Domestic equity indices trade flat with negative bias

Domestic equity indices were trading flat with negative bias in late morning deals despite firm cues from global markets. Meanwhile, broader indices on the BSE were trading with marginal gains. There was cautiousness in the markets with a private report stating that India’s growth is likely to disappoint at 4.5% in 2023 due to global spillovers, prompting 75 basis point of rate cuts in second half of 2023. Besides, the Reserve Bank said India's forex reserves declined by $1.268 billion to $561.583 billion for the week ended January 6. Meanwhile, traders took a note of report that Union Education Minister Dharmendra Pradhan said India has to become a manufacturing economy for achieving the 'Make in India' goal. He said India currently has the momentum to achieve it. On the sectoral front, traders were seen pilling up position in IT, TECK, Utilities, Power and PSU, while selling was witnessed in Auto, Metal, Oil & Gas, Energy and Telecom.

On the global front, Asian markets were mostly trading in green following the positive cues from US markets on Friday. However, the Japanese market was significantly lower in choppy trading on Monday, amid speculation that the Bank of Japan will shift from its ultra-easy policy at its monthly monetary policy meeting on Wednesday. Back home, in stock specific development, Sula Vineyards soared after the company recorded highest-ever quarterly gross billings overall, both for its own brands as well as wine tourism revenues during October-December quarter (Q3FY23).

The BSE Sensex is currently trading at 60260.79, down by 0.39 points or after trading in a range of 60220.69 and 60586.77. There were 12 stocks advancing against 18 stocks declining on the index.

 The broader indices were trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index up by 0.20%.

The top gaining sectoral indices on the BSE were IT up by 1.20%, TECK up by 0.94%, Utilities up by 0.62%, Power up by 0.50% and PSU up by 0.12%, while Auto down by 0.89%, Metal down by 0.81%, Oil & Gas down by 0.56%, Energy down by 0.53% and Telecom down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.32%, HCL up by 1.53%, Infosys up by 1.38%, Wipro up by 1.13% and Ultratech Cement up by 0.85%. On the flip side, NTPC down by 1.52%, Mahindra & Mahindra down by 1.49%, Maruti Suzuki down by 1.08%, Axis Bank down by 1.07% and TCS down by 0.84% were the top losers.

Meanwhile, the automobile industry body Society of Indian Automobile Manufacturers has said passenger vehicle wholesales rose 23 per cent year-on-year in the December 2022 quarter of current financial year (Q3FY23), aided by robust demand in the festive period. It stated the total passenger vehicle dispatches from the companies to dealers in the third quarter rose to 9,34,955 units compared to 7,61,124 units in the same period of the previous financial year. In December, passenger vehicle sales witnessed an increase of 7 per cent at 2,35,309 units against 2,19,421 units in the year-ago month.

Moreover, it mentioned the total commercial vehicles increased by 17 per cent year-on-year to 2,27,111 units in the third quarter, while two-wheelers saw an increase of 6 per cent at 38,59,030 units. Similarly, three-wheeler dispatches rose to 1,38,511 units from 82,547 units in the October-December period of last fiscal. The total sales during the quarter increased to 51,59,758 units from 46,68,562 units in the year-ago period.

Commenting on the three-month sales data, Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said segments like commercial vehicles, three-wheelers and two-wheelers have also witnessed an increase in wholesales during the period under review. He noted festive season has helped in returning good sales numbers for all the segments. However, weakness in rural demand continues, as high food inflation and increased financing cost is impacting the rural market.

The CNX Nifty is currently trading at 17937.75, down by 18.85 points or 0.10% after trading in a range of 17924.40 and 18049.65. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.34%, HCL up by 1.55%, Infosys up by 1.35%, Wipro up by 1.08% and Ultratech Cement up by 0.82%. On the flip side, Adani Enterprises down by 2.32%, Eicher Motors down by 1.48%, NTPC down by 1.46%, Mahindra & Mahindra down by 1.45% and Cipla down by 1.28% were the top losers.

Asian markets were trading mostly in green; Hang Seng surged 56.53 points or 0.26% to 21,789.01, Taiwan Weighted rose 89.18 points or 0.57% to 14,909.22, KOSPI advanced 17.74 points or 0.74% to 2,403.83, Shanghai Composite was up by 45.82 points or 1.43% to 3,241.13 and Jakarta Composite was down by 10.66 points or 0.16% to 6,652.49. On the other hand, Nikkei 225 declined 295.58 points or 1.14% to 25,814.06 and Straits Times lost 9.34 points or 0.26% to 3,285.24.