Markets continue to trade flat in late morning deals

Domestic equity indices remained flat in late morning deals despite firm cues from global markets. Selling in IT Industry related stocks namely TCS, Infosys and Tech Mahindra restricted markets to go up. Some cautiousness also came in markets as foreign institutional investors (FII) offloaded shares worth Rs 421.77 crore on October 11, provisional data from the National Stock Exchange (NSE) showed. Investors remained on sidelines ahead of Consumer Price Index (CPI) or retail inflation and Index of Industrial Production (IIP) data to be out later in the day for more directional cues. On the global front, Asian markets were trading higher following positive cues from US markets overnight. Back home, on the BSE sectoral front, traders were seen pilling up position in Metal, Oil & Gas, Energy, PSU and Basic Materials, while selling was witnessed in IT, Realty, TECK and Consumer Durables.

The BSE Sensex is currently trading at 66456.49, down by 16.56 points or 0.02% after trading in a range of 66342.53 and 66577.60. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.64%.

The top gaining sectoral indices on the BSE were Metal up by 1.41%, Oil & Gas up by 1.19%, Energy up by 1.13%, PSU up by 0.91% and Basic Materials up by 0.69%, while IT down by 0.64%, Realty down by 0.63%, TECK down by 0.62% and Consumer Durables down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.68%, JSW Steel up by 1.35%, NTPC up by 1.34%, Tata Steel up by 1.12% and Power Grid up by 1.03%. On the flip side, TCS down by 1.60%, Infosys down by 0.91%, Bajaj Finance down by 0.76%, Tech Mahindra down by 0.58% and Bharti Airtel down by 0.49% were the top losers.

Meanwhile, the Gem Jewellery Export Promotion Council (GJEPC) has said that rising tension between Israel and Palestine is not likely to have any adverse impact on the gem and jewellery industry's exports. According to data by the GJEPC, India has witnessed substantial exports of gem and jewellery to Israel, amounting to $1,279.76 million in 2022-23. It is significant to note that Israel being a very important trading centre exports rough diamonds to the tune of $1,782.80 million.

GJEPC chairman Vipul Shah said 'Israel primarily serves as a re-export market. While the ongoing situation in Israel is of grave concern to us, we express our solidarity with the Israeli diamond trade during this hour of crisis for their nation. It is too early to definitively assess the impact and we are keeping a strict watch on the situation.’  He also said ‘we have not witnessed any disruption in the regular dealings and believe it is unlikely to significantly impact India's gem and jewellery trade with Israel. Nevertheless, we remain hopeful for a swift resolution and the return of peace at that very important geo-political and economic region’.

GJEPC data stated exports of cut and polished diamonds (CPD) to Israel in FY23 was $1,203.73 million, recording a decline of 11.24 per cent year-on-year. From an import perspective, rough diamonds witnessed a decline of 52.79 per cent to $519.97 million in FY23. On September 26, the high inventory situation compelled the gems and jewellery industry bodies to collectively appeal to its members to stop the import of rough diamonds for two months, starting from October 15 amid slowing global demand and rising inventories of domestic players.

The CNX Nifty is currently trading at 19805.80, down by 5.55 points or 0.03% after trading in a range of 19772.65 and 19843.30. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.14%, BPCL up by 1.84%, Maruti Suzuki up by 1.61%, NTPC up by 1.34% and JSW Steel up by 1.26%. On the flip side, TCS down by 1.63%, Infosys down by 0.96%, Cipla down by 0.89%, Bajaj Finance down by 0.80% and Apollo Hospital down by 0.75% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 370.32 points or 2.07% to 18,263.42, Nikkei 225 surged 558.15 points or 1.75% to 32,494.66, Taiwan Weighted added 153.88 points or 0.92% to 16,825.91, Straits Times rose 35.76 points or 1.12% to 3,228.63, KOSPI increased 20.84 points or 0.85% to 2,470.92, Shanghai Composite strengthened 25.1 points or 0.82% to 3,104.06 and Jakarta Composite gained 33.19 points or 0.48% to 6,964.94.