Markets trade in red in late afternoon session

The Indian equity benchmarks traded near neutral lines with negative bias in late afternoon session. Traders were seen piling up positions in power and auto sectors, while selling was witnessed in Realty and Metal sectors stocks. Traders failed to draw any sense of relief from interim budget 2024-25. Finance Minister Nirmala Sitharaman kept Income Tax rates unchanged in the Interim Budget. Meanwhile, Finance Minister increased the infrastructure capital expenditure in the interim budget for FY 2025 by 11.1% to Rs 11.1 lakh crore. On the global front, Asian markets were trading mixed following a sell-off on Wall Street after the US Federal Reserve poured cold water on hopes for a March interest rate cut. European markets were trading mostly in red as investors digested the outcome from the Federal Reserve’s latest meeting and more corporate earnings ahead of the release of eurozone inflation data and the Bank of England’s latest monetary policy decision.

The BSE Sensex is currently trading at 71725.18, down by 26.93 points or 0.04% after trading in a range of 71584.87 and 72151.02. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.60%, while Small cap index down by 0.30%.

The top gaining sectoral indices on the BSE were Power up by 0.88%, Utilities up by 0.86%, PSU up by 0.64%, Auto up by 0.51% and FMCG was up by 0.33%, while Realty down by 1.43%, Telecom down by 1.33%, Capital Goods down by 1.14%, Metal down by 0.99% and Industrials was down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.72%, Power Grid up by 2.95%, TCS up by 1.60%, SBI up by 1.38% and NTPC up by 1.34%. On the flip side, Larsen & Toubro down by 2.33%, JSW Steel down by 1.69%, Ultratech Cement down by 1.64%, Bharti Airtel down by 1.59% and Titan Company down by 1.53% were the top losers.

Meanwhile, India's manufacturing sector picked up growth momentum in the month of January, aided by positive demand trends, fastest increases in new orders and production. International sales also expanded at a quicker pace, while companies scaled up input purchasing and became even more optimistic towards the year-ahead outlook for output. According to the report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) recovered from an 18-month low of 54.9 in December to 56.5 in January. The latest reading highlighted the strongest improvement in the health of the sector since last September.

The survey noted that new orders placed with Indian goods producers rose at a sharp pace in January, and one that was the strongest in four months. Growth was reportedly boosted by marketing efforts and demand buoyancy. Further, the upturn in total sales was supported by a further increase in new export orders. Goods producers reported stronger demand from clients spread across Africa, Asia, Australia, Europe, the Middle East and the Americas. Collectively, the rate of expansion in international orders was the fastest since last October. Positive sales developments encouraged companies to scale up production volumes. 

On the price front, input costs rose at the quickest rate in three months, albeit one that was moderate and among the weakest seen in three-and-a-half years. Rising input prices and demand strength, alongside greater transportation and wage costs, led manufacturers to increase their own fees in January. The average rate of charge inflation quickened to a three-month high and matched its long-run average. Besides, goods producers collectively recorded the fastest increase in outstanding business volumes in 15 months, with demand strength reportedly exerting pressure on their capacities. The rate of accumulation was moderate overall. 

The CNX Nifty is currently trading at 21713.30, down by 12.40 points or 0.06% after trading in a range of 21658.75 and 21832.95. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 4.76%, Power Grid up by 2.87%, Cipla up by 2.85%, SBI Life up by 2.37% and HDFC Life Insurance up by 2.07%. On the flip side, Larsen & Toubro down by 2.32%, Dr. Reddy's Lab down by 2.18%, UPL down by 1.98%, Grasim Industries down by 1.79% and Ultratech Cement down by 1.79% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 81.14 points or 0.52% to 15,566.21, Taiwan Weighted added 78.55 points or 0.44% to 17,968.11, KOSPI increased 45.37 points or 1.78% to 2,542.46 and Jakarta Composite was up by 5.37 points or 0.07% to 7,213.31. On the flip side, Straits Times fell 12.97 points or 0.41% to 3,140.04, Shanghai Composite weakened 17.81 points or 0.64% to 2,770.74 and Nikkei 225 was down by 275.25 points or 0.76% to 36,011.46.

European markets were trading mostly in red; France’s CAC fell 45.84 points or 0.6% to 7,610.91 and Germany’s DAX was down by 33.01 points or 0.2% to 16,870.75. On the flip side, UK’s FTSE 100 was up by 26.67 points or 0.35% to 7,657.24.