Selling pressure continues on D-Street

Selling pressure continued on Indian equity markets in morning deals, with Sensex and Nifty trading down by 710 points and 224 points respectively, amid negative trend in global markets and fresh foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,236.60 crore on Wednesday, according to exchange data. The markets were also hit by the underwhelming earnings report from Tech Mahindra and the IT sector's overall performance. Meanwhile, Government think tank NITI Aayog has initiated a study to develop a comprehensive action plan to bridge India's trade deficit with China over time and align trading strategies with emerging geopolitical situation and potential risks to safeguard supply chains. The Aayog has invited bids from consultants to lead the two studies in areas of reducing trade gap with China and boosting local manufacturing. On the global front, Asian markets are trading lower amid disappointing earnings reports, a surge in Treasury yields, concerns about interest rates and the outlook for economic growth. 

The BSE Sensex is currently trading at 63338.79, down by 710.27 points or 1.11% after trading in a range of 63278.64 and 63774.16. There was 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.00%, while Small cap index was down by 2.43%.

The top losing sectoral indices on the BSE were Realty down by 2.73%, Industrials down by 2.05%, Utilities down by 2.02%, PSU down by 1.87% and Telecom down by 1.85%, while there were no gaining sectoral indices on the BSE. 

The lone gainer on the Sensex was Axis Bank up by 0.99%. On the flip side, Tech Mahindra down by 3.18%, Bajaj Finserv down by 2.83%, Bajaj Finance down by 2.50%, Mahindra & Mahindra down by 2.45% and Asian Paints down by 1.78% were the top losers.

Meanwhile, Rating agency Icra has said that the hotel industry will report double-digit revenue growth in current financial year (FY24), supported by the sustenance of domestic leisure and business travel and an increase in foreign tourist arrivals. It stated the industry has also benefitted from the G20 summit and ongoing ICC World Cup 2023. 

Icra estimates pan-India premium hotel occupancy at around 70-72 per cent in FY24, after recovering to 68-70 per cent in FY23. It added pan-India premium hotel average room rates (ARRs) are expected to be at around Rs 6,000-6,200 in FY24.

Further, it said the medium-term demand outlook also remains healthy, supported by a confluence of factors, including improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE (meetings, incentives, conferences, and exhibitions) events with the opening of multiple new convention centres in the last few years. 

Icra Vice President and Sector Head - Corporate Ratings Vinutaa S said 'Demand is expected to remain strong across markets in FY2024 as consumer sentiments continue to be healthy and corporate performance is stable. Hotel-specific demand would, however, depend on location, competition, and other property-related dynamics.’

The CNX Nifty is currently trading at 18897.80, down by 224.35 points or 1.17% after trading in a range of 18884.20 and 19041.70. There was 1 stock advancing against 49 stocks declining on the index.

The sole gainer on Nifty was Axis Bank up by 1.07%. On the flip side, Tech Mahindra down by 3.15%, Bajaj Finserv down by 2.82%, Mahindra & Mahindra down by 2.58%, Bajaj Finance down by 2.43% and Adani Enterprises down by 2.42% were the top losers.

Asian markets are trading lower; Nikkei 225 slipped 643.83 points or 2.06% to 30,626.09, Taiwan Weighted lost 224.98 points or 1.38% to 16,133.91, Hang Seng declined 94.47 points or 0.56% to 16,990.86, Straits Times fell 12.96 points or 0.42% to 3,065.82, KOSPI dropped 58.56 points or 2.48% to 2,304.61, Jakarta Composite plunged 109.7 points or 1.61% to 6,724.69 and Shanghai Composite weakened 8.76 points or 0.3% to 2,965.35.