Benchmarks continue to trade flat in morning deals

Indian equity benchmarks continued to trade flat in morning deals, amid emergence of profit-taking and negative trend in the US markets. Traders overlooked a report by rating agency CRISIL stated that the residential real estate sector across the top six cities of India - Mumbai, Delhi NCR, Bengaluru, Pune, Kolkata, and Hyderabad - is expected to clock 8-10 per cent sales growth this fiscal year. It noted that buoyant residential demand across all segments has resulted in robust sales growth in the past two financial years. Meanwhile, the Securities and Exchange Board of India (Sebi) has restrained 135 entities from accessing the securities market and directed them to impound around Rs 126 crore of wrongful gains from alleged market manipulation done through bulk SMSes. On the global front, Asian markets are trading mostly in red after Fed Chair Powell reiterated that interest rates would need to rise further to contain stubbornly elevated inflation. If the Fed decides to revert to its recent quarter-point increases, the forecast suggests the U.S. central bank will raise rates two more times this year. 

The BSE Sensex is currently trading at 63530.39, up by 7.24 points or 0.01% after trading in a range of 63372.97 and 63601.71. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.03%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Auto up by 0.47%, Industrials up by 0.34%, Bankex up by 0.24%, Oil & Gas up by 0.20% and Capital Goods up by 0.18%, while IT down by 0.84%, TECK down by 0.67%, Power down by 0.34%, PSU down by 0.20% and Utilities down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.10%, HDFC up by 0.72%, ICICI Bank up by 0.63%, HDFC Bank up by 0.56% and ITC up by 0.44%. On the flip side, Tata Steel down by 1.80%, Infosys down by 1.49%, Bajaj Finance down by 1.28%, Power Grid Corporation down by 0.95% and NTPC down by 0.75% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said residential real estate developers across top cities in India are expected to clock 8-10 per cent sales growth in current financial year (FY24) despite rise in interest rates and asset price. Buoyant residential demand across the mid, premium, and luxury segments had resulted in robust sales growth in the past two financial years.

It stated leverage and credit profiles of real estate developers had strengthened too, and should sustain over the medium term. It stated states sales by the 11 large and listed real estate developers rose 50 per cent year-on-year last fiscal in value terms.

According to it, large developers are poised to increase their market share to 30 per cent this fiscal year from 16-17 per cent in fiscal 2020. Aniket Dani, Director, of CRISIL Market Intelligence and Analytics, said healthy economic growth and offices continuing with the hybrid working model is keeping demand for residential real estate steady this fiscal, especially for bigger and premium residences.  

The CNX Nifty is currently trading at 18869.25, up by 12.40 points or 0.07% after trading in a range of 18830.90 and 18886.60. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 1.06%, Eicher Motors up by 1.05%, Mahindra & Mahindra up by 1.05%, Divi's Lab up by 0.92% and Adani Enterprises up by 0.90%. On the flip side, Tata Steel down by 1.80%, Infosys down by 1.37%, Bajaj Finance down by 1.30%, Power Grid Corporation down by 0.99% and Tata Consumer Product down by 0.78% were the top losers.

Asian markets are trading mostly in red; Jakarta Composite plunged 5.54 points or 0.08% to 6,697.09, Straits Times fell 3.33 points or 0.1% to 3,220.33 and Nikkei 225 slipped 172.17 points or 0.51% to 33,402.97, while KOSPI increased 10.04 points or 0.39% to 2,592.67.