Sensex, Nifty manage to hold heads above water

Despite high volatility, Indian equity benchmarks were managing to keep their heads above water in early afternoon session, with both Sensex and Nifty trading marginally higher, amid mixed cues from other Asian markets. Gains were limited, as traders got cautious, after the Reserve Bank of India (RBI) in its latest ‘Inflation Expectations Survey of Households (IESH) - May 2024’ has showed that Households’ inflation expectations for the three months and one year ahead periods increased by 20 basis points (bps) and 10 bps, respectively, but remained in single digits, while their perception on current inflation moderated by 10 bps and stood at 8.0 per cent in the latest survey round. Besides, a stronger-than-expected U.S. jobs report pushed Treasury yields higher and raised doubts about whether the Fed will be able to cut interest rates this year.

On the global front, Asian markets were trading mixed, after a measure of public opinion about the Japanese economy weakened in May to the lowest level in more than one-and-a-half years, and the outlook also weakened further. The survey data from the Cabinet Office showed that the current conditions index of the Economy Watchers' Survey, which measures the present situation of the economy, dropped to 45.7 in May from 47.4 in April. Any reading below 50 indicates pessimism. Further, this was the lowest score since August 2022, when it was 45.5.

The BSE Sensex is currently trading at 76731.00, up by 37.64 points or 0.05% after trading in a range of 76442.51 and 77079.04. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.63%, while Small cap index was up by 1.13%.

The top gaining sectoral indices on the BSE were Utilities up by 1.82%, Realty up by 1.69%, Basic Materials up by 1.39%, Power up by 1.15% and Telecom up by 1.09%, while IT down by 1.49%, TECK down by 1.07% and Auto down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 3.47%, Power Grid up by 2.99%, Nestle up by 2.19%, NTPC up by 1.90% and Axis Bank up by 1.42%. On the flip side, Tech Mahindra down by 2.83%, Infosys down by 2.12%, Wipro down by 1.55%, Mahindra & Mahindra down by 1.25% and Maruti Suzuki down by 1.07% were the top losers.

Meanwhile, a labour ministry statement said that retail inflation for industrial workers eased to 3.87 per cent in April 2024 as compared to 4.2 per cent in March this year. It noted that year-on-year inflation for the month of April, 2024 stood at 3.87 per cent as compared to 5.09 per cent in April, 2023. 

Year-on-year inflation for the month of March, 2024 stood at 4.20% as compared to 5.79 % in March, 2023. Year-on-year inflation for the month of February, 2024 stood at 4.90 per cent as compared to 6.16 per cent in February, 2023.

It further said the All-India Consumer Price Index-Industrial Workers (CPI-IW) for April, 2024 increased by 0.5 point and stood at 139.4. The index for March, 2024 decreased by 0.3 point and stood at 138.9 points. The index for February, 2024 increased by 0.3 point and stood at 139.2 points. 

The CNX Nifty is currently trading at 23333.90, up by 43.75 points or 0.19% after trading in a range of 23233.05 and 23411.90. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 3.67%, Ultratech Cement up by 3.48%, Hero MotoCorp up by 3.17%, Power Grid up by 2.97% and Nestle up by 2.19%. On the flip side, Tech Mahindra down by 2.80%, Infosys down by 2.16%, Wipro down by 1.67%, LTIMindtree down by 1.55% and Mahindra & Mahindra down by 1.39% were the top losers.

Asian markets were trading mixed; Jakarta Composite gained 8.91 points or 0.13% to 6,906.86 and Nikkei 225 surged 354.23 points or 0.91% to 39,038.16, while Straits Times fell 9.56 points or 0.29% to 3,321.21 and KOSPI dropped 21.50 points or 0.8% to 2,701.17.