Benchmarks continue to trade in red in morning deals

Indian equity benchmarks continued to trade in red in morning deals, dragged down by index major HCL Technologies, Wipro and Asian Paints. Traders remained cautious as provisional data available on the NSE showed that foreign institutional investors (FII) have net sold shares worth Rs 1,662.63 crore on January 12, 2023. Some concern also came as a private report stated that the Centre as well as state governments are likely to budget for higher market borrowings next fiscal even though the Union Budget may peg a lower-than-expected fiscal deficit at 5.8 per cent of GDP. However, losses remain capped as some support came with data showing that India's industrial growth, as per the Index of Industrial Production (IIP), accelerated to 7.1 percent in November 2022. IIP growth returned to positive territory in November after it had contracted by 4 percent in October - the industry's worst performance in 26 months. On the global front, Asian markets are trading mostly in green after data showed inflation eased in the world's largest economy, taking away some of the concerns about steep hikes in interest rates.

The BSE Sensex is currently trading at 59740.17, down by 217.86 points or 0.36% after trading in a range of 59628.43 and 60044.96. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.41%, while Small cap index was down by 0.03%.

The top gaining sectoral indices on the BSE were Metal up by 0.85%, PSU up by 0.30%, Power up by 0.08%, Utilities up by 0.02% and Auto up by 0.01%, while IT down by 0.87%, Capital Goods down by 0.82%, TECK down by 0.66%, Consumer Durables down by 0.51% and Healthcare down by 0.49% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.08%, Ultratech Cement up by 0.93%, Mahindra & Mahindra up by 0.89%, Indusind Bank up by 0.60% and Maruti Suzuki up by 0.41%. On the flip side, HCL Technologies down by 1.95%, Wipro down by 1.61%, Asian Paints down by 1.44%, Tech Mahindra down by 1.36% and Larsen & Toubro down by 1.28% were the top losers.

Meanwhile, Icra Ratings in its latest report has said that the Centre as well as state governments are likely to budget for higher market borrowings next fiscal (FY24) even though the Union Budget may peg a lower-than-expected fiscal deficit at 5.8 per cent of gross domestic product (GDP).

It anticipated that higher redemptions will lead to gross market borrowings of the Centre and states to rise to Rs 14.8 lakh crore and Rs 24.4 lakh crore, respectively, in FY24 from Rs 14.1 lakh crore and Rs 22.1 lakh crore, respectively, in FY23. Moreover, it said the Centre is expected to peg its FY24 fiscal deficit at 5.8 per cent of the GDP, a healthy moderation from 6.4 per cent of GDP projected for FY23.

According to Aditi Nayar, chief economist at the agency, with a global growth slowdown looming large, Budget 2024 needs to focus on sustaining the domestic growth momentum, while at the same time demonstrating a continued commitment towards fiscal consolidation in addition to limiting the rise in market borrowings. She also expects the forthcoming budget enhancing the Central capital expenditure to Rs 8.5-9 lakh crore.

The CNX Nifty is currently trading at 17801.75, down by 56.45 points or 0.32% after trading in a range of 17774.25 and 17872.60. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.07%, HDFC Life Insurance up by 1.07%, Ultratech Cement up by 0.95%, Mahindra & Mahindra up by 0.91% and ONGC up by 0.68%. On the flip side, HCL Technologies down by 1.84%, Wipro down by 1.70%, Apollo Hospital down by 1.55%, Asian Paints down by 1.40% and Tech Mahindra down by 1.40% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted strengthened 106.05 points or 0.72% to 14,837.69, Hang Seng increased 35.32 points or 0.16% to 21,549.42, KOSPI rose 20.43 points or 0.86% to 2,385.53, Shanghai Composite gained 17.64 points or 0.56% to 3,181.09 and Straits Times advanced 8.15 points or 0.25% to 3,275.93.

On the flip side, Jakarta Composite lost 17.71 points or 0.27% to 6,612.22 and Nikkei 225 slipped 294.31 points or 1.11% to 26,155.51.