Benchmarks trade lower in morning deals

Indian equity benchmarks erased initial gains and were trading lower in morning deals, as investors remained cautious and focused on the US Federal Reserve’s rate decision and commentary today. Some concern also came with the Reserve Bank of India’s data in the March 2024 bulletin showing that the net foreign direct investment (FDI) in India, inflows minus outflows, declined 38.4 per cent year-on-year to $15.41 billion in the first 10 months of this financial year due to an increase in the repatriation of capital. As per the data, FDI in India was $25.53 billion and outflows were $10.11 billion in April 2023-January 2024. However, losses remain capped as some support came with an article on the ‘State of Economy’ published in the Reserve Bank of India’s (RBI) March Bulletin showing that India can sustain 8 per cent annual GDP growth and the conducive macroeconomic configuration may become a launching pad for a step-up in the country’s growth trajectory. On the global front, Asian markets are trading mostly in green as investors digested the Bank of Japan’s shift in monetary policy while awaiting the US Fed’s interest rate decision.

The BSE Sensex is currently trading at 71829.98, down by 182.07 points or 0.25% after trading in a range of 71820.24 and 72268.60. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.97%, while Small cap index was down by 1.04%.

The top losing sectoral indices on the BSE were Metal down by 1.75%, Basic Materials down by 1.38%, Capital Goods down by 1.04%, Industrials down by 0.95% and Consumer Durables down by 0.87%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.22%, Nestle up by 1.38%, Bajaj Finance up by 0.88%, Power Grid Corporation up by 0.66% and TCS up by 0.64%. On the flip side, Tata Steel down by 2.79%, Tata Motors down by 2.12%, Sun Pharma down by 1.53%, Mahindra & Mahindra down by 1.09% and ICICI Bank down by 1.04% were the top losers.

Meanwhile, rating agency ICRA in its latest report has said the domestic alcohol beverages (alcobev) industry is expected to grow in FY25 at 8-10 per cent along with an improvement in margins, helped by a moderation of raw materials prices. Indian-made foreign liquor (IMFL) companies are expected to witness 11-13 per cent revenue expansion supported by a preference towards premium products amid volume growth of 3-5 per cent on a high base of FY24.

Moreover, it said the revenue of the beer companies will witness a 9-11 per cent increase, helped by volume growth of 4-6 cent. ICRA expects beer to witness a good season in Q1 FY2025 in anticipation of a hot summer compared to the previous fiscal, which had encountered unseasonal rainfall.

Further, ICRA expects working capital requirements for the sample set companies to moderate in FY24 and FY25. In addition to that the funding requirements would also be lower in the backdrop of lower input prices led by correction in packaging costs.

The CNX Nifty is currently trading at 21758.95, down by 58.50 points or 0.27% after trading in a range of 21747.20 and 21891.70. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 4.49%, Maruti Suzuki up by 2.27%, Nestle up by 1.48%, BPCL up by 0.90% and Bajaj Finance up by 0.77%. On the flip side, Tata Steel down by 2.86%, Hindalco down by 2.65%, UPL down by 2.15%, Tata Motors down by 2.08% and Tata Consumer Product down by 1.45% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 30.29 points or 0.18% to 16,559.77, Straits Times rose 8 points or 0.25% to 3,181.55 and KOSPI increased 32.03 points or 1.21% to 2,688.20 and Shanghai Composite strengthened 13.91 points or 0.45% to 3,076.67.

On the flip side, Taiwan Weighted lost 6.37 points or 0.03% to 19,850.83 and Jakarta Composite plunged 10.61 points or 0.14% to 7,326.14.