Benchmarks trade flat in morning deals

Indian equity benchmarks were trading flat in morning deals, amid the lack of any immediate market moving triggers. Traders got cautious as the RBI Bulletin stated that retail inflation is gradually easing, but volatile and elevated food prices are interrupting the path of disinflation. In article on the ‘State of the Economy’, published in the June 2024 Bulletin, it said global growth was resilient in the first quarter of 2024, and many central banks have pivoted towards a less restrictive monetary policy stance in response to the fall in inflation in their economies. However, traders took support with global rating agency Fitch Ratings’ statement that India will see higher Consumer spending with elevated consumer confidence. Expectations of better than expected monsoon will support growth and make inflation less volatile. The rating agency has elevated India’s growth forecast by 20 basis point to 7.2 per cent for fiscal year 2024-25. Earlier in March Fitch has forecasted India’s growth at 7 per cent. 

On the global front, Asian markets are trading mixed, following the mixed cues from other global markets overnight, as traders largely stayed reluctant to make significant moves amid a lack of any new catalyst after a holiday on Wall Street. 

The BSE Sensex is currently trading at 77318.58, down by 19.01 points or 0.02% after trading in a range of 77100.36 and 77588.31. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.87%.

The top gaining sectoral indices on the BSE were Basic Materials up by 1.28%, Metal up by 1.23%, Oil & Gas up by 1.21%, Energy up by 1.16% and Realty up by 1.11%, while Healthcare down by 0.34%, TECK down by 0.23%, Auto down by 0.15%, IT down by 0.12% and Consumer Durables down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.43%, Tata Steel up by 0.97%, JSW Steel up by 0.97%, Kotak Mahindra Bank up by 0.95% and Hindustan Unilever up by 0.60%. On the flip side, Sun Pharma down by 1.72%, Power Grid Corporation down by 1.42%, Mahindra & Mahindra down by 1.35%, Bajaj Finance down by 1.11% and Bajaj Finserv down by 1.03% were the top losers.

Meanwhile, the commerce ministry in its latest data has said that India's seafood exports have recorded a growth of 3 per cent in volume terms, but a decline of about 8 per cent in value during the last financial year (FY24). Exports in volume terms have increased to 17,81,602 MT (tonnes) worth $7.38 billion during 2023-24 as against 17,35,286 MT ($8.0 billion) in 2022-23.

It stated that frozen shrimp, with exports of $4.88 billion, retained its position as the top item in the seafood export basket, accounting for a share of 40.19 per cent in quantity and 66.12 per cent in dollar terms. The US was the largest market for frozen shrimp (2,97,571 MT) in the last fiscal. It was followed by China (1,48,483 MT), the European Union (89,697 MT), Southeast Asia (52,254 MT), Japan (35,906 MT), and the Middle East (28,571 MT). The ministry said that black tiger shrimp exports too recorded healthy growth.

D V Swamy, Chairman of Marine Products Export Development Authority (MPEDA), said ‘India recorded an all-time high export in terms of volume by shipping 17,81,602 MT of seafood...despite the several challenges in its major export markets like the USA, European Union and the UK.’

The CNX Nifty is currently trading at 23531.90, up by 15.90 points or 0.07% after trading in a range of 23442.60 and 23587.70. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.86%, Hindalco up by 1.63%, Reliance Industries up by 1.43%, Kotak Mahindra Bank up by 1.32% and Adani Ports &SEZ up by 1.23%. On the flip side, Sun Pharma down by 1.71%, Mahindra & Mahindra down by 1.36%, HDFC Life Insurance down by 1.33%, Power Grid Corporation down by 1.31% and Cipla down by 1.11% were the top losers.

Asian markets are trading mixed; Jakarta Composite gained 47.67 points or 0.71% to 6,774.59, KOSPI increased 11.05 points or 0.4% to 2,808.38, Nikkei 225 surged 16.29 points or 0.04% to 38,587.05 and Taiwan Weighted added 100.43 points or 0.43% to 23,309.97.

On the flip side, Shanghai Composite weakened 8.29 points or 0.28% to 3,009.76, Hang Seng declined 88.86 points or 0.48% to 18,341.53 and Straits Times fell 9.11 points or 0.28% to 3,294.89.