Bourses trim losses in late afternoon session

Indian equity markets trimmed their losses but continued to trade below neutral lines in late afternoon session. The broader indices, the BSE Mid cap index and Small cap index were trading mixed. Sentiments got some support after growth of eight core infrastructure industries grew to 13-month high of 18.1 per cent in May 2022, led by healthy growth in coal, crude oil, fertilisers, cement and electricity production. However, there were cautiousness in the markets as rating agency Crisil lowered its real GDP growth forecast for India to 7.3 percent in FY23 from 7.8 percent estimated earlier. It attributed the downward revision to higher oil prices, slowing of export demand, and high inflation. Besides, the government slapped Rs 6 per litre tax on exports of petrol and ATF and Rs 13 per litre on exports of diesel. The government also slapped a Rs 23,230 per tonne additional tax on domestically produced crude oil to take away windfall gains accruing to producers from high international oil prices.

On the global front, Asian markets were trading mostly in red amid growth worries, as a slew of surveys showed regional manufacturing activity stalled in June and many companies were hit by supply disruptions caused by China's strict COVID-19 lockdowns. European markets were trading mostly in green after the German manufacturing PMI came in at 52.0 in June, in line with expectations.

The BSE Sensex is currently trading at 52703.21, down by 315.73 points or 0.60% after trading in a range of 52094.25 and 52863.34. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.09%, while Small cap index was down by 0.27%.

The top gaining sectoral indices on the BSE were FMCG up by 1.79%, Realty up by 1.21%, Healthcare up by 0.34%, Consumer Discretionary up by 0.28% and Basic Materials was up by 0.23%, while Energy down by 4.69%, Oil & Gas down by 3.78%, PSU down by 1.75%, Utilities down by 0.83% and Telecom was down by 0.81% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.15%, Bajaj Finance up by 2.98%, ITC up by 2.60%, Asian Paints up by 2.51% and Hindustan Unilever up by 1.80%. On the flip side, Reliance Industries down by 8.30%, Power Grid down by 2.48%, NTPC down by 1.96%, Bharti Airtel down by 1.71% and Maruti Suzuki down by 1.22% were the top losers.

Meanwhile, Indian manufacturing activity eased in the month of June, as growth of total sales and production eased amid intense price pressures. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 53.9 in June from 54.6 in May.

The report noted that factory orders and production rose for the twelfth straight month in June, but in both cases the rates of expansion eased to nine-month lows. Besides, new export orders rose for the third month running in June. The increase was strong by historical standards, despite easing from May's 11-year high.

On the inflation front, rates of purchase price and output charge inflation retreated to three-month lows, but remained above their respective long-run averages. Inflation concerns continued to dampen business confidence, with sentiment slipping to a 27-month low.

As per the report, employment rose for the fourth successive month, albeit at a slight pace that was broadly in line with those seen over this period. Job creation restricted backlog growth, which increased at a marginal pace that was the slowest in three months.

The CNX Nifty is currently trading at 15707.55, down by 72.70 points or 0.46% after trading in a range of 15511.05 and 15719.95. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.97%, Bajaj Finance up by 2.92%, Cipla up by 2.73%, ITC up by 2.61% and Britannia up by 2.54%. On the flip side, ONGC down by 13.16%, Reliance Industries down by 8.50%, Bajaj Auto down by 2.55%, Power Grid down by 2.41% and Coal India down by 2.32% were the top losers.

Asian markets were trading mostly in red, Taiwan Weighted dropped 482.65 points or 3.26% to 14,343.08, Nikkei 225 slipped 457.42 points or 1.73% to 25,935.62, Jakarta Composite lost 117.25 points or 1.7% to 6,794.33, KOSPI fell 27.22 points or 1.17% to 2,305.42 and Shanghai Composite was down by 10.98 points or 0.32% to 3,387.64. On the flip side, Straits Times was up by 0.19 points or 0.01% to 3,102.40.

European markets were trading mostly in green, France’s CAC increased 20.33 points or 0.34% to 5,943.19 and Germany’s DAX was up by 32.56 points or 0.25% to 12,816.33. On the flip side, UK’s FTSE 100 was down by 6.41 points or 0.09% to 7,162.87.