Benchmarks remain in red in morning deals

Indian equity benchmarks remained in red in morning deals, due to losses in IT, FMCG and Realty stocks. Sentiments remained weak as volatility continued amid uncertainty over the Lok Sabha elections. Some concern also came with a private report that demand-supply mismatches could keep prices of pulses elevated until the new crop starts arriving in the market in October, putting further pressure on already high food inflation. However, losses remain capped as traders took some support as India Ratings and Research expects the country's GDP growth rate for the March quarter at 6.2 per cent and around 6.9-7 per cent for the 2023-24 fiscal. The Indian economy grew 8.2 per cent in the June quarter, 8.1 per cent in the September quarter and 8.4 per cent in the December quarter of 2023-24. On the sectoral front, Gold and jewellery related stocks remained in limelight as the Gem and Jewellery Export Promotion Council (GJEPC) said the export of plain gold jewellery continues to soar, marking 27.45 per cent increase, reaching $342.27 million in April 2024, compared to $268.56 million in the same month the previous year. On the flip side, Asian markets are trading mostly in red amid elevated geopolitical tensions and lingering uncertainty over the timing and pace of Fed rate cuts.

The BSE Sensex is currently trading at 73839.62, down by 166.32 points or 0.22% after trading in a range of 73775.46 and 73987.47. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.12%, while Small cap index was down by 0.13%.

The top gaining sectoral indices on the BSE were Metal up by 2.40%, PSU up by 1.72%, Utilities up by 1.23%, Power up by 1.06% and Capital Goods up by 0.92%, while IT down by 0.70%, FMCG down by 0.68%, Realty down by 0.45%, TECK down by 0.45% and Auto down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 2.77%, SBI up by 1.74%, Power Grid Corporation up by 1.66%, Tata Steel up by 1.61% and Asian Paints up by 0.95%. On the flip side, Nestle down by 1.85%, Mahindra & Mahindra down by 0.98%, Hindustan Unilever down by 0.97%, Axis Bank down by 0.96% and Infosys down by 0.95% were the top losers.

Meanwhile, Automotive Tyre Manufacturers' Association (ATMA) said that India has sufficient tyre manufacturing capacity and imports should not be liberalised through free trade agreements (FTAs) by way of duty concessions. It has said to government that the automotive tyres rank at the forefront of those sectors where domestic manufacturing capabilities can render imports unnecessary. It mentioned this was in response to the government seeking feedback about sectors in which India has capabilities to be self-reliant so that upcoming FTAs could be drafted while safeguarding the interests of domestic industry.

It has pointed out that imports should not be liberalised through FTAs by way of duty concessions. India's domestic tyre industry, among the largest in the world, has an annual production exceeding 200 million units across various categories including two-wheelers, passenger vehicles, commercial vehicles, and off-road vehicles. Further, it said, despite adequate manufacturing capacities, over Rs 2,000 crore worth of tyres were imported in the country in the first three quarters of FY24, an increase of 27 per cent over the same period in the preceding year.

ATMA Chairman Arnab Banerjee said over the last few years, the tyre sector has witnessed substantial investments, by leading manufacturers allocating over Rs 35,000 crore towards capacity expansion, technology upgrades, and research and development. As the new capacities go on stream, it is important to meet the demand from domestic manufacturing rather than importing tyres. He further said the domestic tyre industry is today geared to meet all the requirements of domestic and international auto OEMs (original equipment makers) by way of design, development and ensuring regular supply of tyres for all categories and types of vehicles manufactured in the country.

The CNX Nifty is currently trading at 22479.50, down by 22.50 points or 0.10% after trading in a range of 22404.55 and 22509.05. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.51%, Hindalco up by 2.85%, JSW Steel up by 2.71%, BPCL up by 2.11% and Adani Ports &SEZ up by 1.99%. On the flip side, Nestle down by 1.96%, TCS down by 1.00%, Hindustan Unilever down by 0.98%, Mahindra & Mahindra down by 0.95% and Infosys down by 0.89% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 401.89 points or 2.09% to 19,234.33, Jakarta Composite plunged 41.85 points or 0.58% to 7,224.84, Shanghai Composite weakened 13.12 points or 0.42% to 3,158.03, Straits Times fell 12.58 points or 0.38% to 3,301.47, KOSPI dropped 16.50 points or 0.6% to 2,725.64, Nikkei 225 slipped 46.01 points or 0.12% to 39,023.67 and Taiwan Weighted lost 52.35 points or 0.25% to 21,219.28.