Bourses continue to trade under selling pressure in late afternoon session

Markets continued to trade under selling pressure in late afternoon session on account of profit booking. Globally investors were worried with further monetary policy tightening by the U.S. Federal Reserve. Traders took  note of report that rating agency ICRA has said securitisation volumes, originated primarily by non-banking financial companies (NBFCs) and housing finance companies (HFCs), are estimated at Rs 53,000 crore in Q1 FY24, reflecting a strong growth of 60% over the Rs 33,000 crore securitised in Q1 FY23. In scrip specific, IdeaForge Technology remained in limelight as it has debuted at Rs 1305.10 on the BSE, up by 633.1 points or 94.21% from its issue price of Rs 672. 

On the global front, All Asian markets were trading lower after another round of strong US data reinforced expectations the Federal Reserve will resume its interest rate hikes as officials wrestle with stubbornly high inflation. European markets were trading lower amid lingering worries about the impact of rising interest rates on economic growth. Adding to the gloomy mood, new data showed German industrial production declined more than expected in May.

The BSE Sensex is currently trading at 65392.06, down by 393.58 points or 0.60% after trading in a range of 65275.66 and 65898.98. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.72%, while Small cap index was down by 0.29%.

The few gaining sectoral indices on the BSE were Consumer Durables up by 0.35%, Energy up by 0.14% and Oil & Gas was up by 0.13%, while Utilities down by 1.25%, Power down by 1.24%, FMCG down by 1.07%, Realty down by 1.01% and Bankex was down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.58%, Mahindra & Mahindra up by 1.22%, TCS up by 0.74% and Reliance Industries up by 0.19%. On the flip side, Power Grid down by 2.55%, Indusind Bank down by 2.06%, Bajaj Finance down by 1.63%, Tech Mahindra down by 1.34% and Hindustan Unilever down by 1.32% were the top losers.

Meanwhile, Union Minister Rajeev Chandrasekhar has said that under the leadership of Prime Minister Narendra Modi, the Government is working closely with Startups, Industry and Academia to create rapidly expanding server & IT Hardware manufacturing ecosystem in India. He said ‘Our ambitions are clear - a $300 billion Electronics industry and a $1 trillion Digital Economy by 2026.’

He also noted that the government will act as an enabler in catalysing India’s IT hardware ecosystem that includes data centres, servers, etc. The PLI scheme for IT hardware has been carefully designed this time with inputs from the industry. Chandrasekhar further said ‘India represents one of the fastest-growing consumer markets in the electronic manufacturing ecosystem as we have digitised our economy, Government and public services at an unprecedented rate.’ Rajeev Chandrasekhar also highlighted India’s significant growth in smartphone manufacturing.

He said ‘We clearly aware of the smartphone success and I can very confidently state that what you’ve seen in the smartphone segment is just the tip of the iceberg. It is clear that we are going to be a significant source of smartphone production and overall ecosystem around the smartphone in the coming decade and the large brands are certainly clear in their mind that they want to make India an expanded presence in India and expand it significantly.’

The CNX Nifty is currently trading at 19379.50, down by 117.80 points or 0.60% after trading in a range of 19345.30 and 19523.60. There were 7 stocks advancing against 41 stocks declining on the index, while 2 stocks remained unchanged. 

The top gainers on Nifty were Titan Company up by 1.50%, Mahindra & Mahindra up by 1.24%, TCS up by 0.76%, SBI Life up by 0.45% and Cipla up by 0.38%. On the flip side, Adani Ports &Special down by 2.92%, Power Grid Corp down by 2.47%, Indusind Bank down by 2.08%, Britannia down by 1.73% and Apollo Hospital down by 1.70% 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 167.35 points or 0.91% to 18,365.70, Taiwan Weighted lost 97.96 points or 0.59% to 16,664.21, Jakarta Composite plunged 30.62 points or 0.46% to 6,726.71, KOSPI dropped 29.58 points or 1.17% to 2,526.71, Straits Times fell 13.89 points or 0.44% to 3,136.54 and Shanghai Composite was down by 8.96 points or 0.28% to 3,196.61.

European markets were trading lower, UK’s FTSE 100 decreased 40.17 points or 0.55% to 7,240.33, France’s CAC fell 5.76 points or 0.08% to 7,076.53 and Germany’s DAX was down by 22.63 points or 0.15% to 15,505.91.