Markets remain in red in late morning deals

Indian equity markets remained in red in late morning deals on account of profit booking after three days of consistent gains. Selling in ICICI Bank, Power Grid, Bajaj Finance and HDFC Bank companies’ stocks pressured the markets to trade below neutral lines. Further, weak cues from other Asian markets also weighed on the domestic sentiments. Depreciation in Indian rupee against dollar also weighed down sentiments. Rupee weakened by 5 paise to 83.26 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks.  However, broader indices were trading higher with BSE Mid cap index and Small cap index gaining in the range of 0.25-0.35%. 

On the global front, Asian markets were trading mostly in red despite positive cues from US markets overnight. Traders were cautious even as the average of household spending in Japan was up 0.3 percent on month in September, the Ministry of Internal Affairs and Communications said - coming in at 282,969 yen. Back home, on the BSE sectoral front, traders were seen pilling up position in Oil & Gas, Healthcare, PSU, Energy and Utilities, while selling was witnessed in Realty, Bankex, TECK and FMCG. 

The BSE Sensex is currently trading at 64834.85, down by 123.84 points or 0.19% after trading in a range of 64701.59 and 65021.29. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.29%, while Small cap index up by 0.34%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.91%, Healthcare up by 0.88%, PSU up by 0.74%, Energy up by 0.59% and Utilities up by 0.58%, while Realty down by 0.94%, Bankex down by 0.20%, TECK down by 0.10% and FMCG down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.85%, Sun Pharma up by 0.84%, Indusind Bank up by 0.73%, Tata Steel up by 0.63% and Mahindra & Mahindra up by 0.47%. On the flip side, ICICI Bank down by 0.96%, Power Grid down by 0.91%, Bajaj Finance down by 0.69%, Asian Paints down by 0.47% and HDFC Bank down by 0.45% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) has said that retail sales of automobiles in the domestic market saw a 7.73 per cent year-on-year decline in October 2023 at 21,17,596 units, mainly due to dip in two-wheeler uptake with the inauspicious period of Shraddh affecting new purchases. Retail sales of automobiles in the domestic market stood at 22,95,099 units in October 2022.

According to the data, two-wheeler retail sales were at 15,07,756 units in October 2023, as against 17,25,043 units in the year-ago period, down 12.60 per cent. Similarly, passenger vehicle (PV) retail also declined by 1.35 per cent at 3,53,990 in October 2023, as compared to 3,58,884 units in October 2022. On the other hand, three-wheeler sales were up 45.63 per cent at 1,04,711 units, as compared to 71,903 units in the year-ago month. Tractor retail sales also grew by 6.15 per cent at 62,440 units, as against 58,823 units in October 2022. Commercial vehicles retail sales increased 10.26 per cent in October 2023 at 88,699 units, as compared to 80,446 units in the year-ago month. 

On the outlook, FADA said 'the near-term outlook for the auto sector is a blend of highs and lows as we approach year-end’. It stated that festivities along with harvest season, especially paddy, are expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns. Commercial vehicle segment is looking at a strong November, with festive and construction activities enhancing demand, alongside anticipated financial schemes. However, it said the PV segment is navigating through a tricky phase. Festive days might spike bookings, yet the shadow of year-end discounts looms over immediate sales.

The CNX Nifty is currently trading at 19389.85, down by 21.90 points or 0.11% after trading in a range of 19347.40 and 19410.00. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.97%, ONGC up by 1.58%, Hindalco up by 1.37%, BPCL up by 1.11% and Divi's Lab up by 1.03%. On the flip side, ICICI Bank down by 0.95%, Power Grid down by 0.94%, Hero MotoCorp down by 0.82%, Bajaj Finance down by 0.66% and HDFC Bank down by 0.53% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 260.2 points or 1.47% to 17,706.39, Nikkei 225 slipped 439.48 points or 1.36% to 32,269.00, Straits Times fell 12.86 points or 0.41% to 3,167.67, KOSPI dropped 67.78 points or 2.78% to 2,434.59, Shanghai Composite weakened 4.02 points or 0.13% to 3,054.39 and Jakarta Composite plunged 42.96 points or 0.63% to 6,835.88. However, Taiwan Weighted added 4.96 points or 0.03% to 16,654.32.