Benchmarks trade with significant losses; PSU banks underpressure

The frontline indices traded with major losses in mid-afternoon trade. The Nifty traded below the 23,650 mark. PSU bank shares extended losses for the second consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex dropped 770.80 points or 0.98% to 77,904.38. The Nifty 50 index fell 271.20 points or 1.14% to 23,612.25.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index dropped 2.34% and the S&P BSE Small-Cap index tumbled 2.74%.

The market breadth was weak. On the BSE, 652 shares rose and 3,284 shares fell. A total of 96 shares were unchanged.

Economy:

Indias retail inflation, based on the Consumer Price Index (CPI), in October 2024 surged to a 14-month high of 6.21%, according to the latest official data released on Tuesday. Indias retail inflation had stood at a nine-month high of 5.49% in September 2024. It was at 4.87% in October 2023.

Indias industrial production grew by 3.1% in September, according to official data released on Tuesday. In the previous month of August, the factory output, based on the Index of Industrial Production (IIP), was in the negative territory at (-) 0.1%. However, the IIP growth had stood at 6.4% in September 2023.

Buzzing Index:

The Nifty PSU Bank index slipped 2.17% to 6,599.30. The index fell 4.05% in two consecutive trading sessions.

Punjab & Sind Bank (down 4.65%), UCO Bank (down 3.58%), Central Bank of India (down 3.53%), Bank of Maharashtra (down 3.31%) and Bank of India (down 3.27%) Indian Overseas Bank (down 3.07%), Indian Bank (down 2.99%), Union Bank of India (down 2.63%), Bank of Baroda (down 2.02%) and Canara Bank (down 1.89%) declined.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.22% to 6.922 as compared with previous close 6.907.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.4050, compared with its close of 84.3900 during the previous trading session.

MCX Gold futures for 5 Dec 2024 settlement rose 0.28% to Rs 75,114.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.08% to 106.11.

The United States 10-year bond yield gained 0.11% to to 4.441.

In the commodities market, Brent crude for Jan 2025 settlement added 2 cents or 0.03% to $71.91 a barrel.

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