Benchmarks trade lower in late morning deals

Indian equity benchmarks erased initial gains and were trading lower in late morning deals, due to losses in Basic Materials, Realty and Banking stocks. Traders turned cautious as report by the United Nations Conference on Trade and Development (UNCTAD) stated that Foreign Direct Investment (FDI) flows to India plummeted by 43 per cent in 2023 to $28 billion amid a global decline of 2 per cent. However, losses remained capped as traders took some support with the latest monthly payroll data released by the Employees’ Provident Fund Organisation (EPFO) showing that the number of fresh formal jobs generated in a month increased to a seven-month high in April, signalling a recovery in the formal labour market in the country. Sectorally, metal stocks remained in limelight as CRISIL report stated that in a shift from its status as a net exporter of steel since fiscal 2017, India has become a net importer in fiscal 2024, recording an overall steel trade deficit of 1.1 million tonnes (MT). On the global front, Asian markets are trading mostly in red following the mixed cues from Wall Street overnight, as the markets struggle for direction as traders digest mixed economic data from the region and US. 

The BSE Sensex is currently trading at 77220.00, down by 258.93 points or 0.33% after trading in a range of 77204.33 and 77808.45. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.02%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were TECK up by 1.32%, IT up by 1.27%, Telecom up by 1.14%, Healthcare up by 0.49% and Auto up by 0.08%, while Basic Materials down by 0.74%, Realty down by 0.73%, Bankex down by 0.72%, Capital Goods down by 0.67% and FMCG down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.09%, Infosys up by 1.47%, TCS up by 1.37%, Tech Mahindra up by 0.84% and HCL Technologies up by 0.74%. On the flip side, Tata Steel down by 1.67%, Hindustan Unilever down by 1.57%, Nestle down by 1.35%, Larsen & Toubro down by 1.30% and HDFC Bank down by 1.27% were the top losers.

Meanwhile, CRISIL in its latest report has said that in a shift from its status as a net exporter of steel since fiscal 2017, India has become a net importer in fiscal 2024 (FY24), recording an overall steel trade deficit of 1.1 million tonnes (MT). The development highlights a dynamic change in the country’s steel trade landscape, largely influenced by surging domestic demand and increased imports from major steel-producing nations.

It stated India’s imports of finished steel reached 8.3 MT in fiscal 2024, marking a substantial 38 per cent increase year-on-year. The primary contributors to this surge in imports were China, South Korea, Japan, and Vietnam. Chinese steel imports alone accounted for 2.7 MT, while South Korea and Japan exported 2.6 MT and 1.3 MT of steel to India, respectively.

Moreover, it said imports from Vietnam surged by a staggering 130 per cent on-year, positioning Vietnam as a significant steel exporter to India and reversing its previous status as a major importer of Indian steel. The influx of steel product imports has outpaced India’s export growth. Despite a 11.5 per cent increase in exports of finished steel, totalling around 7.5 MT in fiscal 2024, the surge was insufficient to offset the growing volume of imports.

The CNX Nifty is currently trading at 23546.20, down by 20.80 points or 0.09% after trading in a range of 23541.10 and 23667.10. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.06%, LTIMindtree up by 1.76%, Infosys up by 1.40%, TCS up by 1.34% and Hero MotoCorp up by 1.28%. On the flip side, Tata Steel down by 1.61%, Hindustan Unilever down by 1.56%, HDFC Bank down by 1.43%, Nestle down by 1.32% and Bajaj Finance down by 1.27% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 339.75 points or 1.85% to 17,995.57, Shanghai Composite weakened 16.99 points or 0.57% to 2,988.45, KOSPI dropped 21.54 points or 0.77% to 2,786.09, Nikkei 225 slipped 13.96 points or 0.04% to 38,619.06 and Taiwan Weighted lost 140.49 points or 0.6% to 23,265.61.

On the flip side, Jakarta Composite gained 113.77 points or 1.64% to 6,933.09 and Straits Times rose 6.91 points or 0.21% to 3,306.91.