Domestic indices trade in red in late morning deals

Domestic equity markets altered between positive and negative territories and were trading in red in late morning deals on account of selling in HDFC Bank, Asian Paints, Tata Motors and Sun Pharma companies’ stocks. Traders were concerned amid foreign fund outflows. Foreign institutional investors (FIIs) offloaded shares worth Rs 4,065.52 crore on May 14. Cautiousness also prevailed in the markets as ICRA Chief Economist Aditi Nayar said the wholesale food inflation, which is at a four-month high, will continue to be a cause for concern in May and June as heatwave is likely to jack up prices of perishable commodities. However, broader indices were trading in green, BSE Mid cap index and Small cap index gaining in the range of 065-0.90%. On the sectoral front, traders were seen pilling up position in Power, Capital Goods, Realty, Industrials and PSU, while selling was witnessed in FMCG, Bankex and Auto.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight. Back home, in the stock specific development,  GMR Power and Urban Infra surged as it is planning to raise funds upto Rs 160 crore (approximate) by way of issuance of Non-Convertible Debentures (NCDs) on Private Placement basis.    

The BSE Sensex is currently trading at 72958.20, down by 146.41 points or 0.20% after trading in a range of 72822.66 and 73301.47. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.65%, while Small cap index up by 0.90%.

The top gaining sectoral indices on the BSE were Power up by 1.67%, Capital Goods up by 1.24%, Realty up by 1.19%, Industrials up by 1.08% and PSU up by 1.07%, while FMCG down by 0.33%, Bankex down by 0.31%, Auto down by 0.20% were the few losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.28%, NTPC up by 1.03%, Power Grid up by 0.86%, HCL up by 0.71% and Tata Steel up by 0.67%. On the flip side, Sun Pharma down by 1.35%, HDFC Bank down by 1.10%, Asian Paints down by 1.00%, Tata Motors down by 0.92% and JSW Steel down by 0.80% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that the development of Chabahar Port will help India enhance its logistical capabilities and expand its trade routes to Central Asia and for that there is a need to ensure necessary infrastructure, and processes to effectively manage the cargo flow at the port. It suggested that the government stick to the fact that the Chabahar Port is not under international sanctions despite being Iran's only ocean port as despite the strategic advantages, the project's success is intricately tied to the complex geopolitical environment it operates within.

According to the GTRI, Chabahar Port, comprising the Shahid Kalantari and Shahid Beheshti terminals, is strategically located about 170 km west of Pakistan's Gwadar Port. It offers an alternative maritime route to the congested Strait of Hormuz. Chabahar is also an integral component of the International North-South Transport Corridor (INSTC), a 7,200-km multi-modal transportation route connecting India with Iran, Azerbaijan, Russia, Central Asia, and Europe. This corridor aims to reduce transit times to about 25 days -- 20 days fewer than the Suez Canal route -- and cut freight costs by 30 per cent.

On May 13, 2024, India signed a 10-year contract to operate the strategic Iranian port of Chabahar. The long-term agreement was signed by Indian Ports Global (IPGL) and the Port & Maritime Organisation of Iran. IPGL will invest about $120 million while another $250 million will be raised as debt.

The CNX Nifty is currently trading at 22177.70, down by 40.15 points or 0.18% after trading in a range of 22151.75 and 22297.55. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Cipla up by 3.92%, Coal India up by 3.11%, Mahindra & Mahindra up by 1.33%, Adani Enterprises up by 1.10% and Dr. Reddy's Lab up by 1.05%. On the flip side, Sun Pharma down by 1.47%, Britannia down by 1.44%, Bajaj Auto down by 1.30%, Eicher Motors down by 1.22% and Asian Paints down by 1.18% were the top losers.

Asian markets are trading mostly in green;  Jakarta Composite gained 81.52 points or 1.14% to 7,165.28, Nikkei 225 surged 37.27 points or 0.1% to 38,393.33 and Taiwan Weighted added 159.2 points or 0.75% to 21,145.05. However, Shanghai Composite weakened 11.53 points or 0.37% to 3,134.24 and Straits Times fell 24.16 points or 0.73% to 3,289.19.