Domestic equity indices trade flat in early noon session

Domestic equity indices traded flat amid volatility in early noon session. The trading activity was subdued with global markets remain close due to New Year’s holiday. Traders were cautious as India recorded a trade deficit with nine of its top ten trade partners in the first seven months of 2023-24, with the US being the only country with which exports exceeded imports. However, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.70-0.85%. Traders were getting some encouragement as British Prime Minister Rishi Sunak is keen to clinch a free trade agreement (FTA) with India in time for Easter, which falls at the end of March 2024. The India-UK FTA talks began in January last year, aimed at significantly enhancing the GBP 36-billion bilateral trading partnership. A new round of negotiations, expected to be the last, is set to start early in the new year after the thirteenth round concluded on December 15. On the BSE sectoral front, traders were seen pilling up position in PSU, Telecom, Oil & Gas, Energy and Basic Materials, while selling was witnessed only in TECK. 

The BSE Sensex is currently trading at 72180.79, down by 59.47 points or 0.08% after trading in a range of 72032.97 and 72244.18. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.73%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were PSU up by 1.33%, Telecom up by 1.33%, Oil & Gas up by 1.08%, Energy up by 1.06% and Basic Materials up by 0.85%, while TECK down by 0.04% was the only losing index on BSE.

The top gainers on the Sensex were Tata Motors up by 1.52%, Nestle up by 1.22%, Tata Steel up by 0.57%, ITC up by 0.55% and Power Grid up by 0.46%. On the flip side, Bharti Airtel down by 1.47%, Mahindra & Mahindra down by 1.27%, Ultratech Cement down by 0.83%, Hindustan Unilever down by 0.79% and Bajaj Finserv down by 0.48% were the top losers.

Meanwhile, the output of eight core industries slipped to a six-month low of 7.8 per cent in November 2023 due to a decline in the output of crude oil and cement sectors. The core sector's (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in October was 12 per cent. The last low was registered in May when these sectors recorded a growth of 5.2 per cent. However, the growth during the month under review is higher than the 5.7 per cent recorded a year ago. The final growth rate of Index of Eight Core Industries for August 2023 is revised to 13.4 per cent. The cumulative growth rate of Index of Eight Core Industries during April to November, 2023-24 is 8.6 per cent (provisional) as compared to the corresponding period of last year. All sectors, except crude oil and cement, recorded healthy production growth in the month under review.

Coal production having 10.33 per cent weight increased by 10.9 per cent in November, 2023 over November, 2022. Its cumulative index increased by 12.8 per cent during April to November, 2023-24 over corresponding period of the previous year. Electricity generation having 19.85 per cent weight increased by 5.6 per cent in November, 2023 over November, 2022. Its cumulative index increased by 7.7 per cent during April to November, 2023-24 over corresponding period of the previous year. Fertilizer production having 2.63 per cent weight increased by 3.4 per cent in November, 2023 over November, 2022. Its cumulative index increased by 6.3 per cent during April to November, 2023-24 over corresponding period of the previous year.

Natural Gas production having 6.88 per cent weight increased by 7.6 per cent in November, 2023 over November, 2022. Its cumulative index increased by 5.4 per cent during April to November, 2023-24 over corresponding period of the previous year. Petroleum Refinery production having 28.04 per cent weight increased by 12.4 per cent in November, 2023 over November, 2022. Its cumulative index increased by 5.0 per cent during April to November, 2023-24 over corresponding period of the previous year. Steel production having 17.92 per cent weight increased by 9.1 per cent in November, 2023 over November, 2022. Its cumulative index increased by 14.2 per cent during April to November, 2023-24 over corresponding period of the previous year.

However, Cement production having 5.37 per cent weight decreased by 3.6 per cent in November, 2023 over November, 2022. Its cumulative index increased by 10.3 per cent during April to November, 2023-24 over corresponding period of the previous year. Crude Oil production having 8.98 per cent weight decreased by 0.4 per cent in November, 2023 over November, 2022. Its cumulative index declined by 0.2 per cent during April to November, 2023-24 over corresponding period of the previous year.

The CNX Nifty is currently trading at 21732.70, up by 1.30 points or 0.01% after trading in a range of 21684.05 and 21748.80. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.04%, Coal India up by 2.33%, Adani Ports up by 2.28%, UPL up by 1.80% and Tata Motors up by 1.62%. On the flip side, Eicher Motors down by 2.34%, Mahindra & Mahindra down by 1.49%, Bharti Airtel down by 1.17%, Hindustan Unilever down by 0.88% and Bajaj Auto down by 0.73% were the top losers.