Bourses trade marginally lower in late afternoon session

In highly volatile trading session, the Indian equity benchmarks continued to trade marginally lower in late afternoon session. selling in banking counters dragged the markets lower. Sentiments remained downbeat after India’s services sector activity eased to a three-month low in June. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 58.5 in June from 61.2 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.4 in June as against 61.6 in May. Traders took note of report that Fitch Ratings has said that Indian oil marketing companies' (OMCs) marketing segment to turn profitable from the financial year ending March 2024 (FY24) as crude oil prices fall to Fitch's assumption of $78.8 per barrel, following large losses in FY23 due to high crude prices and unchanged retail fuel prices.

On the global front, Asian markets were trading mostly in red after new data showed China's economy continued to struggle in June. European markets were trading lower as fresh data pointing to China's faltering economic recovery as well as slowing services sector activity in the euro zone stoked concerns about a sharp hit to global growth.

The BSE Sensex is currently trading at 65389.52, down by 89.53 points or 0.14% after trading in a range of 65301.63 and 65584.33. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.53%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were Auto up by 1.33%, FMCG up by 1.32%, Oil & Gas up by 1.04%, Energy up by 0.75% and PSU was up by 0.73%, while Telecom down by 0.23%, Bankex down by 0.20%, Realty down by 0.04% and Metal was down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.86%, Indusind Bank up by 2.36%, Tech Mahindra up by 2.34%, ITC up by 1.73% and Hindustan Unilever up by 1.63%. On the flip side, HDFC Bank down by 3.00%, HDFC down by 2.94%, Bajaj Finserv down by 0.99%, Wipro down by 0.62% and Bajaj Finance down by 0.54% were the top losers.

Meanwhile, India’s services sector activity eased to a three-month low in June but remained above the neutral level of 50.0, amid stronger increase in new business volumes. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index fell at 58.5 in June from 61.2 in May. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- eased to 59.4 in June as against 61.6 in May.

The report further noted that there was a sharp and quicker expansion in intakes of new business at the end of the first fiscal quarter. Positive demand trends, advertising and favourable market conditions were among the reasons for the latest upturn in sales. There was also an increase in new export business during June. The rise was the fifth in successive months, but modest and slower than in May.

The data report also showed a notable increase in prices charged for the provision of services in India. The rate of inflation was marked and the strongest seen in just under six years. The pass-through of greater input and staff costs to clients was the primary factor highlighted by firms for the latest upturn in charges. Although input costs continued to increase in June, the overall rate of inflation softened since May and broadly converged towards its long-run average.

The CNX Nifty is currently trading at 19377.65, down by 11.35 points or 0.06% after trading in a range of 19344.70 and 19421.60. There were 28 stocks advancing against 21 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Hero MotoCorp up by 4.40%, Divi's Lab up by 4.30%, HDFC Life Insurance up by 3.23%, Maruti Suzuki up by 2.90% and Bajaj Auto up by 2.86%. On the flip side, HDFC down by 3.18%, HDFC Bank down by 3.10%, Tata Consumer down by 1.35%, Hindalco down by 1.23% and UPL down by 1.06% were the top losers.

Asian markets were trading mostly in red, Hang Seng declined 305.3 points or 1.6% to 19,110.38, Taiwan Weighted lost 84.34 points or 0.49% to 17,056.43, Nikkei 225 slipped 83.82 points or 0.25% to 33,338.70, Shanghai Composite weakened 22.4 points or 0.7% to 3,222.95, Straits Times fell 17.9 points or 0.56% to 3,185.87 and KOSPI was down by 14.31 points or 0.55% to 2,579.00. On the flip side, Jakarta Composite was up by 26.73 points or 0.4% to 6,708.48.

European markets were trading lower, UK’s FTSE 100 decreased 37.81 points or 0.51% to 7,481.91, France’s CAC fell 36.83 points or 0.5% to 7,333.10 and Germany’s DAX was down by 84.88 points or 0.53% to 15,954.29.