Markets erase gains to trade flat in morning deals

Indian equity benchmarks erased initial gains and were trading flat in morning deals, amid mixed global cues. Traders turned cautious with provisional data from NSE showing that foreign institutional investors net sold shares worth Rs 306.56 crore on Wednesday. Some concern also came as the latest payroll data released by the EPFO showed that reflecting a slowdown in the pace of formal job creation, new subscribers added by the Employees’ Provident Fund Organisation (EPFO) declined by 10.1 per cent to 5.86 million in the first half (April-September) of FY24, from 6.52 million during the same period last year. However, traders took some support with Chairman of CII National Committee on EXIM Sanjay Budhia stating that the focus on new and existing markets, product diversification and simplification of procedures will significantly help enhance the competitiveness of domestic exports. He said as a part of market facilitation services, industry chamber CII has identified the emerging markets and the potential sectors to help exporters explore newer markets. On the global front, Asian markets are trading mixed as investors react to muted global cues, falling oil prices and a slight uptick in U.S. Treasury yields on expectations that U.S. inflation will remain high. 

The BSE Sensex is currently trading at 66032.57, up by 9.33 points or 0.01% after trading in a range of 66019.87 and 66235.24. 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 0.14%, while Small cap index was up by 0.48%.

The top gaining sectoral indices on the BSE were Realty up by 1.54%, Auto up by 0.32%, Consumer discretionary up by 0.30%, Bankex up by 0.27% and Industrials up by 0.12%, while Healthcare down by 0.60%, Metal down by 0.46%, Power down by 0.34%, Utilities down by 0.26% and TECK down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.22%, Nestle up by 0.74%, SBI up by 0.55%, Wipro up by 0.47% and Asian Paints up by 0.40%. On the flip side, Ultratech Cement down by 1.25%, Larsen & Toubro down by 0.83%, Power Grid Corporation down by 0.66%, Maruti Suzuki down by 0.59% and NTPC down by 0.51% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said the proposed free trade agreements with the European Union (EU) and four-nation EFTA group are doable, but they should keep in mind India's concerns as the level of economic development is different. Goyal said the European Union and European Free Trade Association (EFTA) countries need to understand certain very important and significant differences between the two set of regions. 

He stated ‘We are in active dialogue with the EU and EFTA for a free trade agreement... I do believe that both of these are eminently doable and will significantly help us expand our engagement not only in trade in goods services, but also in investments, technology, tourism, innovation, and clean energy.’

India and EFTA states -- Iceland, Liechtenstein, Norway, and Switzerland -- are negotiating a Trade and Economic Partnership Agreement (TEPA) with a view to boost economic ties between the two regions. Negotiations on the agreement were officially launched in January 2008. A total of 13 rounds of negotiations were held until autumn 2013 before the talks were put on hold. Similarly, negotiations on the trade agreement between India and the EU were officially launched in January 2008, but in 2013 talks were put on hold and again resumed in June 2022.

The CNX Nifty is currently trading at 19805.10, down by 6.75 points or 0.03% after trading in a range of 19802.50 and 19875.15. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 3.10%, Hero MotoCorp up by 2.91%, Eicher Motors up by 1.50%, Indusind Bank up by 1.19% and Adani Ports &SEZ up by 0.88%. On the flip side, Cipla down by 4.16%, Hindalco down by 1.61%, Ultratech Cement down by 1.23%, Apollo Hospital down by 0.93% and Larsen & Toubro down by 0.88% were the top losers.

Asian markets are trading mixed; Taiwan Weighted lost 2.45 points or 0.01% to 17,307.81, Hang Seng declined 64.76 points or 0.37% to 17,669.84, Straits Times fell 3.35 points or 0.11% to 3,111.57 and KOSPI dropped 2.34 points or 0.09% to 2,509.36.

On the flip side, Jakarta Composite gained 94.82 points or 1.35% to 7,001.77, Shanghai Composite strengthened 5.21 points or 0.17% to 3,048.82 and Nikkei 225 surged 97.69 points or 0.29% to 33,451.83.