Shares extend losses; Nifty holds 17,400 level

The benchmark indices hovered near the day's low in mid-afternoon trade. Index majors Reliance Industries (RIL) (down 2.04%) and Housing Development Finance corporation (HDFC) (down 1.28%) dragged. The Nifty managed to hold above 17,400 mark. IT and media stocks bucked weak market trend.

At 14:30 IST, the barometer index, the S&P BSE Sensex, tumbled 371.98 points or 0.63% at 58,414.69. The Nifty 50 index tanked 103.95 points or 0.59% at 17,407.35.

In the broader market, the S&P BSE Mid-Cap index shed 0.24% while the S&P BSE Small-Cap index added 0.52%.

The market breadth was positive. On the BSE, 1,935 shares rose and 1,502 shares fell. A total of 173 shares were unchanged.

Economy:

India's index of industrial production (IIP) grew by 3.2% in October 2021, according to the data released by the Ministry of Statistics & Programme (MoSPI) on Friday. Industrial output, as measured by IIP, leapt 4.5% in October 2020 and surged 3.1% in September. Meanwhile, the mining output during October (2021) rose by 11.4%, whereas, manufacturing sector output jumped 2%. Electricity generation in October grew 3.1%.

As per the BRICS Economic Bulletin 2021 released by the Reserve Bank of India (RBI) on 10 December 2021, India's recovery from the slowdown inflicted by the COVID-19 pandemic is projected to be higher than other member nations.

Numbers to Track:

The yield on 10-year benchmark federal paper rose to 6.371% as compared with 6.370% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 75.5050, compared with its close of 75.78 during the previous trading session.

MCX Gold futures for 4 February 2022 settlement rose 0.13% to Rs 48,225.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, rose 0.25% to 96.34.

In the commodities market, Brent crude for February 2022 settlement fell 34 cents at $75.49 a barrel.

Buzzing Index:

The Nifty Oil & Gas index fell 1.15% to 7,600.80. The index added 3.24% in the past four trading sessions.

Reliance Industries (RIL) (down 2.04%), Hindustan Petroleum Corporation (HPCL) (down 1.98%), Indian Oil Corporation (IOCL) (down 1.71%), Bharat Petroleum Corporation (BPCL) (down 1.25%) and Petronet LNG (down 1.12%) declined.

Global Markets:

European stocks opened higher while most Asian stocks rallied on Monday, with investors looking ahead to a week of central bank meetings that could indicate the end of US policy stimulus. Investors now await the Federal Reserve's policy decision, due on Wednesday. The Fed is among the 20 central banks due to meet throughout the week, with the group also including the European Central Bank, the Bank of England and the Bank of Japan.

Geopolitical tensions are on the rise after the Group of Seven reportedly warned Russia on Sunday to de-escalate its activities around Ukraine or face "massive consequences."

In the U.K., the government raised the coronavirus threat level on Sunday and warned the rapid spread of the omicron strain pushed the country into risky territory. Prime Minister Boris Johnson reportedly said the U.K. faces a "tidal wave" of COVID-19 cases caused by the new variant.

US stocks advanced on Friday and the S&P 500 notched an all-time closing high as market participants digested an inflation reading that was in line with consensus, but also marked the largest annual increase in consumer prices in nearly four decades. On Friday, data showed US consumer prices continued to surge in November, climbing 6.8% compared to the same month in 2020, the biggest jump since June 1982.

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