Benchmarks trade flat with negative bias in morning deals

Indian equity benchmarks were trading flat with negative bias in morning deals, amid weak sentiments across Asian peers. Traders remained cautious with the commerce ministry’s data showing that India’s merchandise exports declined by 2.83 per cent to $33.90 billion in November 2023 as compared to $34.89 billion a year ago. Imports also declined to $54.48 billion in the month under consideration, as against $56.95 billion recorded in November 2022. However, the country's trade deficit exhibited a positive trend, narrowing to $20.58 billion in November. Some concern also came as the Engineering Export Promotion Council of India (EEPC) report showed that India's engineering goods exports registered a 3-per cent year-on-year decline in November to $7.85 billion. It said the dip was primarily attributed to the festive season that disrupted operations in major engineering export belts across the country, particularly in northern and western regions. But, losses remain capped as some support came with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that India will become the world’s third largest economy by 2026 as its GDP in current dollar terms will reach $5 trillion in that year and further rise to $5.5 trillion in 2027. On the global front, Asian markets are trading mostly in red as investors digested lackluster U.S. inflation data and awaited the final Federal Reserve decision of the year. U.S. core inflation rose last month, raising concerns that the U.S. central bank might not be quick to declare a win in its policy efforts. 

The BSE Sensex is currently trading at 71450.73, down by 33.02 points or 0.05% after trading in a range of 71142.29 and 71552.24. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.36%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.12%, Consumer Durables up by 0.77%, Telecom up by 0.56%, Auto up by 0.52% and Consumer discretionary up by 0.40%, while Realty down by 0.67%, Bankex down by 0.39%, FMCG down by 0.25%, Power down by 0.20% and Utilities down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.05%, Tech Mahindra up by 1.64%, Reliance Industries up by 1.17%, Bajaj Finance up by 1.10% and Wipro up by 1.05%. On the flip side, ITC down by 1.69%, ICICI Bank down by 1.50%, Power Grid Corporation down by 1.41%, JSW Steel down by 1.38% and Indusind Bank down by 0.91% were the top losers.

Meanwhile, the Engineering Export Promotion Council of India (EEPC) in its latest report has said that India's engineering goods exports registered a 3-per cent year-on-year decline in November to $7.85 billion. The dip was primarily attributed to the festive season that disrupted operations in major engineering export belts across the country, particularly in northern and western regions.

While acknowledging the recent decline, EEPC expressed cautious optimism about exceeding last year's overall engineering exports. EEPC India Chairman Arun Kumar Garodia said after experiencing a slump in the first half of 2023, the sector witnessed positive growth from August to October, which instilled hope for a continued positive trajectory.

He said the industry remains cognizant of the current global challenges, including high inflation and interest rates, particularly in key markets like Europe and the United States. These factors contribute to the ongoing trade slowdown and necessitate continued support from the government to ensure that Indian engineering sector remains competitive in the global market. He stated ‘We believe the engineering exports sector has the resilience and potential to navigate these challenges and eventually pick up a strong pace of growth.’

The CNX Nifty is currently trading at 21454.70, down by 1.95 points or 0.01% after trading in a range of 21365.35 and 21481.05. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.64%, Sun Pharma up by 2.08%, Tech Mahindra up by 1.52%, Eicher Motors up by 1.44% and Bajaj Finance up by 1.13%. On the flip side, ITC down by 1.65%, ICICI Bank down by 1.54%, Coal India down by 1.39%, Power Grid Corporation down by 1.37% and JSW Steel down by 1.32% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 221.22 points or 0.67% to 32,749.33, Taiwan Weighted lost 13.39 points or 0.08% to 17,660.48, Hang Seng declined 163.98 points or 0.98% to 16,628.21, Straits Times fell 5.89 points or 0.19% to 3,110.62, Jakarta Composite plunged 32.83 points or 0.46% to 7,158.16 and Shanghai Composite weakened 6.21 points or 0.21% to 2,936.35.

On the flip side, KOSPI increased 6.31 points or 0.25% to 2,569.87.