Bourses trade flat in late afternoon session

In volatile trading session, Indian equity markets continued to trade flat in late afternoon session. However, the broader indices, the BSE Mid cap index and Small cap index traded in green. Traders were seen piling up positions in Realty sector’s stocks while selling was witnessed in Metal and IT sectors’ stocks. Downside remained limited as the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the consumption is likely to support economic growth in 2024-25, adding that urban consumption stayed buoyant. He said the resilience in cement production, together with strong growth in steel consumption and production and import of capital goods, augur well for the investment cycle to gain further traction. 

On the global front, Asian markets were trading mostly in red as hawkish comments from a trio of Fed policymakers as well as rising oil prices spurred more uncertainty about the outlook for U.S. interest rates. European markets were trading lower as investors reacted to hawkish comments from Federal Reserve officials and escalating tensions in the Middle East. Meanwhile, Germany's factory orders expanded in February after declining sharply at the start of the year, signaling that the recession is likely to be relatively mild.

The BSE Sensex is currently trading at 74235.88, up by 8.25 points or 0.01% after trading in a range of 73946.92 and 74303.49. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.41%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Realty up by 1.54%, FMCG up by 0.76%, Bankex up by 0.44%, Telecom up by 0.32% and PSU was up by 0.24%, while TECK down by 0.51%, IT down by 0.44%, Oil & Gas down by 0.27%, Capital Goods down by 0.27% and Metal was down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.00%, Kotak Mahindra Bank up by 1.68%, Bajaj Finserv up by 1.43%, HDFC Bank up by 1.22% and Mahindra & Mahindra up by 0.73%. On the flip side, Larsen & Toubro down by 1.46%, Ultratech Cement down by 1.41%, Tech Mahindra down by 1.22%, Bajaj Finance down by 1.21% and Bharti Airtel down by 1.16% were the top losers.

Meanwhile, amid rising rural demand, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the consumption is likely to support economic growth in 2024-25, adding that urban consumption stayed buoyant. He said the resilience in cement production, together with strong growth in steel consumption and production and import of capital goods, augur well for the investment cycle to gain further traction.

Das further noted that the total flow of resources to the commercial sector from banks and other sources at Rs 31.2 lakh crore during 2023-24 is significantly higher than that of last year at Rs 26.4 lakh crore. Besides, he said external demand improved in February with exports registering double digit expansion. Trade deficit, however, widened in February as imports also accelerated.

According to RBI Governor, the outlook for agriculture and rural activity appears bright, with good rabi wheat crop and improved prospects of kharif crops, due to expected normal south-west monsoon. Strengthening of rural demand, improving employment conditions and informal sector activity, moderating inflationary pressures and sustained momentum in manufacturing and services sector should boost private consumption.

The CNX Nifty is currently trading at 22502.45, down by 12.20 points or 0.05% after trading in a range of 22427.60 and 22528.90. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.94%, Kotak Mahindra Bank up by 1.62%, SBI Life up by 1.61%, Bajaj Finserv up by 1.25% and HDFC Bank up by 1.14%. On the flip side, BPCL down by 1.80%, Grasim Industries down by 1.76%, Bajaj Auto down by 1.53%, Larsen & Toubro down by 1.45% and Ultratech Cement down by 1.39% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 781.06 points or 2% to 38,992.08, KOSPI dropped 27.79 points or 1.02% to 2,714.21, Straits Times fell 21.81 points or 0.67% to 3,213.20 and Hang Seng was down by 1.18 points or 0.01% to 16,723.92. On the flip side, Jakarta Composite was up by 30.35 points or 0.42% to 7,284.75.

European markets were trading lower; UK’s FTSE 100 decreased 79.72 points or 1% to 7,896.17, France’s CAC fell 114.38 points or 1.4% to 8,037.17 and Germany’s DAX was down by 270.46 points or 1.47% to 18,132.67.