Domestic indices continue to trade in red in late morning deals

Domestic equity markets continued to trade in red in late morning deals on account of profit booking after recent sessions' gains. Selling in Maruti Suzuki, Sun Pharma, HDFC Bank and Titan companies’ stocks dragged the markets lower. Traders were cautious amid signs of escalating geopolitical tensions in the Middle East and uncertainty over the pace of U.S. interest-rate cuts this year.  Market participants remained on sidelines ahead of the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out later in the day. Traders took a note of report that Global rating agency Moody's has affirmed India's outlook at Baa3 and P-3, signaling stability. However, it has issued a warning that escalating political tensions or further weakening of checks and balances could harm the country's long-term growth trajectory. 

On the global front, Asian markets were trading mostly in red as investors assessed economic data from Singapore and South Korea while awaiting China trade numbers. Back home, on the BSE sectoral front, traders were seen pilling up position in  Capital Goods, Power, Industrials, Utilities and Auto, while selling was witnessed in Consumer Durables, Bankex, FMCG, Telecom and Healthcare. 

The BSE Sensex is currently trading at 74747.57, down by 290.58 points or 0.39% after trading in a range of 74539.09 and 74951.88. 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 0.46%, while Small cap index up by 0.28%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.79%, Power up by 0.61%, Industrials up by 0.55%, Utilities up by 0.35% and Auto up by 0.32%, while Consumer Durables down by 0.58%, Bankex down by 0.54%, FMCG down by 0.54%, Telecom down by 0.41% and Healthcare down by 0.26% were the losing top indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.17%, Nestle up by 1.07%, NTPC up by 0.95%, Indusind Bank up by 0.41% and Tata Steel up by 0.39%. On the flip side, Sun Pharma down by 2.77%, Titan down by 1.81%, Maruti Suzuki down by 1.31%, Asian Paints down by 1.17% and HDFC Bank down by 1.17% were the top losers.

Meanwhile, Reserve Bank of India’s (RBI) Monetary Policy Report- April 2024 has said that the government's continued emphasis on infrastructure creation, coupled with an uptick in private corporate investment and buoyant business optimism, could nurture a sustained revival in the investment cycle, which augurs well for boosting productivity and growth in the economy. It said domestic economic activity, backed by strong fundamentals, remained robust in the first half of 2023-24, weathering challenges from muted global demand.

The report further said that while the fixed investment and the lower drag from net external demand propelled real GDP growth, private consumption received support from steady urban demand. On the supply side, it said, manufacturing activity strengthened further, benefiting from lower input costs and the improvement in global supply chains. Construction activity remained firm on the back of buoyant housing demand and the government's thrust on infrastructure. He noted that going ahead, private consumption will get support from improved prospects for rural demand and rising consumer confidence.

It further said that the impact of a lower fiscal impulse on growth could be offset by higher growth-inducing capital expenditure. The economy's medium and long-term growth potential is rising, propelled by structural drivers like improving physical infrastructure; development of world class digital and payments technology; ease of doing business; enhanced labour force participation; and improved quality of fiscal spending.

The CNX Nifty is currently trading at 22671.50, down by 82.30 points or 0.36% after trading in a range of 22624.85 and 22726.45. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 1.39%, Tata Motors up by 1.11%, NTPC up by 1.05%, Nestle up by 1.03% and Bajaj Auto up by 0.94%. On the flip side, Sun Pharma down by 2.79%, Titan Co down by 1.91%, Shriram Finance down by 1.41%, Maruti Suzuki down by 1.36% and Apollo Hospital down by 1.26% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 260.09 points or 1.52% to 16,834.94, Taiwan Weighted lost 16.65 points or 0.08% to 20,736.57, Straits Times fell 9.33 points or 0.29% to 3,218.28 and KOSPI dropped 28.75 points or 1.06% to 2,678.21. However, Shanghai Composite strengthened 7.58 points or 0.25% to 3,041.83 and Nikkei 225 surged 80.92 points or 0.21% to 39,523.55.