Markets extend opening losses in early deals ahead of CPI, IIP data

Indian equity benchmarks made a negative start on Friday tracking weakness in global counterparts. Traders were cautious amid worries about economic slowdown and renewed concerns about the turmoil in the US banking sector. Soon, markets extended their losses and were trading lower with cut of around half a percent each in early deals. Investors were looking for directional cues ahead of the April consumer inflation and March IIP data, slated to be released later in the day. There are expectations that April retail inflation to have cooled as rises in food and fuel prices moderated. Investors also await more of financial results from India Inc for domestic cues, with Tata Motors and Cipla, among Nifty 50 constituents, due to post its earnings later in the day. From the broader market, Colgate-Palmolive, HPCL, IGL, Polycab will also announce their quarterly earnings later in the day. 

Meanwhile, foreign institutional investors (FII) bought shares worth Rs 837.21 crore on May 11, provisional data from the National Stock Exchange showed. In stock specific developments, Adani Transmission and Adani Total Gas were trading lower as their exclusion from the MSCI index could lead to outflows. However, M&M inched higher after total production rose 18.5% YoY in April.

The BSE Sensex is currently trading at 61594.71, down by 309.81 points or 0.50% after trading in a range of 61578.15 and 61858.01. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.35%, while Small cap index was down by 0.07%.

The only gaining sectoral indices on the BSE were Auto up by 0.65% and Consumer Durables up by 0.19%, while Metal down by 1.33%, Utilities down by 1.26%, Oil & Gas down by 1.24%, Power down by 1.07% and Energy down by 0.98% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 0.48%, Titan Company up by 0.42%, Tata Motors up by 0.32%, Axis Bank up by 0.27% and Maruti Suzuki up by 0.27%. On the flip side, Larsen & Toubro down by 1.62%, Power Grid down by 1.43%, Tata Steel down by 1.24%, NTPC down by 1.09% and Infosys down by 1.01% were the top losers.

Meanwhile, India's Finance Minister Nirmala Sitharaman has invited Japanese investors and business leaders to explore investment opportunities in the country, saying that New Delhi is easing a lot of restrictions and ensuring overall ease of doing business in its walk towards Amrit Kaal. Indian government describes 'Amrit Kaal', as the 25-year period culminating in the centenary of the country's independence. Interacting with a group of investors and business leaders on the theme of 'Rising Investment Opportunities: Destination India', Sitharaman talked about the initiatives of the Indian government towards building India in 'Amrit Kaal'.

She further said the Union Budget presented by her in February was prepared keeping in mind the needs of the next 25 years to help India become a developed nation by 2047. Referring to 'Amrit Kaal', she said her government's focus is on four ‘Is’. The four Is refer to infrastructure - both physical and digital; investments - domestic and foreign; innovation to enhance use of technology in lives of people; and inclusivity to ensure every citizen benefits from growth.

She also highlighted the government's priority to incentivise and facilitate investments by businesses through the Production Linked Incentive (PLI) scheme, which was initially introduced for 14 sectors and is now being expanded in areas of semi-conductors and solar components. 

Referring to India's commitment to the greening of the economy and the goals under Nationally Determined Contributions, especially in renewable energy, she said that the country has already achieved, with its own funds, 175 GW of solar energy, and now aims to achieve 300 GW by 2030. She also said in the area of renewable energy, India has launched a National Hydrogen Mission.

The CNX Nifty is currently trading at 18209.65, down by 87.35 points or 0.48% after trading in a range of 18194.55 and 18277.30. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 6.77%, Hero MotoCorp up by 0.72%, Britannia Industries up by 0.57%, Mahindra & Mahindra up by 0.54% and Bajaj Auto up by 0.49%. On the flip side, Hindalco down by 2.67%, BPCL down by 2.63%, Divi's Lab down by 2.19%, JSW Steel down by 1.81% and Dr. Reddy's Lab down by 1.59% were the top losers.

Asian markets are trading mostly in red; Jakarta Composite plunged 25.55 points or 0.38% to 6,730.39, Straits Times fell 25.12 points or 0.78% to 3,204.43, Shanghai Composite weakened 13.17 points or 0.4% to 3,296.38, Hang Seng declined 12.17 points or 0.06% to 19,731.62, KOSPI dropped 10.29 points or 0.41% to 2,480.71 and Taiwan Weighted lost 5.4 points or 0.03% to 15,509.24, while Nikkei 225 surged 221.85 points or 0.76% to 29,348.57.