Domestic indices remain in red in late morning deals

Indian equity markets remained in red and were trading lower by cut of over half percent in late morning deals on account of selling by funds and retail investors. Selling in Tech Mahindra, Infosys, TCS, Sun Pharma and HDFC Bank companies’ stocks dragged the markets lower. Weak cues from global markets weighed on the domestic sentiments. Sentiments were weak following the release of a highly anticipated Labor Department report showing consumer prices in the U.S. increased by slightly more than expected in the month of January. The Labor Department said its consumer price index (CPI) rose by 0.3 percent in January after inching up by 0.2 percent in December. Further, rising 10-year U.S. Treasury yield and crude oil prices also dampened sentiments. 

On the global front, Asian markets were trading mostly in red following weak cues from the global markets over night.  Back home,  on the BSE sectoral front, traders were seen pilling up position in Oil & Gas, PSU, Energy, Telecom and Power, while selling was witnessed in IT, TECK, Healthcare, Consumer Durables and Bankex.  In the stock specific development, Rashi Peripherals made a decent debut with its shares listing at a 9 per cent premium on NSE. The stock listed at Rs 339.50 against the issue price of Rs 311.

The BSE Sensex is currently trading at 71093.87, down by 461.32 points or 0.64% after trading in a range of 70809.84 and 71211.05. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.02%, while Small cap index up by 0.67%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.01%, PSU up by 0.99%, Energy up by 0.92%, Telecom up by 0.83% and Power up by 0.54%, while IT down by 1.81%, TECK down by 1.62%, Healthcare down by 1.23%, Consumer Durables down by 0.55% and Bankex down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 0.81%, SBI up by 0.63%, Power Grid up by 0.54%, Tata Motors up by 0.25% and Bajaj Finance up by 0.24%. On the flip side, Tech Mahindra down by 3.07%, Infosys down by 2.43%, Sun Pharma down by 1.86%, TCS down by 1.59% and HDFC Bank down by 1.58% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) has said that the February outlook for the automobile industry leans toward cautious optimism with growth potential. It said though in January, the industry logged good growth, there are challenges and market complexities as regards the prospects for the current month.  

The FADA said the anticipation of upcoming elections may make customers cautious which may affect the purchasing decisions across the vehicle segments. That apart, there are constraints on the vehicle supply, finance and liquidity sides. Persistent supply bottlenecks for specific high-demand models present a risk factor for consistent growth across two-wheeler, commercial vehicle and passenger vehicle segments, highlighting the need for OEM optimization of production lines. 

It further said fluctuating market liquidity and the potential for tighter financing in the commercial vehicle (CV) sector require a focus on consumer financing solutions to support overall sales. On an overall basis, the Industry Outlook leans towards cautious optimism but shows growth potential in the near term. However, the year 2024 began on a good note for the automobile industry with all the segments -barring the CV segment logging promising growth.

The CNX Nifty is currently trading at 21602.70, down by 140.55 points or 0.65% after trading in a range of 21530.20 and 21650.45. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.96%, Coal India up by 1.50%, Bajaj Auto up by 1.23%, Adani Enterprises up by 1.06% and ITC up by 0.70%. On the flip side, Tech Mahindra down by 3.14%, Infosys down by 2.52%, Cipla down by 2.49%, Dr. Reddy's Lab down by 2.40% and Sun Pharma down by 1.92% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 174.51 points or 0.46% to 37,789.46, Straits Times fell 12.68 points or 0.41% to 3,129.19, KOSPI dropped 29.24 points or 1.12% to 2,620.40. However, Hang Seng advanced 49.94 points or 0.32% to 15,796.52.