Benchmarks turn red, trade with marginal losses in morning deals

Indian equity benchmarks erased initial gains and have turned red to trade with marginal losses in morning deals, on weak global cues. Traders turned cautious with a private report warning that with the delayed monsoon, there is no scope for complacency on inflation even though official data for May has shown a cool-off. It expects the average Consumer Price Inflation (CPI) for FY24 to come to 5.2 per cent against the 5.1 per cent estimate of the Reserve Bank of India. Some concern also came as the Reserve Bank of India’s statement that India’s forex reserves dropped by $1.318 billion to $593.749 billion for the week ended June 9. However, losses were limited as some support came with the Finance Ministry stating that net direct tax collection till June 17 this fiscal rose by 11.18 per cent to Rs 3.80 lakh crore on higher advance tax mop up. The Advance Tax collections for the April-June quarter of 2023-24 stood at Rs 1,16,776 crore as of June 17, reflecting a growth of 13.70 per cent over the same period last fiscal. On the global front, Asian markets are trading lower as investors looked ahead to China's rate decision and U.S. Federal Reserve Chair Jerome Powell's testimonies for clues on the path ahead. 

The BSE Sensex is currently trading at 63283.11, down by 101.47 points or 0.16% after trading in a range of 63263.18 and 63574.69. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Industrials up by 0.98%, Capital Goods up by 0.88%, Consumer Durables up by 0.69%, Healthcare up by 0.63% and Metal up by 0.47%, while Telecom down by 0.88%, Bankex down by 0.69%, Power down by 0.36%, Utilities down by 0.31% and TECK down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.65%, Titan Co up by 1.55%, Bajaj Finserv up by 1.42%, Bajaj Finance up by 1.22% and Sun Pharma up by 0.48%. On the flip side, Kotak Mahindra Bank down by 1.71%, Axis Bank down by 1.19%, ICICI Bank down by 1.05%, NTPC down by 0.98% and Indusind Bank down by 0.97% were the top losers.

Meanwhile, Union Minister Piyush Goyal has said reform measures taken by the government are helping the economy to grow at a faster pace and the world is now looking at India as a major investment destination. 

Goyal said that central schemes like Ujwala and Jal Jeevan Mission are being implemented in every nook and corner of the country, without any discrimination.  He also said that the government has managed the rate of inflation in single digits. 

He stated ‘The government measures are helping to push economic growth and create jobs for youth in the country. We have now become the fifth largest economy of the world, which was earlier a fragile-five economy during the Congress regime.’ He added that the world is looking at India as a major economic destination and the country's economic growth would also help in pushing the world's economy.

The CNX Nifty is currently trading at 18789.45, down by 36.55 points or 0.19% after trading in a range of 18785.80 and 18881.45. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.58%, Larsen & Toubro up by 1.55%, Bajaj Finserv up by 1.29%, Bajaj Finance up by 1.12% and Divi's Lab up by 0.65%. On the flip side, Kotak Mahindra Bank down by 1.68%, Axis Bank down by 1.40%, Adani Enterprises down by 1.39%, ICICI Bank down by 1.10% and Indusind Bank down by 1.07% were the top losers.

All Asian markets are trading lower; Taiwan Weighted lost 17.07 points or 0.1% to 17,271.84, Hang Seng declined 312.68 points or 1.56% to 19,727.69, Shanghai Composite weakened 18.08 points or 0.55% to 3,255.25, KOSPI dropped 23.45 points or 0.89% to 2,602.34, Jakarta Composite plunged 16.27 points or 0.24% to 6,682.28, Straits Times fell 21.45 points or 0.66% to 3,238.58 and Nikkei 225 slipped 400.24 points or 1.19% to 33,305.84.