Indices remain in red in late morning session

Indian equity benchmarks remained in red in late morning session, with both Sensex and Nifty trading lower with notable losses. Negative cues from other Asian markets impacted sentiments over the Dalal Street. Traders got cautious, amid reports that inflows into equity mutual funds dropped sharply by 40 per cent to Rs 5,988 crore in June on profit booking by investors as stock markets witnessed sharp rallies in recent times. In comparison, the equity mutual funds saw a net inflow to the tune of Rs 10,083 crore in May, the highest fund infusion in 14 months, data from the Association of Mutual Funds in India showed on Thursday.

On the global front, Asian markets were trading mostly in red, after consumer prices in China were up 1.1 percent on year in June. The National Bureau of Statistics said that was shy of expectations for an increase of 1.3 percent, which would have been unchanged from the May reading. On a monthly basis, consumer prices fell 0.4 percent - again missing expectations for a flat reading following the 0.2 percent decline a month earlier.

The BSE Sensex is currently trading at 52350.52, down by 218.42 points or 0.42% after trading in a range of 52228.01 and 52555.73. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.33%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Realty up by 1.54%, Metal up by 0.76%, Telecom up by 0.52%, Utilities up by 0.44% and Consumer Durables up by 0.37%, while Energy down by 0.63%, IT down by 0.57%, Bankex down by 0.53%, Capital Goods down by 0.48% and TECK down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.29%, Tata Steel up by 1.79%, Bharti Airtel up by 0.97%, Hindustan Unilever up by 0.67% and Titan Co up by 0.43%. On the flip side, Bajaj Auto down by 1.91%, TCS down by 1.31%, Axis Bank down by 1.19%, Reliance Industries down by 0.84% and HDFC down by 0.78% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) in its latest report has said that despite the impact of COVID-19 second wave, tractor sales volume is expected to grow in low-mid single digits of 3-6 percent in 2021-22, mainly on a higher base following the 27 per cent growth witnessed in FY21. It also said tractor sales volume is likely to pick up from the second quarter of the ongoing fiscal as localised lockdowns and restrictions have been relaxed.

Citing data released by original equipment manufacturers (OEMs), Ind-Ra said the tractor industry witnessed a sharp rebound in sales volume in June 2021 despite the second COVID wave had impacted sales in April-May 2021 that resulted in average monthly sales dropping to 76 per cent of the monthly sales achieved in the fourth quarter of the financial year 2020-21.

However, it said given that the first quarter is generally a critical quarter with seasonally higher sales of around 33 per cent, especially in May and June for land preparation for the Kharif season, the sales lost are unlikely to be recovered in the subsequent part of the year. It further said tractor purchase may be deferred in favour of saving for/ incurring higher medical expenses amid the anticipation of a third covid wave.

The CNX Nifty is currently trading at 15680.85, down by 47.05 points or 0.30% after trading in a range of 15632.75 and 15730.85. There were 17 stocks advancing against 32 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.38%, Tata Steel up by 1.96%, Divi's Lab up by 1.24%, Adani Ports & SEZ up by 1.24% and ONGC up by 1.03%. On the flip side, Bajaj Auto down by 1.91%, TCS down by 1.23%, Wipro down by 1.21%, Shree Cement down by 1.09% and Axis Bank down by 1.08% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 175.72 points or 0.62% to 27,942.31, Taiwan Weighted fell 211.63 points or 1.18% to 17,654.46, KOSPI declined 52.47 points or 1.61% to 3,200.21, Jakarta Composite lost 0.93 points or 0.02% to 6,038.97 and Shanghai Composite was down by 24.34 points or 0.69% to 3,501.16. On the other hand, Straits Times rose 12.60 points or 0.41% to 3,120.19 and Hang Seng gained 190.02 points or 0.70% to 27,343.15.