Domestic indices remain in green in late morning deals

Domestic equity indices remained in green in late morning deals amid volatility. Buying in Ultratech Cement, Power Grid, NTPC, Axis Bank and Nestle companies’ stocks supported the markets to trade higher. Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.75-1.20%. Traders took note of private report that the commerce and industry ministry may seek more funds for startups in the forthcoming Budget, to be announced by the new government, to promote innovation in the country. On the BSE sectoral front, traders were seen pilling up positions in Utilities, Realty, Power, Telecom and Basic Materials, while selling was witnessed only in IT and TECK. 

On global front, Asian markets were trading mixed ahead of Fed and BOJ decisions this week. Back home, in the stock specific development, Wardwizard Innovations & Mobility zoomed. The surge in the stock price came after the Indian electric vehicle (EV) company, known for its Joy e-bike, said it has secured a $1.29 billion order from Beulah International Development Corporation (BEULAH), a Philippines firm.  

The BSE Sensex is currently trading at 76861.91, up by 168.55 points or 0.22% after trading in a range of 76442.51 and 77079.04. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.75%, while Small cap index up by 1.17%.

The top gaining sectoral indices on the BSE were Utilities up by 2.06%, Realty up by 1.43%, Power up by 1.42%, Telecom up by 1.39% and Basic Materials up by 1.29%, while IT down by 1.24% and TECK down by 0.83% were the few losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 3.90%, Power Grid up by 3.33%, NTPC up by 1.95%, Nestle up by 1.86% and Axis Bank up by 1.64%. On the flip side, Tech Mahindra down by 2.40%, Infosys down by 1.84%, Mahindra & Mahindra down by 1.30%, Wipro down by 1.19% and HCL down by 0.91% were the top losers.

Meanwhile, Federation of Automobile Dealers Association (FADA) has stated that the Indian Auto Retail sector achieved a modest 2.61% year-on-year (YoY) growth in May 2024. Sales of two-wheeler (2W) increased 2.5% YoY, three-wheeler (3W) rose 20% and commercial vehicle (CV) segment grew 4%, while passenger vehicles (PV) and tractor segment both saw a contraction of 1% each YoY. It noted that the two-wheeler segment grew by 2.5% YoY but declined by 6.6% MoM. Dealers reported supply constraints, lack of OEM marketing activities and impacts from extremely hot weather and elections. Positive rural demand due to expected good monsoon and improved finance availability were also noted which kept the counters ticking. 

FADA further stated that the PV segment showed 1% YoY and a 9.5% month-on-month (MoM) decline. Dealers cited the impact of elections, extreme heat and market liquidity issues as major factors. Despite better supply, some pending bookings and discount schemes, the lack of new models, intense competition and poor marketing efforts by OEMs affected sales. Additionally, increased customer postponements and low enquiries further contributed to the challenging market conditions. Due to the extreme heat, the number of walk-ins to showrooms dropped by around 18%. It added that the CV segment showed a 4% YoY growth but an 8% MoM decline. Dealers reported that elections and extreme climatic conditions heavily impacted sales. Despite growth due to a low base from last year and increased bus orders, the industry faced challenges from wholesale pressures, government policy effects, and negative market sentiment. Additionally, good movement in market loads, cement, iron ore, and coal sectors contributed positively.  

According to the FADA, the near-term outlook for the Automobile Retail is ‘cautiously optimistic’, influenced by a mix of positive and challenging factors across various segments. Post-election results are expected to bring stability and improve market sentiment, while the formation of a continued government could boost infrastructure projects and economic activities.

The CNX Nifty is currently trading at 23366.65, up by 76.50 points or 0.33% after trading in a range of 23233.05 and 23411.90. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 3.75%, Power Grid up by 3.57%, Hero MotoCorp up by 3.37%, Grasim Industries up by 3.16% and NTPC up by 2.26%. On the flip side, Tech Mahindra down by 2.41%, Infosys down by 1.80%, LTIMindtree down by 1.32%, Wipro down by 1.23% and Mahindra & Mahindra down by 1.18% were the top losers.

Asian markets were trading mixed; Jakarta Composite gained 13.32 points or 0.19% to 6,911.27 and Nikkei 225 surged 361.11 points or 0.93% to 39,045.04. However, Straits Times fell 5.43 points or 0.16% to 3,325.34 and KOSPI dropped 7.16 points or 0.26% to 2,715.51.