Indian equity markets remained in red and were trading with cut of over 0.60 percent in late morning deals as market participants indulged in reducing their positions. Meanwhile, broader indices were also trading in red with BSE Mid cap and BSE Small cap falling in the range of 0.30-1.15%. Weak cues from global markets weighed on the domestic sentiments. Traders remained cautious after US Treasury yields surged to their highest levels in over a decade, worrying investors that higher borrowing rates could further stall the housing market. The yield on the 10-year Treasury note on Tuesday was at 4.802%, its highest level since August 2007. Further, depreciation in Indian rupee against dollar also weighed down sentiments. Rupee weakened by 5 paise to 83.25 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks.

On the global front, Asian markets were trading in red, following negative cues from US markets overnight, after better-than-expected US jobs data, strong US dollar and spiking treasury yields at its highest level in 16 years continued to raise concerns the US Fed will hold interest rates higher for longer than previously anticipated to tame the stubborn inflation. Back home, almost all the sectoral indices on BSE were trading into negative territory; however stocks from FMCG counter was the only exception, stocks from counters Metal, Healthcare, Realty, PSU and Bankex were the prominent losers of the session. 

The BSE Sensex is currently trading at 65054.52, down by 457.58 points or 0.70% after trading in a range of 64978.97 and 65332.52. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.12%, while Small cap index down by 0.34%.

The only gaining sectoral index on the BSE was FMCG up by 0.01%, while Metal down by 1.34%, Healthcare down by 1.30%, Realty down by 1.30%, PSU down by 1.26% and Bankex down by 1.22% were the top losing indices on BSE.

The only gainers on the Sensex were Nestle up by 1.28%, HDFC Bank up by 0.83%, Hindustan Unilever up by 0.53% and Asian Paints up by 0.45%. On the flip side, Axis Bank down by 2.92%, Indusind Bank down by 2.48%, Maruti Suzuki down by 1.78%, Sun Pharma down by 1.78% and NTPC down by 1.72% were the top losers.

Meanwhile, Engineering Exports Promotion Council (EEPC) has said that overall exports of engineering goods from the country have been affected by the global slowdown. It said during April to August in 2023, overall engineering exports dropped 4.55 per cent to $44.62 billion as against $46.74 billion in the previous similar period of 2022.

The exporters' body said engineering exports to Russia surged 178 per cent to $568.41 million during April to August of fiscal 2023-24, which was $204.17 million in the corresponding previous period. It also said that some of the major trading partners like the US and European countries have been affected by the global slowdown. The Russia-Ukraine conflict has also been ongoing, while China is also experiencing a slowdown. All these factors have affected India's engineering export demand. Engineering exports to the US fell 14 per cent year-on-year during April to August 2023.

EEPC is also of the view that India should sign free trade agreements (FTAs) with non-traditional markets like Latin America and Africa to boost engineering exports. The FTAs with UAE and Australia have provided a fillip to engineering exports with shipments to both nations rising nine per cent during April to August of the current financial year. Engineering exports to the UAE during April to August of the current fiscal touched $2.24 billion, while that for Australia touched $ 596.14 million.

The CNX Nifty is currently trading at 19402.00, down by 126.75 points or 0.65% after trading in a range of 19375.40 and 19457.80. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.49%, Nestle up by 1.28%, Adani Ports up by 1.13%, Eicher Motors up by 0.93% and HDFC Bank up by 0.83%. On the flip side, Axis Bank down by 3.07%, Indusind Bank down by 2.46%, Apollo Hospital down by 2.11%, Maruti Suzuki down by 1.88% and Sun Pharma down by 1.74% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 190.11 points or 1.1% to 17,141.11, Taiwan Weighted lost 180.96 points or 1.11% to 16,273.38, Jakarta Composite plunged 73.2 points or 1.07% to 6,867.69, Straits Times fell 51.05 points or 1.6% to 3,141.30, KOSPI dropped 60.64 points or 2.46% to 2,404.43 and Nikkei 225 slipped 711.06 points or 2.28% to 30,526.88.