RBI has a Central Repository of Information on Large Credits (CRILC) database system where the banks report their exposure of Rs 5 crore and above which is used for monitoring purposes.’

The CNX Nifty is currently trading at 17716.90, down by 137.15 points or 0.77% 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 2.15%, Hero MotoCorp up by 1.26%, ITC up by 0.96%, Axis Bank up by 0.82% and Adani Ports &SEZ up by 0.61%. On the flip side, Adani Enterprises down by 7.36%, Divi's Lab down by 3.47%, Eicher Motors down by 2.31%, Tata Steel down by 2.24% and HDFC Life Insurance down by 2.22% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 156.62 points or 1% to 15,446.04, Hang Seng declined 500.22 points or 2.36% to 21,160.25, Shanghai Composite weakened 32.89 points or 1.02% to 3,230.52, KOSPI dropped 29.89 points or 1.21% to 2,450.51 and Jakarta Composite plunged 32.01 points or 0.47% to 6,879.72.

On the flip side, Straits Times rose 4.06 points or 0.12% to 3,388.35 and Nikkei 225 surged 192.27 points or 0.7% to 27,701.73.
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