Sensex, Nifty trade lower on weak global cues

Indian equity benchmarks made negative start on Thursday tracking overnight losses on Wall Street as well as weakness in Asian counterparts, reflecting ongoing concerns about the outlook for the global economy following the recent release of disappointing economic data across the globe. The spike in crude oil prices also added pressure on the domestic markets. Sensex and Nifty are trading lower with cut of around 0.15% each in early deals due to selling in IT, Utilities and TECK stocks, whereas down side remained capped on account of healthy buying at PSU, Realty and Industrials counters. Foreign fund outflows weighted down on the sentiments. Provisional data from the National Stock Exchange (NSE) showed foreign institutional investors (FII) sold shares worth Rs 3,245.86 crore on September 6. However, broader indices -- BSE Mid & Small cap indices are outperforming larger peers with gains of around half a percent each.

On the sectoral front, renewable energy sector stocks are in focus as the Union Cabinet approved a scheme for providing viability gap funding (VGF) for developing battery storage of 4 gigawatt (Gw) by 2030-31. The VGF for the battery energy storage system (BESS) will have an initial outlay of Rs 9,400 crore and this will include a budgetary grant of Rs 3,700 crore. The scheme is aimed at supporting the energy storage needs of the renewable energy sector, especially solar and wind. In stock specific development, REC jumped after it raised $1.15 billion in August in two tranches from a consortium of six banks.

The BSE Sensex is currently trading at 65789.86, down by 90.66 points or 0.14% after trading in a range of 65672.34 and 65858.42. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were PSU up by 0.65%, Realty up by 0.57%, Industrials up by 0.56%, Telecom up by 0.47% and Energy up by 0.44%, while IT down by 0.16%, Utilities down by 0.15%, TECK down by 0.11% and FMCG down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 0.72%, Tata Steel up by 0.50%, SBI up by 0.34%, Bharti Airtel up by 0.24% and Larsen & Toubro up by 0.22%. On the flip side, Sun Pharma down by 0.72%, Ultratech Cement down by 0.70%, Mahindra & Mahindra down by 0.64%, Bajaj Finance down by 0.61% and Nestle down by 0.51% were the top losers.

Meanwhile, expressing optimism over India’s exports, Chairman, CII national committee on EXIM, Sanjay Budhia, has said that negotiating trade pacts with certain G20 countries and diversifying exports to regions like Brazil and Mexico could help India boost outbound shipments and manufacturing in the years to come. He said that tapping into opportunities in G20 countries is crucial for India’s economic growth and global influence. He said India should diversify its export markets within the G20 countries. He added that while traditional partners like the United States and the European Union remain important, exploring emerging markets within the G20, such as Brazil, South Africa, Indonesia, and Mexico, can open up new avenues for Indian goods and services.

He also said that focusing on collaborations and partnerships in digital technology, IT services, and e-commerce with G20 nations can lead to increased exports and foreign investment. He said ‘SMEs play a significant role in India’s economy. Providing support and incentives to SMEs (small and medium enterprises) to expand their export capabilities can lead to increased exports to G20 countries’, added that India’s G20 presidency is helping strengthen economic ties with the member countries in terms of increasing exports and attracting foreign direct investment. He said ‘India’s trade and investments with the G20 countries is likely to grow significantly in the coming years. India is a rising economic power with a large and growing market, and the G20 countries are some of the world’s largest economies’.

Further, he said that the G20 countries account for about 85 per cent of global GDP and 75 per cent of global trade and this means that India has a significant opportunity to increase its trade and investment with these countries. He added ‘Emerging economies within the G20, such as Brazil, South Africa, and Indonesia, offer untapped opportunities for trade and investment. These efforts will reduce India’s dependence on a few countries and enhance its resilience in global trade’. G20 has 43 members and not 20 countries. Share of G20 nations in India’s merchandise export was 64 per cent and import was 52.4 per cent in 2022.

The CNX Nifty is currently trading at 19581.10, down by 29.95 points or 0.15% after trading in a range of 19550.05 and 19621.10. There were 15 stocks advancing against 34 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Coal India up by 1.62%, Maruti Suzuki up by 0.94%, Dr. Reddy's Lab up by 0.85%, UPL up by 0.80% and BPCL up by 0.75%. On the flip side, Tata Consumer Products down by 2.23%, Apollo Hospital down by 0.81%, Sun Pharma down by 0.77%, Ultratech Cement down by 0.75% and Bajaj Finance down by 0.68% were the top losers.

All Asian markets are trading lower; Hang Seng plunged 175.07 points or 0.95% to 18,274.91, Nikkei 225 slipped 93.94 points or 0.28% to 33,147.08, Taiwan Weighted lost 61.66 points or 0.37% to 16,676.50, Jakarta Composite declined 19.63 points or 0.28% to 6,976.32, Shanghai Composite weakened 18.26 points or 0.58% to 3,139.82, KOSPI fell 15.45 points or 0.6% to 2,547.89 and Straits Times was down by 9.26 points or 0.29% to 3,213.62.