Sensex, Nifty remain under grip of bears

Indian equity indices remained under a grip of bears in early afternoon deals, with both Sensex and Nifty trading near their intraday low points, impacted by selling at IT and TECK counters, despite positive cues from other Asian markets. Traders got cautious amid a private report stating that the changing inflation dynamics mean that the RBI (Reserve Bank of India) will likely raise its 2023-24 inflation forecast at the August 10 policy meeting, where it expects a hawkish hold.  Besides, another reports stated that vegetable prices in India are set to stay higher for longer, as erratic monsoon rains delayed planting and damaged ripening crops.

On the global front, Asian markets were trading mostly in green, even after industrial output in South Korea was down a seasonally adjusted 1.0 percent on month in June. That missed expectations for a decline of 0.3 percent following the 3.0 percent drop in May. On a yearly basis, industrial production sank 5.6 percent - also shy of expectations for a decline of 5.5 percent after falling a downwardly revised 7.6 percent in the previous month (originally -7.3 percent). The index of all-industry production was up 0.1 percent on month and 1.1 percent on year.

The BSE Sensex is currently trading at 65950.15, down by 316.67 points or 0.48% after trading in a range of 65894.62 and 66351.22. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.29%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Utilities up by 2.58%, Power up by 2.48%, Realty up by 1.61%, PSU up by 0.73% and Capital Goods up by 0.53%, while IT down by 0.99%, TECK down by 0.99%, Bankex down by 0.63%, Consumer Durables down by 0.60% and Telecom down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation of India up by 3.51%, NTPC up by 3.29%, Mahindra & Mahindra up by 1.38%, JSW Steel up by 0.64% and Nestle up by 0.48%. On the flip side, Bajaj Finserv down by 2.37%, TCS down by 1.65%, Tata Motors down by 1.64%, Maruti Suzuki down by 1.61% and HCL Technologies down by 1.60% were the top losers.

Meanwhile, Union Minister for Power, New and Renewable Energy RK Singh has said that the total outstanding dues of states towards power generating companies (gencos) on PRAAPTI Portal, which were at Rs 1,20,540 crore as on June 3, 2022, have been reduced to Rs 61,025 crore as on July 24, 2023 with the timely payment of 12 equated monthly instalments (EMIs). 

Singh stated that there has been significant improvement in the realisation of dues of power generating companies post implementation of Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, promulgated on June 3, 2022. He also said distribution companies are also paying their current dues in time to avoid regulations under the rule. 

On coal supplies, the minister said that to address the issues of coal supplies to the power sector, an Inter-Ministerial Sub Group meet regularly to take various operational decisions to enhance the supply of coal to thermal power plants as well as for meeting any contingent situations relating to power sector, including to alleviate critical coal stock position in power plants. Besides, an inter-ministerial Secretary-level meeting is held regularly to monitor coal stocks. He added that the government has issued revised coal stocking norms, which mandate the power plants to maintain sufficient stock at all times to meet any contingent situation.

The CNX Nifty is currently trading at 19578.55, down by 81.35 points or 0.41% after trading in a range of 19564.70 and 19695.90. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation of India up by 3.41%, NTPC up by 2.90%, Dr Reddy's Laboratories up by 1.66%, ONGC up by 1.55% and Mahindra & Mahindra up by 1.30%. On the flip side, Bajaj Finserv down by 2.48%, TCS down by 1.82%, Maruti Suzuki down by 1.72%, HCL Technologies down by 1.63% and Titan Company down by 1.54% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 256.19 points or 1.29% to 19,895.30, Shanghai Composite strengthened 58.59 points or 1.79% to 3,275.26, Taiwan Weighted added 51.11 points or 0.3% to 17,292.93, Straits Times rose 28.96 points or 0.86% to 3,366.38 and KOSPI increased 4.51 points or 0.17% to 2,608.32, while Jakarta Composite plunged 20.04 points or 0.29% to 6,876.62 and Nikkei 225 slipped 131.93 points or 0.4% to 32,759.23.