Domestic markets trade lower in early deals on profit booking

Indian equity benchmarks extended their previous session’s southward journey with gap-down opening on Thursday tracking weak global cues as the ‘euphoria’ over the thought of Fed interest-rate cuts faded and pandemic fears resurfaced. Domestic markets are trading lower with cut of around half a percent in early deals as traders are cashing in on the strong upward move seen in recent sessions. Also, some cautiousness came in as the new Covid-19 scare with the detection of new variant JN.1 in states like Goa, Kerala and Maharashtra. Some pessimism came in with a private report that the country's total debt, or the total outstanding bonds which are being traded in the market, rose to $2.47 trillion (Rs 205 lakh crore) in the September quarter. The total debt amount in the March quarter of the previous fiscal was $2.34 trillion (Rs 200 lakh crore). 

On the sectoral front, auto component industry stocks are in focus as Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said the auto component industry is looking to invest around $6.5 to 7 billion over the next five years on capacity expansion and technology upgradation, with the demand expected to remain robust over the period. In stocks specific development, HDFC Bank edged up slightly after raising Rs. 7,425 crores via a bond issue.

The BSE Sensex is currently trading at 70218.12, down by 288.19 points or 0.41% after trading in a range of 69920.39 and 70326.26. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.06%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Telecom up by 0.80%, Utilities up by 0.77%, Energy up by 0.61%, Oil & Gas up by 0.59% and Power up by 0.51%, while Bankex down by 0.80%, Realty down by 0.80%, Healthcare down by 0.59%, Capital Goods down by 0.53% and Auto down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.23%, Reliance Industries up by 0.58%, Kotak Mahindra Bank up by 0.33%, Ultratech Cement up by 0.33% and NTPC up by 0.30%. On the flip side, Axis Bank down by 2.34%, Larsen & Toubro down by 1.60%, ICICI Bank down by 1.42%, Sun Pharma down by 1.35% and Indusind Bank down by 0.99% were the top losers.

Meanwhile, an article published in the Reserve Bank of India (RBI) bulletin has stated that broad-based strengthening of economic activity in India will likely be sustained and retail inflation is expected to ease to 4.6 per cent in the first three quarters of 2024-25 from the latest print of 5.6 per cent.

It said ‘In India, the broad based strengthening of economic activity that is underway will likely be sustained by easing input costs and corporate profitability’. Consumer Price Index (CPI) based inflation rose to 5.6 per cent in November as the recurrence of food price spikes punctured a brief respite in September and October.

The article authored by a team led by RBI Deputy Governor Michael Debabrata Patra said ‘... but it is expected to ease to 4.6 per cent in the first three quarters of 2024-25’. It further said domestic financial markets have been lifted by the abiding strength of the real economy. However, the RBI said the article does not represent the views of the central bank.

The CNX Nifty is currently trading at 21052.30, down by 97.85 points or 0.46% after trading in a range of 20976.80 and 21095.35. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 0.79%, ONGC up by 0.69%, LTIMindtree up by 0.58%, Adani Enterprises up by 0.56% and Adani Ports & SEZ up by 0.55%. On the flip side, Axis Bank down by 2.66%, Cipla down by 1.90%, Bajaj Auto down by 1.68%, Larsen & Toubro down by 1.56% and ICICI Bank down by 1.51% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 547.24 points or 1.63% to 33,128.70, Taiwan Weighted lost 106.46 points or 0.6% to 17,528.74, Hang Seng declined 40.69 points or 0.24% to 16,573.12, Jakarta Composite fell 20.94 points or 0.29% to 7,198.73 and KOSPI was down by 20.39 points or 0.78% to 2,593.91. On the other hand, Straits Times rose 4.47 points or 0.14% to 3,112.50 and Shanghai Composite was up by 4.38 points or 0.15% to 2,906.49.