Benchmarks extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, as surging oil prices amid escalating tensions in the Middle East and investor anxiety ahead of the general election results, due next week weighed on markets. Traders remained cautious as data released by the government showed the ratio of cost overruns in central government projects rose to a 12-month high of 20.09% in April compared with 18.65% in the previous month. It said the anticipated cost of 1,838 projects with a value of Rs 150 crore and above, at Rs 33.2 lakh crore, was Rs 5.6 lakh crore higher than the original cost, with the ratio of delayed projects also rising compared with the previous few months. Traders overlooked report by SBI Research in which it anticipates India's GDP growth could touch 8 per cent in FY24, with strong performance across various economic indicators and favorable monsoon conditions. The report also highlights the potential impact of global economic resilience on India's growth trajectory. Despite the challenges faced by the global economy, including geopolitical tensions and extreme weather events, global growth remains resilient, supported by easing inflationary pressures and strong employment conditions. On the global front, Asian markets are trading mostly in red as investors await U.S. inflation data for insights on the Federal Reserve’s interest rate trajectory. 

The BSE Sensex is currently trading at 74699.33, down by 471.12 points or 0.63% after trading in a range of 74614.24 and 74986.22. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.31%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.33%, Utilities up by 0.24%, Power up by 0.15%, Metal up by 0.06% and Industrials up by 0.06%, while Bankex down by 1.04%, Realty down by 0.69%, Oil & Gas down by 0.63%, IT down by 0.50% and Auto down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 1.55%, Nestle up by 0.75%, Sun Pharma up by 0.32%, Bajaj Finance up by 0.11% and Tata Steel up by 0.09%. On the flip side, Ultratech Cement down by 1.57%, Axis Bank down by 1.45%, ICICI Bank down by 1.38%, HDFC Bank down by 1.20% and Tech Mahindra down by 1.13% were the top losers.

Meanwhile, in a significant move, the Reserve Bank of India (RBI) has launched three major initiatives namely the PRAVAAH (Platform for Regulatory Application, VAlidation and AutHorisation) portal, the Retail Direct Mobile App and a FinTech Repository. These three initiatives were earlier announced as part of RBI’s bi-monthly Statement on Development and Regulatory Policies in April 2023, April 2024 and December 2023 respectively.

The PRAVAAH portal will make it convenient for any individual or entity to apply online for various regulatory approvals in a seamless manner. This portal will also enhance the efficiency of various processes related to granting of regulatory approvals and clearances by the Reserve Bank. It is a secure and centralised web-based portal for any individual or entity to seek authorisation, license or regulatory approval on any reference made by it to the Reserve Bank. 

The Retail Direct Mobile App will provide retail investors a seamless and convenient access to the retail direct platform and provide ease of transacting in government securities (G-Secs). The mobile app can be downloaded from the Play Store for Android users and App Store for iOS users. The mobile app can also be downloaded using the following QR code.

Further, the Fintech Repository will contain information on Indian FinTech Sector for a better understanding of the sector from a regulatory perspective and facilitate in designing appropriate policy approaches. It aims to capture essential information about FinTech entities, their activities, technology uses, etc.

The CNX Nifty is currently trading at 22742.75, down by 145.40 points or 0.64% after trading in a range of 22719.45 and 22825.50. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 1.60%, Hindalco up by 1.09%, Nestle up by 0.82%, Eicher Motors up by 0.40% and Sun Pharma up by 0.28%. On the flip side, SBI Life Insurance down by 2.18%, HDFC Life Insurance down by 2.07%, Ultratech Cement down by 1.82%, ICICI Bank down by 1.56% and Axis Bank down by 1.55% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 277.31 points or 1.47% to 18,543.85, Jakarta Composite plunged 123.42 points or 1.73% to 7,130.21, Straits Times fell 4.4 points or 0.13% to 3,325.69, KOSPI dropped 38.14 points or 1.4% to 2,684.71, Nikkei 225 slipped 230.05 points or 0.59% to 38,625.32 and Taiwan Weighted lost 127.59 points or 0.58% to 21,730.82.

On the flip side, Shanghai Composite strengthened 9.56 points or 0.31% to 3,119.13.