Benchmarks remain in red in morning deals

Indian equity benchmarks remained in red in morning deals, amid weak global market trends and continuous foreign fund outflows. Traders remained cautious as the commerce ministry in its latest data showing that India’s merchandise exports contracted by 15.88 per cent, the sixth month in a row, to $32.25 Billion in July 2023 as compared to $38.34 Billion in July 2022 due to a global slowdown and fall in shipments of key sectors like petroleum, gems and jewellery. Some concern also came as Consumer Price Index (CPI) Inflation data showing that retail inflation reached 7.44 per cent in July. The retail inflation has crossed RBI’s tolerance band of 2-6 per cent for the first time since February 2023. July’s CPI inflation of 7.44 per cent is also the highest number recorded since the high of April 2022 when retail inflation touched 7.79 per cent.  On the global front, All Asian markets are trading lower as investors fretted about the Chinese economy, higher U.S. interest rates and the health of the U.S. banking sector. 

The BSE Sensex is currently trading at 65301.12, down by 100.80 points or 0.15% after trading in a range of 65032.89 and 65349.81. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.04%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were IT up by 0.90%, Realty up by 0.63%, TECK up by 0.56%, Industrials up by 0.54% and FMCG up by 0.37%, while Metal down by 0.78%, Consumer Durables down by 0.74%, Bankex down by 0.52%, Telecom down by 0.34% and Auto down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.48%, Tech Mahindra up by 1.26%, Wipro up by 1.01%, HCL Technologies up by 1.01% and ITC up by 0.69%. On the flip side, Indusind Bank down by 1.34%, Tata Steel down by 1.31%, Bajaj Finance down by 0.95%, Bajaj Finserv down by 0.86% and HDFC Bank down by 0.86% were the top losers.

Meanwhile, breaching the Reserve Bank of India’s (RBI’s) comfort zone, the retail inflation measured in Consumer Price Index (CPI) spiked to a 15-month high of 7.44 per cent in July, much higher than 4.87 per cent in June, as tomatoes, vegetables and other food items turned costlier. The inflation overshoots the RBI’s comfort level for the first time in the current fiscal. The RBI has the mandate to keep retail inflation in the range of 2 to 6 per cent and after remaining above the upper limit for most of the 2022-23 financial year. Retail inflation stood at 6.71 per cent in July 2022 and the previous high was recorded at 7.79 per cent in April 2022.

The CPI-based inflation in the food basket was at 11.51 per cent in July, significantly up from 4.55 per cent in the preceding month, and 6.69 per cent in July 2022. The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that Rural CPI (General) in July 2023 stood at 7.63 per cent as against 4.78 per cent in June. The Urban CPI (General) stood at 7.20 per cent in July as against 4.96 per cent in June. The index value for Rural, Urban and Combined CPI (General) stood at 187.6, 184.7 and 186.3 respectively, in July 2023.

In July, the annual inflation in the vegetables basket was at 37.44 per cent, spices at 21.63 per cent, pulses and products at 13.27 per cent, and cereals and products at 13.04 per cent. However, the rate of price rise in oils and fats segment declined 16.8 per cent. The inflation in meat and fish, egg and fruits was in lower single digit. NSO collects the price data from selected 1,114 urban markets and 1,181 villages covering all States and Union Territories.

The CNX Nifty is currently trading at 19387.70, down by 46.85 points or 0.24% after trading in a range of 19317.20 and 19400.70. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Infosys up by 1.54%, Tech Mahindra up by 1.36%, HCL Technologies up by 1.19%, Wipro up by 0.88% and BPCL up by 0.66%. On the flip side, Hindalco down by 2.45%, Adani Ports & SEZ down by 1.68%, HDFC Life Insurance down by 1.59%, Divi's Lab down by 1.48% and Indusind Bank down by 1.43% were the top losers.

All Asian markets are trading lower; Taiwan Weighted lost 82.31 points or 0.5% to 16,372.49, Hang Seng declined 257.89 points or 1.41% to 18,323.22, Shanghai Composite weakened 7.86 points or 0.25% to 3,168.32, KOSPI dropped 40.23 points or 1.59% to 2,530.64, Jakarta Composite plunged 43.84 points or 0.64% to 6,871.26, Straits Times fell 17.18 points or 0.53% to 3,215.56 and Nikkei 225 slipped 399.68 points or 1.26% to 31,839.21.