Benchmarks continue to trade lower in morning deals

Indian equity benchmarks continued to trade lower in morning deals, amid weak global market trends and foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,356.29 crore on Thursday, according to exchange data. Traders remained cautious with report by global rating agency Moody’s asserting that the large of number scheduled elections in various countries in 2024 increases risks of shifts in policy and policy effectiveness. It argued while elections rarely immediately affect sovereign credit ratings, they can result in credit positive or negative developments – like changes in the policymaking process and legislative composition – which according to it ultimately alter a sovereign’s economic and fiscal trajectories. Traders overlooked the Confederation of Indian Industry’s (CII) report that new unicorns are likely to add $1 trillion to the Indian economy, which would reach $7 trillion size by 2030, and add 50 million new jobs. Startup firms valued over $1 billion are categorised as unicorns. On the global front, Asian markets are trading lower as hotter-than-expected U.S. producer price data dented hopes for an imminent rate cut by the Federal Reserve. 

The BSE Sensex is currently trading at 72628.62, down by 468.66 points or 0.64% after trading in a range of 72594.67 and 72998.07. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.23%, while Small cap index was down by 0.73%.

The lone gaining sectoral index on the BSE was Realty up by 0.11%, while Oil & Gas down by 2.99%, PSU down by 2.71%, Energy down by 2.26%, Metal down by 1.67% and Utilities down by 1.63% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.37%, Bajaj Finserv up by 1.27%, ITC up by 0.50%, Bharti Airtel up by 0.48% and TCS up by 0.41%. On the flip side, NTPC down by 3.07%, Mahindra & Mahindra down by 2.16%, Tata Motors down by 1.81%, Axis Bank down by 1.71% and Wipro down by 1.54% were the top losers.

Meanwhile, Industry body the Confederation of Indian Industry (CII) in report 'Unicorn 2.0: Adding the Next Trillion' has said that new unicorns are likely to add $1 trillion to the Indian economy, which would reach $7 trillion size by 2030, and add 50 million new jobs. Startup firms valued over $1 billion are categorised as unicorns. 

Sectors such as retail and e-commerce, next-gen financial services, manufacturing, and SaaS and digital are poised to drive massive growth in the coming years. CII said the report 'Unicorn 2.0: Adding the Next Trillion' has been prepared with McKinsey & Company as the knowledge partner.

The first unicorn was seen in India in 2011, and after a decade, India has crossed the mark of 100 unicorns. The combined valuation of 113 unicorns is $350 billion as of January 2024. The industry body said that the emergence of over 100 unicorns is a remarkable achievement, attributed to several pivotal factors, which encompass a digitally adept young population facilitated by widespread access to mobile internet, the growth of the middle class, and a supportive regulatory framework.

The CNX Nifty is currently trading at 21990.55, down by 156.10 points or 0.70% after trading in a range of 21973.80 and 22120.90. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.39%, Bajaj Finserv up by 1.40%, Adani Enterprises up by 0.70%, Britannia Industries up by 0.65% and UPL up by 0.61%. On the flip side, BPCL down by 5.49%, Coal India down by 3.52%, ONGC down by 3.00%, NTPC down by 2.97% and Mahindra & Mahindra down by 2.04% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 192.99 points or 0.5% to 38,614.39, Taiwan Weighted lost 153.71 points or 0.77% to 19,784.21, Hang Seng declined 354.4 points or 2.13% to 16,607.26, Straits Times fell 8.55 points or 0.27% to 3,177.85, KOSPI dropped 43.94 points or 1.62% to 2,674.82, Jakarta Composite plunged 68.65 points or 0.93% to 7,364.67 and Shanghai Composite weakened 5.39 points or 0.18% to 3,032.84.