Benchmarks continue to trade in red in morning deals

Indian equity benchmarks continued to trade in red in morning deals, due to weak trends in global markets and unabated foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,712.33 crore on Thursday, according to exchange data. Traders remained cautious with the RBI governor Shaktikanta Das’ statement that retail inflation remains vulnerable to recurring and overlapping food price shocks. However, losses remain capped as some support came with Global rating agency Fitch Ratings’ report stating that Indian banks' Viability Ratings (VR) will continue to benefit from improved operating conditions and performance in the near term. It expects Issuer Default Ratings (IDRs) to remain stable across banks as they are driven by its expectation of extraordinary support from the Indian sovereign (BBB-/Stable), should there be a need. On the global front, Asian markets are trading lower line with the global market downturn prompted by remarks from U.S. Federal Reserve Chair Jerome Powell, who expressed doubts about the sufficiency of interest rates in tackling inflation.

The BSE Sensex is currently trading at 64690.85, down by 141.35 points or 0.22% after trading in a range of 64580.95 and 64756.11. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.26%, while Small cap index was up by 0.21%.

The top gaining sectoral indices on the BSE were Utilities up by 0.58%, Power up by 0.37%, Telecom up by 0.29%, Metal up by 0.11% and Industrials up by 0.11%, while Auto down by 0.86%, Consumer Durables down by 0.50%, Consumer Disc down by 0.47%, Oil & Gas down by 0.37% and FMCG down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.59%, Tech Mahindra up by 0.57%, Bajaj Finance up by 0.31%, JSW Steel up by 0.27% and Bharti Airtel up by 0.25%. On the flip side, Mahindra & Mahindra down by 2.01%, Asian Paints down by 1.19%, Titan Company down by 0.90%, Kotak Mahindra Bank down by 0.52% and Maruti Suzuki down by 0.49% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has said that RBI remains watchful and the monetary policy is actively disinflationary and supporting growth. He stated the government has mandated the RBI to ensure that inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side.

He said the Monetary Policy Committee (MPC) in its October meeting projected CPI inflation at 5.4 per cent for 2023-24, a moderation from 6.7 per cent in 2022-23. The CPI inflation fell to a three-month low of 5 per cent in September. The data for October is scheduled to be released on November 13.

However, he also said headline inflation remains vulnerable to recurring and overlapping food price shocks. He added that core inflation has moderated by 170 basis points since its recent peak in January 2023. The MPC has left the benchmark lending rate unchanged at 6.5 per cent and its next meeting is scheduled in early December. According to Das, the Unified Payments Interface (UPI) has played a phenomenal role in the fintech revolution in India.

The CNX Nifty is currently trading at 19360.80, down by 34.50 points or 0.18% after trading in a range of 19329.45 and 19366.00. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 0.94%, ONGC up by 0.93%, HDFC Life Insurance up by 0.69%, NTPC up by 0.53% and Bajaj Finance up by 0.52%. On the flip side, Mahindra & Mahindra down by 2.00%, Hero MotoCorp down by 1.61%, Bajaj Auto down by 1.20%, Asian Paints down by 1.11% and LTIMindtree down by 0.96% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 121.79 points or 0.37% to 32,524.67, Taiwan Weighted lost 65.69 points or 0.39% to 16,679.96, Hang Seng declined 278.74 points or 1.62% to 17,232.55, Straits Times fell 26.73 points or 0.86% to 3,108.59, KOSPI dropped 17.89 points or 0.74% to 2,409.19, Jakarta Composite plunged 8.9 points or 0.13% to 6,829.33 and Shanghai Composite weakened 13.62 points or 0.45% to 3,039.66.