Markets trade near neutral lines with negative bias in late afternoon session

Indian equity markets traded near neutral lines with negative bias in late afternoon session. Weakness in select Bankex and FMCG too dragged key gauges lower, while buying in Utilities and Power stocks helped markets to trade near neutral lines. The broader indices, the BSE Mid cap index and Small cap index were trading mixed. Traders took note that bipartisan group of American state governors and top officials have vouched for strong bilateral ties with India and pitched for investment from the Indian corporate sector who they said not only brings foreign direct investment but also skills and creates local jobs in the US. Sector wise, real estate sector remain in focused, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report on ‘India’s residential real estate sector’ has said that the housing market growth momentum is likely to continue on the back of a strong demand in FY23. 

On the global front, Asian markets were trading mostly in red as investors fretted over high inflation and the possibility of a recession. Risk-off sentiment boosted the safe-haven dollar while crude prices declined after a three-day rally. European markets were trading lower with investors looking ahead to a meeting of major central bank heads for clues on policy outlook.

The BSE Sensex is currently trading at 53062.13, down by 115.32 points or 0.22% after trading in a range of 52612.68 and 53244.84. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.63%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Utilities up by 1.98%, Power up by 1.97%, Energy up by 0.68%, Oil & Gas up by 0.32% and Auto was up by 0.28%, while Bankex down by 0.86%, FMCG down by 0.73%, Healthcare down by 0.39%, IT down by 0.32% and Telecom was down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.63%, Reliance Industries up by 2.37%, Power Grid up by 2.07%, Ultratech Cement up by 0.72% and Sun Pharma up by 0.56%. On the flip side, Indusind Bank down by 2.36%, Hindustan Unilever down by 2.34%, Axis Bank down by 1.85%, Bajaj Finserv down by 1.50% and Titan Company down by 1.36% were the top losers.

Meanwhile, maintaining the sector outlook as improving for FY23 as well, Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report on ‘India’s residential real estate sector’ has said that the housing market growth momentum is likely to continue on the back of a strong demand in FY23.

The rating agency further noted that Grade I players are likely to generate strong sales in FY23 due to the ongoing consolidation in the market. According to the report, there has been formalisation of the sector with Grade I and strong local players gaining market share and brands winning the customer preference, as home buyers remain wary of under-construction projects by Grade II developers.

Ind-Ra also said that the formalisation of the sector is driving fringe players to partner with Grade I developers for project execution and sales as they command the market. The agency further added that Grade I players are expected to register double-digit sales growth of around 15% yoy in FY23.

The CNX Nifty is currently trading at 15824.20, down by 26.00 points or 0.16% after trading in a range of 15687.80 and 15861.60. There were 17 stocks advancing against 32 stocks declining on the index, while 1 stock remain unchanged.

The top gainers on Nifty were NTPC up by 2.63%, Reliance Industries up by 2.46%, Power Grid up by 2.12%, Shree Cement up by 1.24% and Eicher Motors up by 0.86%. On the flip side, HDFC Life Insurance down by 3.65%, Hindustan Unilever down by 2.30%, Indusind Bank down by 2.27%, UPL down by 2.04% and Axis Bank down by 1.91% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 422.08 points or 1.88% to 21,996.89, Nikkei 225 slipped 244.87 points or 0.91% to 26,804.60, Taiwan Weighted dropped 199.79 points or 1.29% to 15,240.13, Jakarta Composite lost 54.11 points or 0.77% to 6,942.35, Shanghai Composite declined 47.69 points or 1.4% to 3,361.52 and KOSPI was down by 44.10 points or 1.82% to 2,377.99. On the flip side, Straits Times was up by 4.44 points or 0.14% to 3,144.65.

European markets were trading lower, UK’s FTSE 100 decreased 35.96 points or 0.49% to 7,287.45, France’s CAC decreased 37.70 points or 0.62% to 6,048.32 and Germany’s DAX was down by 161.50 points or 1.22% to 13,070.32.