Markets trade slightly in red in late morning deals

Domestic equity markets erased early gains and were trading lower with marginal losses in late morning deals, following a weakness in other Asian markets. Traders were cautious as CareEdge Ratings in its latest report has said the India’s rural demand is vulnerable and could be further impacted by the ‘dual blows’ of lower income and high food inflation owing to an erratic monsoon. Meanwhile, investors await India's Q1 GDP data to be released later in the Day.  Further, some cautiousness also came amid foreign fund outflows. According to the provisional data available on the NSE, foreign institutional investors (FII) sold shares worth net Rs 494.68 crore on August 30. 

On the global front, Asian markets were trading mostly in red after China’s factory activity contracted for a fifth straight month in August. The official manufacturing purchasing managers index came in at 49.7, representing a softer rate of contraction compared with the 49.4 expected by street and July’s figure of 49.3. Back home, on the BSE sectoral front, traders were seen pilling up position in IT, Consumer Durables, TECK, Metal and Realty, while selling was witnessed in Utilities, Oil & Gas, FMCG, Bankex and PSU. 

The BSE Sensex is currently trading at 65015.82, down by 71.43 points or 0.11% after trading in a range of 64988.31 and 65277.04. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.14%, while Small cap index up by 0.44%.

The top gaining sectoral indices on the BSE were IT up by 0.74%, Consumer Durables up by 0.66%, TECK up by 0.50%, Metal up by 0.47% and Realty up by 0.39%, while Utilities down by 0.61%, Oil & Gas down by 0.59%, FMCG down by 0.52%, Bankex down by 0.31% and PSU down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were JIO Financial up by 4.34%, Maruti Suzuki up by 1.92%, Tech Mahindra up by 1.24%, Ultratech Cement up by 1.09% and HCL up by 1.08%. On the flip side, Nestle down by 1.25%, Bajaj Finance down by 1.07%, Indusind Bank down by 0.85%, Larsen & Toubro down by 0.77% and Asian Paints down by 0.74% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said home textile industry's revenues are expected to rise 7-9 per cent this fiscal (FY24) as the sector regains global share following a correction in domestic cotton prices and restocking by big-box retailers in major overseas markets. It said in the last financial year, their revenues had declined 15 per cent.

According to report, operating profitability of the industry will improve 150-200 basis points to 14-14.5 per cent this fiscal, due to lower raw material cost and better operating leverage, but will still hover below the pre-pandemic levels. It noted improved operating performance will also have the industry maintaining a stable credit outlook despite moderate capex.

The report is based on an analysis of 40 companies, accounting for 40-45 per cent of the sectoral revenues. As much as 70-75 per cent of the industry-wide revenues are from exports, with the US, its biggest market, accounting for more than half of it.

The CNX Nifty is currently trading at 19313.55, down by 33.90 points or 0.18% after trading in a range of 19304.90 and 19388.20. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 4.99%, Maruti Suzuki up by 1.71%, Hindalco up by 1.54%, Tech Mahindra up by 1.15% and Ultratech Cement up by 1.05%. On the flip side, Adani Enterprises down by 2.71%, Adani Ports down by 2.38%, BPCL down by 1.65%, Eicher Motors down by 1.41% and Nestle down by 1.33% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 84.78 points or 0.46% to 18,398.08, Taiwan Weighted lost 66.87 points or 0.4% to 16,652.95, Shanghai Composite weakened 20.95 points or 0.67% to 3,116.19, Jakarta Composite plunged 33.38 points or 0.48% to 6,933.28, KOSPI dropped 9.82 points or 0.38% to 2,551.40. However, Nikkei 225 surged 269.12 points or 0.83% to 32,602.58 and Straits Times rose 15.18 points or 0.47% to 3,235.40.