Benchmarks extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, dragged by across the board selling amid weak global cues. Traders paid no heed towards Crisil report stating that corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter on an annual basis. As per Crisil Ratings, the operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal. Traders also overlooked Union minister Hardeep Singh Puri’s statement that India can become a five trillion dollar economy much before 2028 and said the country's energy transition needs to be done in an orderly manner to safeguard the interests of its large population. On the global front, Asian markets are trading mostly in red after a key Federal Reserve official said that the US central bank should not rush to lower rates, dampening expectations of early rate cuts. 

The BSE Sensex is currently trading at 72246.23, down by 882.54 points or 1.21% after trading in a range of 71757.54 and 72484.80. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.45%, while Small cap index was down by 0.18%.

The top gaining sectoral indices on the BSE were IT up by 0.50%, TECK up by 0.43%, Consumer Durables up by 0.25%, Capital Goods up by 0.24% and Industrials up by 0.20%, while Bankex down by 2.14%, Metal down by 1.36%, Realty down by 1.26%, Auto down by 1.08% and Basic Materials down by 1.00% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 0.93%, TCS up by 0.91%, Infosys up by 0.55%, Tech Mahindra up by 0.41% and Power Grid Corporation up by 0.36%. On the flip side, HDFC Bank down by 5.85%, Tata Steel down by 2.11%, Kotak Mahindra Bank down by 1.99%, Maruti Suzuki down by 1.36% and Mahindra & Mahindra down by 1.24% were the top losers.

Meanwhile, Crisil Ratings in its latest report based on the analysis of 350 companies has said that Indian corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter (Q3FY24) on an annual basis. It stated the operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal.

Revenue growth would have been stronger but for the decline in agri-linked sectors such as fertilisers, consumer staples such as edible oils, industrial commodities like chlor-alkalis and commodity chemicals, and aluminium, it said, excluding financial services and oil and gas sectors. Also, the rating agency said that revenue growth seemed to be propelled by volume.

Aniket Dani, a director with the agency, said construction-linked sectors, which together account for 20 per cent of the overall revenue, grew 5-7 per cent as construction activity picked up after the monsoons, thus augmenting growth of cement and steel companies. The revenues continued to be driven by consumer discretionary products and services, and consumer staples.

The CNX Nifty is currently trading at 21783.50, down by 248.80 points or 1.13% after trading in a range of 21636.95 and 21851.50. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 0.94%, TCS up by 0.92%, BPCL up by 0.62%, Apollo Hospital up by 0.61% and Coal India up by 0.51%. On the flip side, HDFC Bank down by 5.90%, Hindalco down by 2.36%, Bajaj Auto down by 2.24%, Tata Steel down by 2.15% and Kotak Mahindra Bank down by 2.03% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 171.9 points or 0.99% to 17,174.97, Hang Seng declined 446.24 points or 2.89% to 15,419.68, Straits Times fell 25.12 points or 0.79% to 3,159.87, KOSPI dropped 55.82 points or 2.23% to 2,441.77, Jakarta Composite plunged 45.12 points or 0.62% to 7,197.67 and Shanghai Composite weakened 18.39 points or 0.64% to 2,875.60.

On the flip side, Nikkei 225 surged 63.19 points or 0.18% to 35,682.37.