Markets trade in red in early deals on Tuesday

Indian equity markets have made negative start and are trading in red in early deals on Tuesday amid mixed cues from the global markets. Selling in Maruti Suzuki, Bharti Airtel, HDFC Bank and Power Grid companies’ stocks dragged the markets lower. Rising cure oil prices also weighed on the domestic sentiments. Foreign fund outflows dampened sentiments in the markets. Provisional data from the NSE showed that foreign institutional investors (FIIs) net sold shares worth Rs 3,309.76 crore on March 22. Weakness also prevailed in the markets after the latest payroll data released by the Employee Provident Fund Organisation (EPFO) said  the formal labour market in January experienced a slowdown as fewer fresh jobs were created during the month. In January 2024, the number of new monthly subscribers under the Employees’ Provident Fund (EPF) declined by nearly 4 per cent to 807,865 from 840,584 in December 2023.

On the global front, Asian are trading mixed following negative cues from the US markets overnight. US markets ended lower on Monday after a private report said China has introduced new guidelines to phase microprocessors from Intel and Advanced Micro Devices (AMD) out of government PCs and servers.  Back home, on the BSE sectoral front, traders were seen pilling up position in  Metal, Utilities, Power, Basic Materials and Auto, while selling was witnessed in FMCG, Bankex, Consumer Durables, TECK and Realty. 

The BSE Sensex is currently trading at 72688.68, down by 143.26 points or 0.20% after trading in a range of 72363.03 and 72705.29. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.27%, while Small cap index up by 0.06%.

The top gaining sectoral indices on the BSE were Metal up by 0.83%, Utilities up by 0.62%, Power up by 0.46%, Basic Materials up by 0.41% and Auto up by 0.34%, while FMCG down by 0.41%, Bankex down by 0.24%, Consumer Durables down by 0.09%, TECK down by 0.05% and Realty down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.51%, Mahindra & Mahindra up by 1.40%, Tata Motors up by 1.24%, Indusind Bank up by 0.89% and Bajaj Finserv up by 0.69%. On the flip side, Power Grid down by 2.48%, Maruti Suzuki down by 1.14%, Bharti Airtel down by 0.70%, HDFC Bank down by 0.59% and SBI down by 0.56% were the top losers.

Meanwhile, the finance ministry in its Monthly Economic Review has said that with an uptick in private investment and inflation trending down, India’s outlook for the next fiscal looks positive. It also said that inclusion of Indian bonds in Bloomberg bond index from January 2025 should bolster inflows.

It said robust investment activity is driving growth amid a steady rise in consumption. The continued focus on public investment seems to have crowded in private investment. The National Statistical Office (NSO) has revised upwards the GDP growth estimate for current fiscal to 7.6 per cent from 7.3 per cent.

The ministry said India grew above 8 per cent for three consecutive quarters, reaffirming its position as a standout performer amid sluggish global growth trends. Various agencies echo a similar sentiment revising the FY24 growth estimates of India closer to 8 per cent. On the whole, India looks positively towards the dawn of FY25.

It said increased demand for residential properties in tier-2 and tier-3 cities augurs well for furthering construction activity. Non-farm employment has revived, improving the capacity to absorb the labour leaving agriculture. It added the ascent of manufacturing sector employment is expected to be marked by upscaling of enterprises and sunrise sectors emerging as catalysts for generating quality employment.

The CNX Nifty is currently trading at 22064.95, down by 31.80 points or 0.14% after trading in a range of 21947.55 and 22073.20. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 1.96%, Adani Ports up by 1.81%, Adani Enterprises up by 1.74%, Bajaj Finance up by 1.58% and Coal India up by 1.35%. On the flip side, Power Grid down by 2.28%, Britannia down by 1.70%, Maruti Suzuki down by 0.99%, Bharti Airtel down by 0.76% and HDFC Bank down by 0.59% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 31.99 points or 0.08% to 40,382.13, Taiwan Weighted lost 127.16 points or 0.63% to 20,065.09, Shanghai Composite weakened 11.41 points or 0.38% to 3,014.90 and Jakarta Composite plunged 25.04 points or 0.34% to 7,352.72. However, Straits Times rose 27.22 points or 0.85% to 3,225.32, KOSPI increased 19.46 points or 0.71% to 2,757.03 and Hang Seng advanced 11.05 points or 0.07% to 16,484.69.