Benchmarks remain in red terrain in morning deals

Indian equity benchmarks remained in red terrain in morning deals, amid negative sentiment in the global markets. Traders remained cautious as exchange data showing that foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 319.23 crore. Traders overlooked a private report stated that India is likely to become a $26-trillion economy in 100th year of its Independence in 2047 with per capita GDP growing six times from current level to over $15,000 during the period. Sectorally, Auto industry stocks remained in watch as a report by rating agency ICRA stated that the domestic automotive industry is expected to grow at high single-digit levels in 2023-24. According to the report, the demand for the passenger vehicles segment is expected to grow at 6-9 per cent, commercial vehicles by 7-10 per cent, two-wheelers by 6-9 per cent and tractors by 4-6 per cent in FY24. On the global front, Asian markets are trading mixed as weak U.S. data rekindled recession worries and two Fed officials hinted that further rate hikes are warranted to keep inflation under control. 

The BSE Sensex is currently trading at 60843.89, down by 201.85 points or 0.33% after trading in a range of 60716.55 and 60970.56. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.11%, while Small cap index was down by 0.03%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.25%, Energy up by 0.11%, Metal up by 0.09% and PSU up by 0.08%, while Utilities down by 1.18%, Consumer Durables down by 1.13%, Power down by 1.06%, Telecom down by 0.67% and TECK down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 0.70%, Tata Steel up by 0.45%, Power Grid Corporation up by 0.41%, Bajaj Finance up by 0.39% and Sun Pharma up by 0.13%. On the flip side, Titan Company down by 1.71%, Hindustan Unilever down by 1.19%, Kotak Mahindra Bank down by 1.13%, Tata Motors down by 1.09% and Bharti Airtel down by 0.98% were the top losers.

Meanwhile, domestic credit ratings agency ICRA in its latest report has said the domestic automotive industry has seen a healthy revival in the current fiscal, aided by a recovery in economic activities and increased mobility, and is expected to grow at high single-digit levels across segments in FY24. It stated, category-wise, passenger and commercial vehicle volumes could see a growth of 6-9 per cent and 7-10 per cent, respectively, the two-wheeler and tractors are estimated to grow at 6-9 per cent and 4-6 per cent, respectively, in the financial year starting April 2023.

According to the report, the demand sentiments for a majority of the automotive segments such as passenger vehicles, commercial vehicles and tractors have remained healthy, aiding in the improved off-take for the industry participants. However, it said the two-wheeler industry continues to struggle with industry volumes still below the pre-Covid peak levels; even as improved off-take in the recent festive and marriage season has provided optimism, a sustained recovery in demand sentiments is yet to be seen.

It mentioned a similar trend of relatively weak off-take has been seen for the entry-level car segment, implying that the purchasing power of the consumers at the bottom end of the pyramid has been eroded to an extent over the past few years by the significant rise in vehicle prices (a result of price hikes to combat inflationary pressures and meet stringent regulatory requirements) and disruptions caused by the pandemic.

The CNX Nifty is currently trading at 18100.60, down by 64.75 points or 0.36% after trading in a range of 18063.75 and 18139.70. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were UPL up by 1.52%, HDFC Life Insurance up by 0.73%, Axis Bank up by 0.69%, Tata Steel up by 0.61% and ONGC up by 0.60%. On the flip side, Adani Enterprises down by 3.43%, Titan Company down by 1.72%, Hindalco down by 1.30%, Hindustan Unilever down by 1.21% and Kotak Mahindra Bank down by 1.18% were the top losers.

Asian markets are trading mixed; Shanghai Composite strengthened 4.19 points or 0.13% to 3,228.60, KOSPI increased 6.55 points or 0.28% to 2,374.87 and Jakarta Composite gained 36.19 points or 0.53% to 6,801.98. On the flip side, Straits Times fell 12.68 points or 0.39% to 3,276.87, Nikkei 225 slipped 377.03 points or 1.41% to 26,414.09 and Hang Seng declined 5.93 points or 0.03% to 21,672.07.