Benchmarks continue to trade flat with volatility

Indian equity benchmarks continued to trade flat with volatility amid mixed cues from Asian markets and unabated foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 497.21 crore on Tuesday, according to exchange data. Some concern also came with credit rating agency ICRA stating that new investment demand in the second half of this fiscal year is likely to be tempered amid increased geopolitical tensions in the Middle East, and a potential slowdown in the momentum of government capital expenditure (capex) and project execution prior to the general elections. Meanwhile, the Centre has authorised release of tax devolution of Rs 72,961.21 crore to states for November. This will enable the state governments to make in-time releases and add to the festivities and celebrations among the people. On the global front, Asian markets are trading mixed as traders remained cautious ahead of US Fed chair's speech later in the day.

The BSE Sensex is currently trading at 64965.65, up by 23.25 points or 0.04% after trading in a range of 64895.74 and 65124.00. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.83%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.16%, Healthcare up by 1.11%, Energy up by 0.90%, Realty up by 0.90% and Consumer discretionary up by 0.78%, while Bankex down by 0.28% was the lone losing index on BSE.

The top gainers on the Sensex were Asian Paints up by 1.31%, TCS up by 0.82%, Reliance Industries up by 0.56%, Maruti Suzuki up by 0.55% and Larsen & Toubro up by 0.55%. On the flip side, ICICI Bank down by 0.98%, Bajaj Finance down by 0.89%, NTPC down by 0.69%, Tata Steel down by 0.33% and Bajaj Finserv down by 0.30% were the top losers.

Meanwhile, in view of the upcoming festive season, the Union finance ministry has said that Union Government has authorised the release of tax devolution of Rs 72,961.21 crore to State Governments for the month of November 2023, on November 07 instead of the usual date November 10. 

With an allocation of Rs 13,088.51 crore, Uttar Pradesh has topped with the highest allocation in November, followed by Bihar at RS 7,338.44 crore. It stated this will enable the state governments to make in-time releases and add to the festivities and celebrations among the people. 

Currently, 41 per cent of taxes collected by the Centre is devolved in 14 instalments among states during a fiscal year. Tax devolution is a major source of funds for states, used for spending on development, welfare and priority-sector projects and schemes.

The CNX Nifty is currently trading at 19424.85, up by 18.15 points or 0.09% after trading in a range of 19403.85 and 19455.70. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.12%, Cipla up by 1.48%, Dr. Reddy's Lab up by 1.34%, Divi's Lab up by 1.29% and Adani Ports &SEZ up by 1.24%. On the flip side, ICICI Bank down by 1.01%, Bajaj Finance down by 0.81%, NTPC down by 0.73%, Kotak Mahindra Bank down by 0.36% and Power Grid Corp down by 0.34% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 32.33 points or 0.1% to 32,239.49, Straits Times fell 44.61 points or 1.41% to 3,129.20, KOSPI dropped 11.11 points or 0.45% to 2,432.85 and Jakarta Composite plunged 46.46 points or 0.68% to 6,797.33.

On the flip side, Shanghai Composite strengthened 1.6 points or 0.05% to 3,058.87, Taiwan Weighted added 50.63 points or 0.3% to 16,735.58 and Hang Seng advanced 8.2 points or 0.05% to 17,678.36.