Benchmarks erase losses to trade flat in morning deals

Indian equity benchmarks erased all of their initial losses and were trading flat in morning deals, with investor focus shifted to the RBI policy meeting that kicks off today, with the outcome slated for Friday. Traders took some support as the government has broadly met the tax collection target of over Rs 34.37 trillion for 2023-24 on the back of robust economic activity and improved compliance. The government had raised the target for direct tax collection in FY24 (April 2023 to March 2024) to Rs 19.45 trillion, while for indirect taxes (GST+ Customs + Excise) the target was lowered to Rs 14.84 trillion in the revised estimates (RE) presented in Parliament on February 1, 2024. However, some concern came with the provisional data available on the NSE showed foreign institutional investors (FII) sold shares net worth Rs 1,622.69 crore on April 03, 2024. On the global front, Asian markets are trading lower as a devastating earthquake in Taiwan dented risk appetite, while uncertainty over the path of U.S. interest rates also spurred extended profit-taking in the region.

The BSE Sensex is currently trading at 73911.81, up by 7.90 points or 0.01% after trading in a range of 73540.27 and 73946.05. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.80%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.87%, IT up by 0.85%, Utilities up by 0.80%, PSU up by 0.64% and TECK up by 0.61%, while Realty down by 1.14%, FMCG down by 0.65%, Auto down by 0.22%, Telecom down by 0.19% and Bankex down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.79%, HCL Technologies up by 1.68%, Ultratech Cement up by 1.54%, TCS up by 1.09% and Bajaj Finance up by 1.06%. On the flip side, Nestle down by 2.65%, JSW Steel down by 0.94%, Kotak Mahindra Bank down by 0.89%, Indusind Bank down by 0.86% and Hindustan Unilever down by 0.77% were the top losers.

Meanwhile, Deputy Governor M Rajeshwar Rao has said the Reserve Bank of India (RBI) will keep continuous vigil to mitigate risks as unbridled credit growth can be deleterious to the health of a financial entity and if widespread, it could give rise to systemic concerns. Rao said as a regulator, the RBI's endeavour always is to promote a robust and resilient financial intermediation system with an appropriate regulatory and supervisory framework.

He said the technological developments and innovations hold great promise for the financial sector as they have immense potential to increase the reach of financial firms, enhance the range of product offerings and conveniences for customers, expand the ambit of finance to hitherto excluded segments.

He stated ‘At the same time, we need to be alert to the possibilities that the new entrants into the financial services space, including FinTech firms, could significantly alter the universe of financial services providers.’ He added this could affect the degree of market concentration and competition and may give rise to new challenges.

The CNX Nifty is currently trading at 22461.20, up by 7.90 points or 0.04% after trading in a range of 22346.50 and 22466.65. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 2.57%, Tech Mahindra up by 1.80%, HCL Technologies up by 1.67%, Ultratech Cement up by 1.53% and ONGC up by 1.49%. On the flip side, Nestle down by 2.64%, HDFC Life Insurance down by 1.41%, Bajaj Auto down by 1.28%, Britannia Industries down by 1.18% and Adani Enterprises down by 0.94% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 237.58 points or 0.6% to 39,601.33, Taiwan Weighted lost 87.19 points or 0.43% to 20,379.38, Hang Seng declined 125.23 points or 0.75% to 16,806.29, Straits Times fell 22.4 points or 0.69% to 3,225.32, KOSPI dropped 31.17 points or 1.13% to 2,721.99, Jakarta Composite plunged 63.29 points or 0.87% to 7,173.69 and Shanghai Composite weakened 7.5 points or 0.24% to 3,067.46.