Domestic indices trade flat with negative bias ahead of Fed Chair Jerome Powell's speech

Indian equity benchmarks made slightly positive start on Thursday as crude oil prices softened overnight. Soon, markets turned volatile and are trading in red in early deals ahead of weekly F&O expiry later in in the day. Also, investors looked ahead to Fed Chair Jerome Powell's speech later in the day. Foreign fund outflows dented sentiments. Provisional data from the National Stock Exchange showed that foreign institutional investors offloaded shares worth Rs 84.55 crore on November 8. However, downside remained capped as S&P Global Ratings said India's economy has a track record of strong growth and retained its 6% growth forecast for current fiscal year.

On the global front, Asian markets are trading mostly in green as traders reacted to Chinese data showing producer prices declined for the 13th straight month and consumer prices were down more than expected in October. Back home, Jewelers stocks are in focus during this festive season amid expectations of strong demand on the auspicious occasion of Dhanteras. In stock specific development, Power Finance Corp jumped after quarterly profit increased 27 percent from last year.

The BSE Sensex is currently trading at 64934.70, down by 40.91 points or 0.06% after trading in a range of 64873.48 and 65037.83. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.26%, while Small cap index was up by 0.31%. 

The top gaining sectoral indices on the BSE were Realty up by 1.70%, Auto up by 0.89%, Consumer Disc up by 0.54%, PSU up by 0.27% and Telecom up by 0.23%, while FMCG down by 0.33%, Energy down by 0.28%, Oil & Gas down by 0.26%, TECK down by 0.19% and Power down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.04%, Tata Motors up by 0.72%, Larsen & Toubro up by 0.65%, Maruti Suzuki up by 0.65% and Indusind Bank up by 0.59%. On the flip side, Tech Mahindra down by 1.01%, Reliance Industries down by 0.58%, Sun Pharma down by 0.54%, Hindustan Unilever down by 0.51% and Infosys down by 0.47% were the top losers.

Meanwhile, expressing optimism over India’s economic growth, S&P Global Ratings said the country’s economy has a track record of strong growth. It expects this momentum to continue and forecast growth of 6 per cent for FY 2024, then 6.9 per cent for FY 2025 and FY 2026. In Asia-Pacific Credit Outlook 2024 titled 'Slowing Dragons, Roaring Tigers', S&P said gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.

It said India's economic growth shines brightly. However, its yields remain higher, as they have been historically, which puts additional pressure on the cost of funding India's large debt stock. While growth supports market confidence and revenue generation, rates dynamics will be an additional determinant of India's debt trajectory over the next few years. Gradual capital deepening, favourable demographics, and improving productivity are essential growth factors.

It said ‘Challenges for unlocking the next phase of growth include labour force participation, climate resilience, and further improvements in business environment’. It said the Indian economy is reliant on strong growth performance in services industries. The influence of services in the economy has grown over time, while agriculture and other primary industries have reduced economic shares. It added ‘We expect share of services in the economy to rise further as comparative advantages are still in that space’.

The CNX Nifty is currently trading at 19427.45, down by 16.05 points or 0.08% after trading in a range of 19409.15 and 19463.90. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.02%, Hero MotoCorp up by 1.46%, Apollo Hospital up by 0.99%, Tata Motors up by 0.67% and Indusind Bank up by 0.61%. On the flip side, Tata Consumer Products down by 1.56%, Tech Mahindra down by 0.98%, HDFC Life Insurance down by 0.72%, Sun Pharma down by 0.63% and Hindalco down by 0.60% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 337.97 points or 1.05% to 32,504.45, Jakarta Composite gained 18.41 points or 0.27% to 6,822.52, Straits Times rose 15.7 points or 0.5% to 3,145.42, KOSPI increased 7.69 points or 0.32% to 2,429.31 and Shanghai Composite was up by 2.31 points or 0.08% to 3,054.68. On the other hand, Hang Seng declined 54.65 points or 0.31% to 17,513.81 and Taiwan Weighted was down by 16.59 points or 0.1% to 16,724.24.