Markets turn negative in late afternoon session

Indian equity markets traded flat with negative bias in late afternoon session ahead of RBI interest rate decision. Traders were seen piling up positions in Oil & Gas and Metal sectors’ stocks while selling was witnessed in banking sector’s stocks. Traders ignored report that India's services activity rose at the sharpest rate of expansion in January 2024. The HSBC India Services PMI came in at 61.8 in January, up from 59 in December. It is the highest since July 2023 when the PMI was 62.3. A reading above 50 shows that the sector is expanding. On the global front, Asian markets were trading mostly in red with Chinese shares again leading the declines even after the market regulator in Beijing pledged to crack down on abuses and protect small investors. European markets were trading mostly in green as more upbeat earnings reports rolled in, although broader sentiment remained subdued as investors reassessed their interest rate cut expectations. 

The BSE Sensex is currently trading at 72014.58, down by 71.05 points or 0.10% after trading in a range of 71972.77 and 72385.93. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.64%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.13%, Energy up by 2.84%, PSU up by 2.18%, Metal up by 2.11% and Utilities was up by 1.94%, while Consumer Durables down by 0.71%, Telecom down by 0.60%, Bankex down by 0.30%, Capital Goods down by 0.25% and TECK was down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 5.70%, Power Grid up by 3.14%, Sun Pharma up by 3.13%, Tata Steel up by 2.74% and Mahindra & Mahindra up by 2.33%. On the flip side, Bajaj Finance down by 2.87%, Bharti Airtel down by 2.58%, Bajaj Finserv down by 2.10%, Maruti Suzuki down by 1.57% and Kotak Mahindra Bank down by 1.16% were the top losers.

Meanwhile, stretching the current run of growth to two and a half years, India’s services sector witnessed a sharp growth in the month of January, aided by the quickest increase in new business since last July, which stemmed from buoyant demand from domestic and external clients. Besides, new export sales rose at the fastest pace in three months.

As per the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index jumped to 61.8 in January from 59.0 in December. Further, the HSBC India Composite PMI Output Index    which measures both manufacturing and services    also surged to 61.2 in January as against 58.5 in December.

The report said that new business placed with Indian service providers increased at the fastest rate in six months during January. Advertising, positive demand trends and new client wins fuelled sales, while there was a notable upturn in new export orders at Indian service providers in January, the strongest in three months. 

On the inflation front, largely due to a substantial pick up in cost pressures in the service economy, the aggregate rate of input price inflation quickened to a three month high. That said, prices charged for Indian goods and services rose at the slowest rate in ten months.

The CNX Nifty is currently trading at 21849.40, down by 4.40 points or 0.02% after trading in a range of 21833.40 and 21964.30. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Coal India up by 6.09%, Tata Motors up by 5.66%, BPCL up by 4.68%, Cipla up by 3.53% and ONGC up by 3.27%. On the flip side, UPL down by 9.80%, Bajaj Finance down by 2.84%, Bharti Airtel down by 2.62%, Bajaj Finserv down by 2.03% and Grasim Industries down by 1.72% were the top losers.

Asian markets were trading mostly in red; Straits Times fell 49.69 points or 1.59% to 3,130.08, Jakarta Composite plunged 33.27 points or 0.46% to 7,205.52, Shanghai Composite weakened 27.97 points or 1.04% to 2,702.18, KOSPI dropped 24.00 points or 0.93% to 2,591.31 and Hang Seng was down by 23.55 points or 0.15% to 15,510.01. On the flip side, Taiwan Weighted added 36.14 points or 0.2% to 18,096.07 and Nikkei 225 was up by 196.14 points or 0.54% to 36,354.16.

European markets were trading mostly in green; UK’s FTSE 100 increased 28.15 points or 0.37% to 7,643.69 and Germany’s DAX was up by 7.48 points or 0.04% to 16,925.69. On the flip side, France’s CAC was down by 3.6 points or 0.05% to 7,588.66.