Markets trade slightly in red in early deals

Indian equity markets have made cautious start and are trading slightly in red in early morning deals on Wednesday amid mixed cues from the other Asian markets. Selling in  HDFC Bank, Mahindra & Mahindra, Tata Steel, Indusind Bank and JSW Steel companies' stocks dragged the markets to trade below the neutral lines. Traders were cautious as private report said a sluggish monsoon leading to subpar kharif sowing could queer the pitch further for food inflation, which already remains elevated. Traders ignored report that Shaktikanta Das, Reserve Bank of India Governor, said India is at the threshold of a major structural shift in its growth trajectory. He added that India is moving ahead towards 8 per cent GDP growth in a sustained manner, adding that the average growth India recorded in the last three years is 8.3 per cent. Defence industry related stock were in focus as CRISIL Ratings in its latest report has said that the revenue of private defence companies is set to grow by 20 per cent during the current financial year 2024-25.

On the global front, Asian markets are trading mixed on Wednesday as Australia’s inflation rate climbed for a third straight month and semiconductor-related stocks jumped. The US markets ended mostly higher on Tuesday amid Nvidia rallied nearly 7 percent, rebounding after recent losses. Back home, on the BSE sectoral front, traders were seen pilling up positions in Industrials, Telecom and Capital Goods, while selling was witnessed in Metal, Realty, Auto, Consumer Disc and Healthcare. 

The BSE Sensex is currently trading at 77949.54, down by 103.98 points or 0.13% after trading in a range of 77947.80 and 78188.16. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.45%, while Small cap index up by 0.05%.

The top gaining sectoral indices on the BSE were Industrials up by 0.07%, Telecom up by 0.02% and Capital Goods up by 0.01%, while Metal down by 1.29%, Realty down by 0.84%, Auto down by 0.70%, Consumer Disc down by 0.56% and Healthcare down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.17%, ICICI Bank up by 0.97%, Larsen & Toubro up by 0.68%, Adani Ports up by 0.61% and NTPC up by 0.60%. On the flip side, Mahindra & Mahindra down by 1.34%, Tata Steel down by 1.17%, HDFC Bank down by 0.84%, Indusind Bank down by 0.70% and JSW Steel down by 0.53% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has asserted that the high interest rates are not impeding growth, and made it clear that the monetary policy will unambiguously focus on getting down inflation going forward.

Moreover, he said the country is at the threshold of a major structural shift in its growth trajectory and is moving towards a path where 8 per cent real GDP growth can be sustained on a yearly basis. He stated ‘Normally if growth is well sustained, if you’ve good growth, then it is a clear sign that your monetary policy and your interest rates are not acting as an impediment to growth.’

He said RBI’s nowcasting team is projecting a GDP growth number at 7.4 per cent for the June quarter, which is higher than the central bank’s own estimate of 7.3 per cent, and added that he is confident of the economy growing at the RBI estimated 7.2 per cent for FY25.

The CNX Nifty is currently trading at 23695.90, down by 25.40 points or 0.11% after trading in a range of 23689.30 and 23749.50. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.33%, ICICI Bank up by 1.01%, LTIMindtree up by 1.00%, NTPC up by 0.64% and Larsen & Toubro up by 0.62%. On the flip side, Apollo Hospital down by 1.48%, Hindalco down by 1.43%, Mahindra & Mahindra down by 1.30%, Tata Steel down by 1.17% and Hero MotoCorp down by 1.03% were the top losers.

Asian markets are trading mixed; Jakarta Composite gained 40.43 points or 0.59% to 6,923.13, KOSPI increased 9.65 points or 0.35% to 2,784.04, Nikkei 225 surged 540.57 points or 1.38% to 39,713.72 and Taiwan Weighted added 22.27 points or 0.1% to 22,898.24. However, Straits Times fell 2.42 points or 0.07% to 3,323.86, Shanghai Composite weakened 9.41 points or 0.32% to 2,940.59 and Hang Seng declined 13.35 points or 0.07% to 18,059.55.