Benchmarks add losses in morning deals

Indian equity benchmarks added losses in morning deals, due to weakness in Metal, Capital Goods and Banking stocks amid unabated foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 696.02 crore on Tuesday, according to exchange data. Sentiments remained down-beat with a private survey showed India's manufacturing growth slowed for a second straight month in October as demand eased, which alongside bigger increases in the cost of raw materials had an impact on business confidence. The Manufacturing Purchasing Managers' Index, compiled by S&P Global, dropped to an eight-month low of 55.5 in October from 57.5 in September. Traders overlooked data released by the Controller General of Accounts (CGA) showed that the Centre’s tax collections continued to exhibit buoyancy with gross-tax revenue (GTR), net of refunds, recording a sharp 16.3% year-on-year growth in the first half of FY24. This compares with 10% growth budgeted for the whole fiscal year. On the global front, Asian markets are trading mostly in green even as Middle East worries persisted, and investors awaited the Federal Reserve's rate decision later in the day for directional cues.

The BSE Sensex is currently trading at 63692.51, down by 182.42 points or 0.29% after trading in a range of 63647.75 and 63896.05. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.14%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Realty up by 1.18%, Oil & Gas up by 0.63%, Telecom up by 0.62%, Energy up by 0.33% and Consumer Durables up by 0.27%, while Metal down by 0.67%, Capital Goods down by 0.50%, Bankex down by 0.47%, Power down by 0.43% and Basic Materials down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 0.59%, SBI up by 0.51%, Wipro up by 0.48%, Reliance Industries up by 0.48% and Sun Pharma up by 0.39%. On the flip side, JSW Steel down by 1.53%, Larsen & Toubro down by 1.18%, Maruti Suzuki down by 1.11%, Kotak Mahindra Bank down by 1.07% and Nestle down by 1.05% were the top losers.

Meanwhile, Ratings agency ICRA has said that India's domestic automobile industry is expected to record moderate growth in volumes in FY24, but a sustained recovery in demand sentiments remains to be seen, amid concerns over the impact of an uneven monsoon on rural demand. It stated the industry has been on a comeback trail over the past two years, aided by a recovery in economic activities and increased mobility although the pace of revival across the various automotive segments has been somewhat mixed.

It mentioned the passenger vehicle segment reached all-time high volume levels in FY23, aided by a preference for personal mobility and stable semiconductor supplies and the demand sentiments are expected to remain healthy in the segment, 6-9% year-on-year (YoY) growth in FY24. Similarly, the commercial vehicle industry's overall industry volumes are expected to approach pre-pandemic highs, even as the growth is expected to remain at modest levels in FY24, 2-4% YoY, on a healthy base.

The segment had witnessed a robust growth in volumes in FY23 on a curtailed base. In contrast to these two segments, the two-wheeler industry has continued to struggle with industry volumes still below the pre-Covid peak levels. ICRA Senior Vice President & Group Head - Corporate Ratings Shamsher Dewan said ‘We expect growth across the automotive industry segments to remain at moderate levels in FY2024. While the passenger vehicle volumes would continue to trend upwards, aided by favourable demand drivers, the two-wheeler industry is also expected to record moderate growth in volumes aided by a low base.’

The CNX Nifty is currently trading at 19043.85, down by 35.75 points or 0.19% after trading in a range of 19019.65 and 19096.05. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.79%, Tata Consumer Product up by 1.30%, Bajaj Auto up by 0.99%, Mahindra & Mahindra up by 0.65% and SBI up by 0.62%. On the flip side, JSW Steel down by 1.58%, Larsen & Toubro down by 1.16%, Maruti Suzuki down by 1.11%, Coal India down by 1.10% and Kotak Mahindra Bank down by 1.10% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 650.53 points or 2.11% to 31,509.38, Taiwan Weighted added 71.14 points or 0.44% to 16,072.41, Hang Seng advanced 6.64 points or 0.04% to 17,119.12, Straits Times rose 6.41 points or 0.21% to 3,074.15, KOSPI increased 16.51 points or 0.72% to 2,294.50 and Shanghai Composite strengthened 4.87 points or 0.16% to 3,023.64.

On the flip side, Jakarta Composite plunged 75.92 points or 1.12% to 6,676.29.