Markets trade flat with positive bias in late morning deals

Domestic equity indices traded flat with positive bias in late morning deals amid volatility. Buying in HDFC Bank, Ultratech Cement, Tata Motors, Bharti Airtel and Larsen & Toubro companies’ stocks helped the markets to trade above neutral lines. Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.40-0.50%. Traders took note of S&P Global Rating’s statement that India can get rating support over time if it utilises the highest-ever dividend of over Rs 2.11 trillion received from the Reserve Bank to reduce fiscal deficit.  The RBI board has decided to pay a record Rs 2.11 trillion dividend to the government for the fiscal ended March 2024, more than double of what was budgeted expectation of Rs 1.02 trillion. On the BSE sectoral front, traders were seen pilling up position in Telecom, Capital Goods, PSU, Industrials and Oil & Gas, while selling was witnessed in Healthcare, Realty, FMCG, IT  and Auto.

On the global front, Asian markets traded in red following negative cues from the US markets overnight. Traders overlooked report that Japan’s core inflation - which strips out fresh food and energy - eased to 2.2% from 2.6% in March, in line with expectations. Headline inflation slowed to 2.5%, down from March’s 2.7% figure. Back home, in the stock specific development, Adani Ports fell on profit taking after rising sharply in the previous session.

The BSE Sensex is currently trading at 75459.57, up by 41.53 points or 0.06% after trading in a range of 75244.22 and 75582.28. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.48%.

The top gaining sectoral indices on the BSE were Telecom up by 2.80%, Capital Goods up by 1.55%, PSU up by 1.24%, Industrials up by 1.11% and Oil & Gas up by 0.82%, while Healthcare down by 0.37%, Realty down by 0.35%, FMCG down by 0.32%, IT down by 0.19% and Auto down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.17%, HDFC Bank up by 1.04%, Bharti Airtel up by 0.95%, Tata Motors up by 0.79% and Larsen & Toubro up by 0.69%. On the flip side, TCS down by 0.90%, Sun Pharma down by 0.71%, ICICI Bank down by 0.59%, ITC down by 0.46% and Asian Paints down by 0.43% were the top losers.

Meanwhile, rating agency ICRA has said that state-owned National Highways Authority of India’s (NHAI) targeted asset monetisation of road assets could fetch the government up to Rs 60,000 crore in the current fiscal year (FY25). In April 2024, the NHAI had released an indicative list of 33 road assets it plans to monetise in FY2025, through a mix of toll-operate-transfer (TOT) and sale to the NHAI's Infrastructure Investment Trust (InvIT).

The report said these assets are spread across 12 states, cumulatively spanning nearly 2,750 km and with an annual toll collection of Rs 4,931 crore. ICRA estimates a monetisation potential of Rs 53,000 crore to Rs 60,000 crore from the sale of 33 road assets through TOT/ InvIT mode. It noted that NHAI intends to club the 33 identified assets into large (more than Rs 6,000 crore), medium (about Rs 3,000 crore - Rs 4,000 crore) and smaller bundles (Rs 1,000-3,000 crore), for different types of investors. 

It further stated that under the government's National Monetisation Pipeline (NMP), road sector monetisation was expected to account for Rs 1.6 lakh crore, viz. 27 per cent of total monetisation during FY2022-FY2025. In case the identified 33 assets garner the estimated Rs 53,000 crore to Rs 60,000 crore of monetisation in FY2025, the achievement against the NMP target could end-up between 65 per cent to 71 per cent.

The CNX Nifty is currently trading at 22975.25, up by 7.60 points or 0.03% after trading in a range of 22908.00 and 23004.05. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 1.96%, BPCL up by 1.10%, Ultratech Cement up by 1.07%, HDFC Bank up by 1.02% and Bharti Airtel up by 0.86%. On the flip side, Apollo Hospital down by 1.44%, Shriram Finance down by 1.15%, Tata Consumer down by 1.13%, TCS down by 0.83% and Bajaj Auto down by 0.74% were the top losers.

Asian markets are trading in red; Hang Seng declined 294.73 points or 1.56% to 18,573.98, Shanghai Composite weakened 13.69 points or 0.44% to 3,102.70, Straits Times fell 13.69 points or 0.41% to 3,308.93, KOSPI dropped 33.39 points or 1.23% to 2,688.42, Nikkei 225 slipped 470.5 points or 1.2% to 38,632.72, Taiwan Weighted lost 33.62 points or 0.16% to 21,573.81