Benchmarks trade marginally in red in morning deals

Indian equity benchmarks traded marginally in red in morning deals, amid weakness in global stocks. Traders remained cautious with the commerce department stating that growing attacks on commercial shipping vessels travelling through the lower Red Sea have resulted in a combined impact of higher freight costs, insurance premiums and longer transit times. He cautioned that it can make imported goods significantly more expensive. Traders also took a note of the commerce ministry’s data showing that India’s merchandise exports registered marginal growth of 0.97 per cent to $38.45 billion in December 2023 as compared to $38.08 Billion in December 2022. Imports declined by 4.85 per cent to $58.25 billion in December 2023 as compared to $61.22 Billion in December 2022 due to a dip in crude oil shipments. On the global front, Asian markets are trading mostly in red amid weakness in global markets as traders pared bets the Federal Reserve will cut interest rates in March. 

The BSE Sensex is currently trading at 73274.39, down by 53.55 points or 0.07% after trading in a range of 73101.01 and 73370.94. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.39%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were PSU up by 0.67%, Oil & Gas up by 0.50%, Industrials up by 0.49%, Consumer Durables up by 0.48% and Capital Goods up by 0.41%, while IT down by 0.73%, Realty down by 0.49%, TECK down by 0.45%, Power down by 0.38% and Utilities down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.21%, Titan Company up by 1.21%, Tata Motors up by 1.21%, Maruti Suzuki up by 1.07% and Bharti Airtel up by 1.03%. On the flip side, HCL Technologies down by 2.82%, Wipro down by 2.01%, Tech Mahindra down by 1.57%, NTPC down by 1.09% and Infosys down by 0.62% were the top losers.

Meanwhile, Moody's Investors Service has said the strength of the next government's mandate following parliamentary elections this year will influence the medium-term trajectory for fiscal consolidation and governance in India. Parliamentary elections in India are due in April-May this year.

It further said a moderation in economic conditions in the US and the persistence of subdued growth in the euro area in 2024 will further dampen demand for goods produced in Asia Pacific and curb global commodity prices, but large emerging markets like India will be able to mitigate the impact.

Moody's in its 2024 outlook for APAC sovereigns said that the forthcoming elections, particularly those with greater likelihood of leadership transitions, including Indonesia, pose a degree of policy uncertainty as governments seek to manage key geopolitical relationships, especially regarding China and the US, current economic and fiscal strains, and longer-term commitments toward addressing climate change.

It said the prevalence of social risks amid political transition could undermine appetite for or progress on reform, curtailing access to critical external funding in a number of frontier economies such as Bangladesh, Pakistan and Sri Lanka.

The CNX Nifty is currently trading at 22085.85, down by 11.60 points or 0.05% after trading in a range of 22029.20 and 22107.90. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were ONGC up by 1.71%, BPCL up by 1.55%, Titan Company up by 1.53%, Tata Motors up by 1.15% and Bajaj Finance up by 1.13%. On the flip side, HCL Technologies down by 2.64%, Wipro down by 2.07%, LTIMindtree down by 1.60%, Tech Mahindra down by 1.54% and NTPC down by 1.20% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 269.48 points or 0.76% to 35,632.31, Taiwan Weighted lost 145.43 points or 0.84% to 17,401.39, Hang Seng declined 312.06 points or 1.96% to 15,904.27, Straits Times fell 8 points or 0.25% to 3,191.42, KOSPI dropped 18.32 points or 0.73% to 2,507.67 and Shanghai Composite weakened 17.99 points or 0.63% to 2,868.30.

On the flip side, Jakarta Composite gained 36.55 points or 0.5% to 7,260.55.