Sensex, Nifty cut gains in late noon deals

Indian equity benchmarks cut most of their gains in late afternoon deals, with both Sensex and Nifty trading near their neutral lines, on the back of negative cues from European markets along with selling at Healthcare and Basic Materials counters. Traders got cautious, as Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said that India will have to eventually move to a lower customs duty regime and cannot continue to protect domestic manufacturers by citing infant industry argument.

On the global front, European markets were trading lower, after the euro area private sector contracted for the seventh straight month in December with the largest economies becoming the biggest drags. The final survey results from the purchasing managers' survey by S&P Global showed that the final HCOB composite output index held steady at 47.6 in December. The flash reading was 47.0. A PMI score below 50.0 indicates contraction.

Back home, pharmaceutical industry stocks were in warch, as rating agency Icra said that revenue of 25 leading domestic pharmaceutical companies is expected to grow 9-11 per cent in the current fiscal year. The projected revenue growth in 2023-24 will be primarily supported by 11-13 per cent expansion in the US market and 7-9 per cent growth in the domestic market, while revenues from the European market and emerging markets are expected to rise 11-13 per cent and 13-15 per cent, respectively.

The BSE Sensex is currently trading at 71885.86, up by 38.29 points or 0.05% after trading in a range of 71779.83 and 72156.48. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.32%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were IT up by 1.08%, TECK up by 0.79%, Capital Goods up by 0.66%, Industrials up by 0.40% and Auto up by 0.32%, while Healthcare down by 0.78%, Basic Materials down by 0.75%, Consumer Durables down by 0.54%, Metal down by 0.47% and PSU down by 0.40% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.72%, Hindustan Unilever up by 1.31%, Infosys up by 1.18%, HCL Tech. up by 1.14% and Larsen & Toubro up by 1.05%. On the flip side, Nestle down by 1.86%, Sun Pharma Inds. down by 1.17%, NTPC down by 1.04%, HDFC Bank down by 0.92% and Bharti Airtel down by 0.88% were the top losers.

Meanwhile, India’s services sector witnessed pick-up in growth during the month of December, as demand buoyancy spurred sales, subsequently fuelling business activity. Job creation extended into a nineteenth successive month, while business optimism strengthened. 

As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index jumped to 59.0 in December from 56.9 in November. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 58.5 in December as against 57.4 in November.

The report noted that the rise in total new business was supported by continued growth of international sales, amid higher demand from clients based in Australia, Canada, Europe, the Middle East and South America during December. Having eased since November, however, the rate of expansion in new export orders was modest and the softest since June.

On the inflation front, cost pressures receded further, reaching their lowest in nearly three-and-a-half years. Still, there was a quicker and solid upturn in selling charges. Further, services firms in India expect the strong demand momentum to carry forward to 2024 which, coupled with advertising and better customer relationships, underpinned upbeat forecasts for output. The overall degree of business optimism was strong and better than that seen in November.

The CNX Nifty is currently trading at 21662.50, up by 3.90 points or 0.02% after trading in a range of 21629.20 and 21749.60. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 1.89%, TCS up by 1.87%, SBI Life Insurance up by 1.37%, LTIMindtree up by 1.28% and Hindustan Unilever up by 1.27%. On the flip side, Nestle down by 1.79%, Britannia down by 1.76%, UPL down by 1.51%, Cipla down by 1.38% and Sun Pharma down by 1.36% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 110.65 points or 0.67% to 16,535.33, Taiwan Weighted lost 30.51 points or 0.17% to 17,519.14, Shanghai Composite weakened 25.17 points or 0.86% to 2,929.18 and KOSPI dropped 8.94 points or 0.35% to 2,578.08, while Jakarta Composite gained 5.55 points or 0.08% to 7,365.31, Straits Times rose 9.13 points or 0.29% to 3,183.14 and Nikkei 225 surged 89.13 points or 0.27% to 33,377.42. 

European markets were trading lower; UK’s FTSE 100 fell 46.09 points or 0.6% to 7,676.98, France’s CAC decreased 53.3 points or 0.72% to 7,397.33 and Germany’s DAX decreased 74.56 points or 0.45% to 16,542.73.