Indian equity benchmarks erased early gains and were trading flat in morning deals on account of selling pressure in heavyweights like Sun Pharma, Dr. Reddy's Lab and Tech Mahindra. Traders turned cautious with Centre for Monitoring of Indian Economy (CMIE) data showing that despite a 124 basis points month-on-month decline in urban joblessness rate, the country’s overall unemployment rate rose again in October, owing to a sudden 175 basis points rise in rural joblessness rate. However, traders found some support with SBI Research’s report stating that the digitisation drive and pandemic-induced emergence of the gig economy have led to a faster formalisation of the economy, with the share of the informal sector shrinking to just 15-20 per cent in 2021 from 52.4 per cent in 2018. On the global front, Asian markets were trading mostly in red as nervous investors awaited several key central bank meetings that could set the tone for risk appetite heading into next year.
The BSE Sensex is currently trading at 60125.88, down by 12.58 points or 0.02% after trading in a range of 60085.59 and 60421.14. There were 12 stocks advancing against 18 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 1.00%.
The top gaining sectoral indices on the BSE were Realty up by 3.25%, Auto up by 1.67%, Utilities up by 1.38%, Consumer Disc up by 1.09%, Power up by 0.89% while, Energy down by 0.47%, Healthcare down by 0.41%, Metal down by 0.14%, Bankex down by 0.13%, Basic Materials down by 0.07% were the losing indices on BSE.
The top gainers on the Sensex were Maruti Suzuki up by 3.72%, NTPC up by 2.49%, Bajaj Auto up by 1.47%, Bajaj Finserv up by 1.33% and Power Grid Corporation up by 1.20%. On the flip side, Sun Pharma down by 2.43%, Dr. Reddy's Lab down by 1.16%, Tech Mahindra down by 1.05%, Tata Steel down by 1.03% and Reliance Industries down by 0.81% were the top losers.
Meanwhile, SBI Research in its latest report has said that the digitisation drive and pandemic-induced emergence of the gig economy have led to a faster formalisation of the economy, with the share of the informal sector shrinking to just 15-20 per cent in 2021 from 52.4 per cent in 2018.
The report stated the note ban hit hardest the informal sector which then constituted 93 per cent of the workforce. The second blow to the informal economy was the GST and the final and the hardest hit came from the pandemic. At least Rs 13 lakh crore has come under the formal economy through various channels over the past few years, including the recent scheme on the E-Shram portal.
Besides, it mentioned the 2011 Census pegged the size of the informal sector in trade, hotels, transport, communication and broadcasting at 40 per cent; in construction at around 34 per cent; 16 per cent of public administration; and 20 per cent of manufacturing and almost 100 per cent formalisation in finance, insurance and utilities, and to a large extent in real estate and agriculture. The formal financial sector has even expanded by 10 per cent post-the pandemic, with the DBT transfers gaining traction and that of formalised utility services size expanded by 1 per cent during the pandemic.
The CNX Nifty is currently trading at 17932.05, up by 2.40 points or 0.01% after trading in a range of 17916.10 and 18012.25. There were 25 stocks advancing against 25 stocks declining on the index.
The top gainers on Nifty were Maruti Suzuki up by 3.67%, NTPC up by 2.49%, Tata Motors up by 1.71%, Bajaj Auto up by 1.46% and Bajaj Finserv up by 1.34%. On the flip side, Sun Pharma down by 2.38%, Dr. Reddy's Lab down by 1.19%, Tech Mahindra down by 1.05%, Tata Steel down by 0.95% and UPL down by 0.90% were the top losers.
Asian markets were trading mostly in red; Nikkei 225 slipped 158.73 points or 0.54% to 29,488.35, Jakarta Composite lost 28.47 points or 0.43% to 6,524.42, Taiwan Weighted dropped 25.04 points or 0.15% to 17,043.20 and Shanghai Composite declined 22.15 points or 0.62% to 3,522.33.
On the flip side, Straits Times advanced 4.13 points or 0.13% to 3,223.18, KOSPI rose 40.32 points or 1.35% to 3,019.26, Hang Seng increased 185.01 points or 0.74% to 25,339.33.
