Domestic indices continue to trade in red on profit booking at higher levels

Domestic equity indices continued to trade in red in early noon deals on account of negative cues from other Asian markets and a notable occurrence of profit booking at higher levels. Meanwhile, the broader markets were also trading in red; the BSE mid-cap index declined by 0.63 per cent and the small-cap index was down 0.53 per cent. Hectic selling in Mahindra & Mahindra, Ultratech Cement, Larsen & Toubro and Wipro companies dragged the markets to lower. Foreign fund outflows weighed on market sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 855.80 crore on Monday, according to exchange data. Depreciation in Indian rupee against dollar also weighed down sentiments. Rupee weakened by 11 paise to 83.32 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. Automobile industry related stocks were under pressure after reporting mixed results for their December sales numbers. Most of the leading auto companies also failed to meet expectations. 

On the global front, Asian markets were trading mostly in red as Official data showed China’s manufacturing PMI contracted further in December 2023, in a sign that more policy support was likely needed to revive its economy. Bank home, in the stock specific development, Lemon Tree Hotels surged amid heavy volumes driven by expectations of strong earnings.  

The BSE Sensex is currently trading at 71679.36, down by 592.58 points or 0.82% after trading in a range of 71613.74 and 72332.85. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.63%, while Small cap index down by 0.53%.

The few gaining sectoral indices on the BSE were Healthcare up by 1.29%, Energy up by 0.25% and Metal up by 0.09%, while Capital Goods down by 1.63%, Auto down by 1.50%, IT down by 1.49%, Industrials down by 1.32% and Realty down by 1.22% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.39%, Bajaj Finance up by 0.87%, Bharti Airtel up by 0.76%, SBI up by 0.12% and Bajaj Finserv up by 0.04%. On the flip side, Mahindra & Mahindra down by 2.68%, Ultratech Cement down by 2.64%, Wipro down by 2.47%, Larsen & Toubro down by 2.25% and Tech Mahindra down by 1.80% were the top losers.

Meanwhile, the government data has showed that India’s power consumption dipped 2.3 per cent to 119.07 Billion Units (BU) in December 2023, marking its first monthly decline in eight months due to lower demand for heating equipment, especially in the north, on account of mild winter. Earlier in April 2023, power consumption had dipped nearly 1.5 per cent to 130.08 BU compared to 132.02 BU in the year-ago period. In December 2022, power consumption stood at 121.91 BU, higher than 109.17 BU recorded in the same month a year ago.

The peak power demand met -- the highest supply in a day -- rose to 213.62 GW in December 2023. The peak power supply stood at 205.10 GW in December 2022 and 189.24 GW in December 2021. It showed that peak power demand touched 213.62 GW on December 29. It was recorded as low as 174.16 GW on December 3. It crossed the 200 GW mark on December 14, 2023, when it stood at 200.56 GW. 

However, the peak supply touched a new high of 224.1 GW in June before dropping to 209.03 GW in July. Peak demand touched 238.82 GW in August. In September 2023, it was 243.27 GW. The peak demand was 222.16 GW in October and 204.86 GW in November 2023. The power ministry had estimated the country's electricity demand to touch 229 GW during the summer. The demand did not reach the projected level in April-July due to unseasonal rains.

The CNX Nifty is currently trading at 21604.60, down by 137.30 points or 0.63% after trading in a range of 21555.65 and 21755.60. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.79%, Divi's Lab up by 2.76%, Sun Pharma up by 2.36%, ONGC up by 1.97% and Dr. Reddy's Lab up by 1.75%. On the flip side, Eicher Motors down by 3.53%, Mahindra & Mahindra down by 2.62%, Ultratech Cement down by 2.58%, Larsen & Toubro down by 2.30% and Wipro down by 2.28% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 310.24 points or 1.82% to 16,737.15, Taiwan Weighted lost 77.05 points or 0.43% to 17,853.76, Straits Times fell 7.08 points or 0.22% to 3,233.19 and Shanghai Composite weakened 6.25 points or 0.21% to 2,968.68. However, Jakarta Composite gained 3.77 points or 0.05% to 7,276.57 and KOSPI increased 15.07 points or 0.57% to 2,670.35.