Domestic indices remain in red in late morning deals

Domestic equity indices remained in red and were trading slightly lower in late morning deals amid weak cues from global markets and ahead of a week packed with central bank meetings including the Federal Reserve and the Bank of Japan, which will be closely scrutinized for the global monetary policy outlook.  Selling in HDFC Bank, Infosys and Ultratech Cement companies stocks put pressure on the markets to trade below neutral lines. Sentiments remained weak as India’s merchandise exports contracted for a seventh consecutive month in August, declining 6.9 per cent year-on-year to $34.48 billion, owing to weak external demand.  There were some buzz in oil & gas industry related stocks as the Union government increased the windfall tax on domestic production of crude oil to Rs 10,000 per tonne from Rs 6,700 per tonne. The increase came into effect from September 16. 

On the global front, Asian markets were trading mostly in red following the negative cues from US markets on Friday, after some upbeat US economic data reignited concerns about the possibility of future interest rate hikes. Back home, traders were seen pilling up position in PSU, Auto, Utilities, Consumer Durables and Power, while selling was witnessed in Telecom, Realty, TECK, IT and Metal. In the stock specific development, Jupiter Life Line Hospitals (JLHL) made a stellar stock market debut with its shares listing at Rs 973 on the NSE, a premium of 32 per cent over the issue price of Rs 735 per share. 

The BSE Sensex is currently trading at 67754.41, down by 84.22 points or 0.12% after trading in a range of 67552.03 and 67781.35. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.01%, while Small cap index up by 0.05%.

The top gaining sectoral indices on the BSE were PSU up by 1.40%, Auto up by 1.05%, Utilities up by 0.86%, Consumer Durables up by 0.69% and Power up by 0.60%, while Telecom down by 0.64%, Realty down by 0.56%, TECK down by 0.52%, IT down by 0.51% and Metal down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.10%, NTPC up by 1.76%, Titan up by 1.53%, SBI up by 1.50% and Tata Motors up by 0.96%. On the flip side, HDFC Bank down by 1.39%, Infosys down by 1.09%, Ultratech Cement down by 1.00%, Wipro down by 0.85% and Kotak Mahindra Bank down by 0.77% were the top losers.

Meanwhile, the commerce ministry in its latest data has said that India’s merchandise exports declined 6.86 per cent to $34.48 billion, the seventh month in a row, in August 2023 as compared to $37.02 billion in August 2022, due to a fall in shipments from key sectors like petroleum and gems and jewellery on subdued global demand. Imports also declined, ninth month in a row, by 5.23 per cent to $58.64 billion against $61.88 billion recorded in August 2022. The trade deficit (difference between imports and exports) during the month remained almost flat at $24.16 billion.

As per the data, merchandise exports for the period April-August 2023 were $172.95 billion as against $196.33 billion during April-August 2022. Merchandise imports for the period April-August 2023 were $271.83 billion as against $309.19 billion during April-August 2022. The merchandise trade deficit for April-August 2023 was estimated at $98.88 billion as against $112.85 billion during April-August 2022.

The data further showed that non-petroleum and non-gems & jewellery exports in August 2023 were $26.00 billion, compared to $25.20 billion in August 2022. Non-petroleum and non-gems & jewellery exports during April-August 2023 were $128.86 billion, as compared to $135.92 billion in April-August 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports in August 2023 were $38.31 billion, compared to $37.86 billion in August 2022. Non-petroleum, non-gems & jewellery (gold, silver & precious metals) imports were $174.80 billion in April-August 2023 as compared to $186.64 billion in April-August 2022.

The CNX Nifty is currently trading at 20185.80, down by 6.55 points or 0.03% after trading in a range of 20121.65 and 20191.55. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.08%, HDFC Life Insurance up by 2.81%, Bajaj Auto up by 1.79%, NTPC up by 1.69% and Titan up by 1.63%. On the flip side, HDFC Bank down by 1.37%, Dr. Reddy's Lab down by 1.18%, Infosys down by 1.09%, Ultratech Cement down by 1.07% and Hindalco down by 1.01% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 167.12 points or 0.92% to 18,015.77, Taiwan Weighted lost 213.86 points or 1.28% to 16,707.06, Straits Times fell 8.76 points or 0.27% to 3,271.93, Jakarta Composite plunged 24.86 points or 0.36% to 6,957.93 and KOSPI dropped 25.80 points or 0.99% to 2,575.48. However, Shanghai Composite strengthened 2.17 points or 0.07% to 3,119.91.