Bourses trade at day’s low levels in late afternoon session

Indian equity markets traded at day’s low levels in late afternoon session, as traders sold their riskier assets. Investors 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. Besides, TCS slated to post March quarter earnings later today. Sector wise, auto sector remained in focus as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has forecasted a domestic sales volume growth rate of 6%-9% during FY25 as against growth rate of 12%-14% in FY24. According to the report, the personal mobility segments namely passenger vehicles (PVs) and two wheelers (2Ws) would continue to grow, though at moderated rates, driven by improving consumer sentiments and higher disposable income.

On the global front, Asian markets were trading mostly in red as traders struggled to build on Wall Street's positive lead, with hopes for a June interest rate cut fading, while earnings season gets underway in the United States amid optimism for companies' profit outlooks. However, European markets were trading higher after a European Central Bank (ECB) poll of professional forecasters showed that inflation in the euro zone will fall to 2 percent in 2025 and stay there in the longer term, giving the clearest indication that the ECB could cut interest rates in June.

The BSE Sensex is currently trading at 74324.03, down by 714.12 points or 0.95% after trading in a range of 74300.47 and 74951.88. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.15%, while Small cap index was down by 0.24%.

The top losing sectoral indices on the BSE were Consumer Durables down by 1.06%, Oil & Gas down by 1.05%, FMCG down by 1.00%, Healthcare down by 1.00% and Bankex was down by 0.90%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Tata Motors up by 0.65%, Nestle up by 0.32% and TCS up by 0.15%. On the flip side, Sun Pharma down by 3.94%, Maruti Suzuki down by 2.79%, Titan Company down by 2.07%, Power Grid down by 2.04% and JSW Steel down by 2.00% were the top losers.

Meanwhile, maintaining a neutral outlook for the auto sector for FY25, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has forecasted a domestic sales volume growth rate of 6%-9% during FY25 as against growth rate of 12%-14% in FY24. 

According to the report, the personal mobility segments namely passenger vehicles (PVs) and two wheelers (2Ws) would continue to grow, though at moderated rates, driven by improving consumer sentiments and higher disposable income. However it said that slower pace of infrastructure and other industrial activities in H1 FY25, amid the upcoming Lok Sabha 2024 elections along with higher base achieved over FY22-FY24, could lead to flattish sales in the commercial vehicles (CV) segment. 

Meanwhile, Shruti Saboo, Director, Corporate Ratings, Ind-Ra has noted that demand would be backed by personal consumption factors including higher disposable income, and recovery in consumer sentiments, though drying up of pent-up demand will moderate the growth rate. Also, despite continued infrastructure spending, ongoing capex and improving industrial production, CV sales could moderate due to the interruptions related to the 2024 Lok Sabha elections. Trends of premiumisation will continue, supporting sales of utility vehicles and more than 150CC motorcycles.

The CNX Nifty is currently trading at 22550.80, down by 203.00 points or 0.89% after trading in a range of 22538.70 and 22726.45. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 1.28%, Bajaj Auto up by 0.60%, Tata Motors up by 0.55%, Nestle up by 0.38% and NTPC up by 0.25%. On the flip side, Sun Pharma down by 3.91%, Maruti Suzuki down by 2.76%, Cipla down by 2.10%, JSW Steel down by 2.04% and Power Grid down by 2.04% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 373.34 points or 2.23% to 16,721.69, KOSPI dropped 25.14 points or 0.94% to 2,681.82, Taiwan Weighted lost 16.65 points or 0.08% to 20,736.57, Shanghai Composite weakened 14.78 points or 0.49% to 3,019.47 and Straits Times was down by 8.6 points or 0.27% to 3,219.01. On the flip side Nikkei 225 was up by 80.92 points or 0.2% to 39,523.55.

European markets were trading higher; UK’s FTSE 100 increased 83.08 points or 1.05% to 8,006.88, France’s CAC rose 79.35 points or 0.99% to 8,103.09 and Germany’s DAX was up by 184.78 points or 1.03% to 18,139.26.