Benchmarks trade flat with positive bias in morning deals

Indian equity benchmarks erased some of their initial gains to trade flat with positive bias in morning deals, as traders remained on sidelines ahead of macro-economic data -- consumer price index (CPI) and Index of Industrial Production (IIP) -- due to be released later in the day. Some concern also came as the International Monetary Fund (IMF) slashed its economic growth forecast for India by 20 basis points (bps) to 5.9 per cent for 2023-24 (FY24), citing lesser scope for pent-up demand due to historical revisions to data. The IMF also projected India’s retail inflation to ease to 4.9 per cent in FY24 from 6.7 per cent in FY23, and the current account deficit to come down to 2.2 per cent of GDP from an estimated 2.6 per cent a year ago. However, traders took some support with continuous foreign fund inflows. Foreign Portfolio Investors (FPIs) further bought equities worth Rs 342.84 crore on Tuesday, according to exchange data.  On the global front, Asian markets are trading mostly in green as markets watched for key inflation data likely to influence the Federal Reserve’s stance on interest rates.

The BSE Sensex is currently trading at 60190.84, up by 33.12 points or 0.06% after trading in a range of 60094.69 and 60313.24. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.23%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.92%, Realty up by 0.66%, Auto up by 0.62%, IT up by 0.20% and Metal up by 0.19%, while FMCG down by 0.34%, PSU down by 0.31%, Telecom down by 0.27%, Oil & Gas down by 0.22% and Utilities down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 0.82%, HDFC Bank up by 0.69%, Asian Paints up by 0.48%, Reliance Industries up by 0.42% and Maruti Suzuki up by 0.39%. On the flip side, Bharti Airtel down by 0.99%, Power Grid Corporation down by 0.97%, Indusind Bank down by 0.93%, ITC down by 0.73% and NTPC down by 0.65% were the top losers.

Meanwhile, rating agency Crisil in its latest report has said that power demand in the country rose 7 per cent on an annual basis in the three months ended March (Q4). The growth in the March quarter was led by increased heating requirement in winter months and robust economic activity.

It mentioned ‘Although the month (March) saw a decline in demand, the fourth quarter of fiscal 2023 witnessed a 7 per cent on-year growth as January and February had seen demand grow 13.7 per cent and 10 per cent, respectively.’

Further, it said that in March, there was a year-on-year decline of 1.3 per cent in power demand. The report also said that despite the drop in power demand in March, prices increased 13 per cent on-year in the fourth quarter of last fiscal.

As per the report, in fiscal 2024, soaring temperature and resilient economic activity are expected to keep power demand growing. It noted on average, the first quarter of this fiscal should see power demand grow 4 per cent on-year on a high base of the previous year. Moreover, it said in fiscal 2024, given predictions of heat waves that will increase usage of air conditioners, fans, and refrigeration units, peak electricity demand should touch a record high.

The CNX Nifty is currently trading at 17750.95, up by 28.65 points or 0.16% after trading in a range of 17717.25 and 17780.00. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 4.85%, Adani Enterprises up by 2.70%, Dr. Reddy's Lab up by 1.45%, Bajaj Auto up by 1.38% and Coal India up by 1.25%. On the flip side, ONGC down by 1.48%, BPCL down by 1.06%, Indusind Bank down by 1.02%, Bharti Airtel down by 0.99% and Power Grid Corporation down by 0.95% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 1.35 points or 0.01% to 15,915.23, Shanghai Composite strengthened 15.61 points or 0.47% to 3,329.18, KOSPI increased 2.3 points or 0.09% to 2,550.16 and Nikkei 225 surged 166.46 points or 0.6% to 28,089.83.

On the flip side, Jakarta Composite plunged 15.96 points or 0.23% to 6,795.35, Straits Times fell 13.2 points or 0.4% to 3,284.63 and Hang Seng declined 121.67 points or 0.6% to 20,363.57.