Weak trade continues over Dalal Street

Weak trade continued over the Dalal Street in early noon deals, with both Sensex and Nifty trading lower by over a half percent, amid weak cues from other Asian markets along with heavy selling at all sectoral indices except Consumer Durables. Investors await April-June earnings data of Indian companies, expected to pour in starting next week. Traders took a note of private report stating that retail inflation is likely to have remained flat at 4.26 per cent in June compared to May, despite soaring vegetable prices and steady fuel prices. The food and fuel baskets constitute almost 60 per cent of the Consumer Price Index (CPI).

On the global front, Asian markets were trading lower, after Malaysia's central bank left its benchmark rate unchanged on Thursday after lifting it by a half-percentage point in May. The Monetary Policy Committee of Bank Negara Malaysia headed by newly appointed Datuk Abdul Rasheed Ghaffour decided to hold the Overnight Policy Rate at 3.00 percent. At the previous rate-setting in May, the BNM had lifted the interest rate by 50 basis points.

The BSE Sensex is currently trading at 65405.54, down by 380.10 points or 0.58% after trading in a range of 65347.39 and 65898.98. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.79%, while Small cap index was down by 0.40%.

The only gaining sectoral index on the BSE was Consumer Durables up by 0.80%, while Utilities down by 1.49%, Power down by 1.48%, PSU down by 0.96%, Bankex down by 0.83% and Metal down by 0.82% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 2.35%, Mahindra & Mahindra up by 0.36%, Reliance Industries up by 0.21%, Maruti Suzuki up by 0.08% and TCS up by 0.06%. On the flip side, Power Grid Corporation of India down by 2.63%, Indusind Bank down by 1.84%, Bajaj Finance down by 1.64%, Tech Mahindra down by 1.62% and NTPC down by 1.50% were the top losers.

Meanwhile, the Engineering Export Promotion Council (EEPC) India has released a strategy paper, urging the country to pursue new free trade agreements (FTAs) with Latin American and African nations to boost engineering shipments. The paper stressed on the importance of expanding market access and reducing risks associated with economic uncertainties. At present, around 40 countries account for over 87 per cent of India's engineering exports. 

The strategy paper also highlighted the impact of global economic trends on India's engineering shipments. With the world economy expected to slow down this financial year, India must strengthen its presence in Europe by implementing an FTA with the European Union to help expand the current market base, and mitigate the potential downturn in engineering exports. The engineering sector is a significant contributor to India's economy, accounting for 25 per cent of the country's total exports, and is also the largest foreign exchange earner.

EEPC India Chairman Arun Kumar Garodia said ‘it is quite crucial for India to explore new markets, especially in Latin American and African countries. Many of our competitors have already established FTAs with these countries and as a result, are having a competitive edge over us. FTAs with these countries can level the playing field, ensure fair market access and expand our exports.’

The CNX Nifty is currently trading at 19374.70, down by 122.60 points or 0.63% after trading in a range of 19362.45 and 19523.60. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 2.27%, HDFC Life Insurance up by 0.73%, Mahindra & Mahindra up by 0.34%, SBI Life Insurance up by 0.32% and Reliance Industries up by 0.20%. On the flip side, Power Grid Corporation of India by 2.57%, Adani Ports and Special Economic Zone down by 2.47%, Indusind Bank down by 1.96%, Hindalco down by 1.82% and Tech Mahindra down by 1.72% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 384.6 points or 1.19% to 32,388.42, Hang Seng declined 142.5 points or 0.77% to 18,390.55, Taiwan Weighted lost 97.96 points or 0.59% to 16,664.21, KOSPI dropped 29.58 points or 1.17% to 2,526.71, Jakarta Composite plunged 26.93 points or 0.4% to 6,730.40, Straits Times fell 10.67 points or 0.34% to 3,139.76 and Shanghai Composite weakened 7.84 points or 0.24% to 3,197.73.