Benchmarks add some losses in morning deals

Indian equity benchmarks added some losses in morning deals, dragged by Banking, FMCG and Consumer Durables stocks. Traders remained cautious with Governor Shaktikanta Das’ statement that the Reserve Bank of India (RBI) is looking closely at banks’ business models to flag any deficiencies that could impact financial resilience, but added that domestic lenders can maintain minimum capital even under severe stress conditions. However, losses remain capped as exchange data showed Foreign Institutional Investors (FIIs) were buyers on Thursday as they bought equities worth Rs 1,652.95 crore. Traders took a note of report that India will soon open a fresh window for inviting new applications for FY24 towards importing gold from the United Arab Emirates (UAE) through an import quota system - tariff rate quota (TRQ) - as a part of the trade agreement between both countries.

On the global front, Asian markets are trading mostly in green as strong corporate earnings lifted sentiment despite lingering worries over economic weakness, while the yen dipped after the Bank of Japan kept rates ultra-low even as it announced a broad review of monetary policy. Back home, tyre industry stocks remained in watch as ratings firm Icra said it expects a revenue growth of 7-9 per cent for Indian tyre industry in the current fiscal (FY24). It pegs the domestic tyre demand growth at 6-8 per cent for FY24, supported by stable growth in the replacement segment and sustained demand momentum in the OEM (Original Equipment Manufacturer) segment.

The BSE Sensex is currently trading at 60567.01, down by 82.37 points or 0.14% after trading in a range of 60507.83 and 60772.61. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 0.57%.

The top gaining sectoral indices on the BSE were Telecom up by 2.45%, Industrials up by 0.67%, Capital Goods up by 0.64%, TECK up by 0.54% and IT up by 0.48%, while Bankex down by 0.53%, FMCG down by 0.37%, Consumer Durables down by 0.36% and Oil & Gas down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 2.71%, Sun Pharma up by 0.92%, Larsen & Toubro up by 0.91%, Reliance Industries up by 0.82% and Bharti Airtel up by 0.79%. On the flip side, Axis Bank down by 2.64%, Bajaj Finserv down by 2.50%, Hindustan Unilever down by 1.81%, Asian Paints down by 1.22% and HCL Technologies down by 1.10% were the top losers.

Meanwhile, Ratings firm Icra has said it expects a revenue growth of 7-9 per cent for Indian tyre industry in the current fiscal (FY24). It pegs the domestic tyre demand growth at 6-8 per cent for FY24, supported by stable growth in the replacement segment and sustained demand momentum in the OEM (Original Equipment Manufacturer) segment.

The rating agency noted that it expects the demand momentum in the OEM segment to continue in FY24 with an estimated growth of 8-10 per cent. It added replacement demand, which forms around two-thirds of tyre demand, is likely to witness mid-single digit growth in FY24.

Icra Assistant Vice President and Sector Head Nithya Debbadi said segment-wise, commercial vehicles shall benefit from the increasing traction in the infrastructure and construction segments. Strong underlying demand and preference for personal mobility will continue to drive passenger vehicles and aid in a recovery in the two-wheeler segments. However, she stated tyre demand remains vulnerable to potential headwinds like adverse monsoons and its impact on rural demand, supply-related issues, general inflation, and further hardening in financing rates.

The CNX Nifty is currently trading at 17910.00, down by 5.05 points or 0.03% after trading in a range of 17885.30 and 17957.95. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.11%, Wipro up by 2.90%, Adani Ports &SEZ up by 2.87%, Apollo Hospital up by 1.68% and HDFC Life Insurance up by 1.14%. On the flip side, Axis Bank down by 2.81%, Bajaj Finserv down by 2.39%, Hindustan Unilever down by 1.81%, ONGC down by 1.16% and Asian Paints down by 1.13% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 247.96 points or 0.86% to 28,705.64, Taiwan Weighted added 133.65 points or 0.86% to 15,545.14, Hang Seng advanced 172.95 points or 0.86% to 20,013.23 and Shanghai Composite strengthened 21.92 points or 0.66% to 3,307.80.

On the flip side, KOSPI dropped 3.98 points or 0.16% to 2,491.83, Jakarta Composite plunged 10.84 points or 0.16% to 6,934.64 and Straits Times fell 5.74 points or 0.18% to 3,276.29.