Domestic indices trade near neutral lines with positive bias

Domestic equity markets traded near neutral lines with a positive bias in late morning deals amid mixed cues from the other Asian markets. Buying in JSW Steel, Tata Steel, Bajaj Finance, Asian Paints and Bajaj Finserv supported the markets to trade above neutral lines. Traders were getting some encouragement as Reserve Bank of India (RBI) Governor Shaktikanta Das said the Indian economy is likely to grow more than the National Statistical Office (NSO) estimate of 7.6 per cent in the current financial year (FY24) and it could be close to 8 per cent. Meanwhile, US Federal Reserve Chair Jerome Powell assured likely rate cuts this year and ruled out near-term risks of economic recession. On the BSE sectoral front, traders were seen pilling up position in Basic Materials, Metal, Capital Goods, Industrials and IT, while selling was witnessed in Oil & Gas, Energy, Auto and Bankex. 

On the global front, Asian markets were trading mixed despite China’s dollar-denominated exports jumped 7.1% year-over-year in the first two months of 2024. It was much higher than street expectation of a 1.9% rise. Back home, in the stock specific development, Mahindra & Mahindra (M&M) fell as promoter entity PMSL diluted stake in company. 

The BSE Sensex is currently trading at 74166.87, up by 80.88 points or 0.11% after trading in a range of 73921.48 and 74245.17. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.60%, while Small cap index up by 0.95%.

The top gaining sectoral indices on the BSE were Basic Materials up by 1.16%, Metal up by 1.07%, Capital Goods up by 1.01%, Industrials up by 0.99% and IT up by 0.70%, while Oil & Gas down by 0.65%, Energy down by 0.56%, Auto down by 0.27% and Bankex down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 2.45%, Tata Steel up by 2.41%, Bajaj Finance up by 1.88%, Bajaj Finserv up by 1.51% and Asian Paints up by 1.40%. On the flip side, Mahindra & Mahindra down by 3.85%, Axis Bank down by 0.95%, Reliance Industries down by 0.69%, ITC down by 0.58% and ICICI Bank down by 0.55% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) in its latest data has showed that automobile retail sales in India rose 13 per cent year on year in February 2024 with all the segments, including passenger vehicles and two-wheelers, witnessing robust offtake. Overall retail sales stood at 20,29,541 units in February 2024 as compared to 17,94,866 units in the year-ago period.

FADA said passenger vehicle sales grew 12 per cent to 3,30,107 units in February 2024 as against 2,93,803 units in February 2023. Two-wheeler sales stood at 14,39,523 units, up 13 per cent, as compared to 12,71,073 units in the same period last year. Commercial vehicle retail sales rose to 88,367 units in February 2024, registering a growth of 5 per cent as against the same month last year.  Three-wheeler retail sales saw a growth of 24 per cent year on year to 94,918 units in February 2024. Similarly, tractor sales grew 11 per cent to 76,626 units in February 2024 from 69,034 units in February last year. 

FADA President Manish Raj Singhania has said that passenger vehicles saw the highest sales figures ever recorded for the month of February. This upward trajectory was propelled by the strategic introduction of new products and enhanced vehicle availability. The growth in the segment was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance. Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth.

The CNX Nifty is currently trading at 22495.00, up by 20.95 points or 0.09% after trading in a range of 22430.00 and 22523.65. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.75%, JSW Steel up by 2.35%, UPL up by 2.25%, Tata Steel up by 2.18% and Bajaj Finance up by 1.87%. On the flip side, Mahindra & Mahindra down by 4.07%, BPCL down by 1.73%, SBI Life down by 1.71%, Axis Bank down by 0.87% and Coal India down by 0.86% were the top losers.

Asian markets were trading mixed; Hang Seng declined 118.65 points or 0.72% to 16,319.44, Nikkei 225 slipped 472.08 points or 1.18% to 39,618.70, Straits Times fell 2.41 points or 0.08% to 3,133.73 and Shanghai Composite weakened 5.07 points or 0.17% to 3,034.86. However, KOSPI increased 5.45 points or 0.21% to 2,646.94, Jakarta Composite gained 37.5 points or 0.51% to 7,367.30 and Taiwan Weighted added 222.37 points or 1.13% to 19,721.82.