Domestic indices remain in red in early noon session

Domestic equity indices remained in red and were trading slightly in red in early noon session on weak cues from global markets. Selling in Hindustan Unilever, Ultratech Cement, Tata Steel, HDFC Bank and Larsen & Toubro companies’ stocks dragged the markets to trade below the neutral lines. Traders were cautious as Minneapolis Fed President Neel Kashkari said that it will probably take a year or two to get inflation back to the central bank's 2 percent target. Traders overlooked report that the headline HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - increased from 60.5 in May to 60.9 in June. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK, Telecom, Consumer Durables and Power, while selling was witnessed in Oil & Gas, Bankex, Realty, FMCG and Basic Materials. 

On the global front, Asian markets were trading mostly in red after Japan’s headline inflation rate rose to 2.8% in May, higher than April’s figure of 2.5%. Back home, in the stock specific development, Time Technoplast zoomed on getting final approval from PESO for manufacturing of Type-IV Composite Cylinders

The BSE Sensex is currently trading at 77329.67, down by 149.26 points or 0.19% after trading in a range of 77131.82 and 77808.45. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.44%.

The top gaining sectoral indices on the BSE were IT up by 1.61%, TECK up by 1.61%, Telecom up by 1.47%, Consumer Durables up by 1.26% and Power up by 0.78%, while Oil & Gas down by 0.64%, Bankex down by 0.63%, Realty down by 0.47%, FMCG down by 0.47% and Basic Materials down by 0.41% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.07%, Infosys up by 1.76%, Wipro up by 1.45%, NTPC up by 1.30% and TCS up by 1.29%. On the flip side, Hindustan Unilever down by 1.65%, Ultratech Cement down by 1.32%, Tata Steel down by 1.29%, HDFC Bank down by 1.26% and Larsen & Toubro down by 1.14% were the top losers.

Meanwhile, Credit rating agency ICRA in its latest report has said that the all-India thermal plant load factor (PLF) level or capacity utilisation is expected to remain healthy at 70 per cent in FY2025, from 69 per cent in FY2024, on power demand growth of 6 per cent. ICRA's outlook for the thermal power segment is ‘Stable’, following the improvement in the thermal PLF and healthy demand growth, thereby improving visibility on signing of new power purchase agreements (PPAs). 

Also, ICRA stated that the implementation of the Late Payment Surcharge (LPS) scheme enabled an improvement in payment discipline from state distribution utilities (discoms) to power generation companies from August 2022. However, it stated that ICRA's outlook for the power distribution segment remains ‘Negative’ amid limited tariff hikes and continued loss-making operations. 

The rating agency projects the full-year demand growth for FY2025 at 6 per cent, slightly lower than its expectation for the GDP growth for this fiscal (6.8 per cent). While this trails the growth of 7.6 per cent reported in FY2024, it remains higher than the historical average seen over the past 10 years. The healthy growth in electricity demand over the past three years has necessitated a rethink on thermal capacity addition, with the government looking to encourage new thermal power projects, including private sector participation.  

The CNX Nifty is currently trading at 23540.75, down by 26.25 points or 0.11% after trading in a range of 23491.50 and 23667.10. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were LTIMindtree up by 2.41%, Bharti Airtel up by 2.11%, Infosys up by 1.75%, Hindalco up by 1.52% and Wipro up by 1.43%. On the flip side, Hindustan Unilever down by 1.71%, Tata Steel down by 1.31%, HDFC Bank down by 1.28%, Ultratech Cement down by 1.28% and Adani Enterprises down by 1.27% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 281.27 points or 1.56% to 18,054.05, KOSPI dropped 21.74 points or 0.78% to 2,785.89, Nikkei 225 slipped 36.55 points or 0.09% to 38,596.47, Taiwan Weighted lost 152.71 points or 0.66% to 23,253.39 and Shanghai Composite weakened 5.71 points or 0.19% to 2,999.73. However, Jakarta Composite gained 113.77 points or 1.64% to 6,933.09 and Straits Times rose 9.76 points or 0.29% to 3,309.76.