Indian markets trade in red in early deals on Thursday

Indian equity markets have made negative start and are trading in red in early deals on Thursday amid weak cues from other Asian markets. Selling in Mahindra & Mahindra, Larsen & Toubro, Tech Mahindra, Bharti Airtel and HCL companies’ stocks dragged the markets lower. There were some cautiousness in the markets amid foreign fund outflows. Foreign institutional investors (FIIs) offloaded shares worth Rs 3,535.43 crore on June 26. However, losses remain capped as the National Council of Applied Economic Research (NCAER) has said that India's economy is set to achieve significant growth, with projections nearing 7.5% for the current fiscal year (FY25). On the BSE sectoral front, traders were seen pilling up positions in Basic Materials, Metal, Healthcare, Power and Utilities, while IT , TECK, Auto, Bankex and FMCG.

On the global front, Asian markets were trading mostly in red after the Japanese yen weakened to a near 38-year low late Wednesday, hitting 160.82 against the U.S. dollar. The yen last breached the 160 level against the dollar two months ago, prompting the Japanese government to prop it up in the country’s first currency intervention since 2022. The US markets ended higher on Wednesday after a choppy trading session, with investors holding their cards close to the vest ahead of a presidential debate and an inflation report closely watched by Federal Reserve policy makers. Back home, in the stock specific development, KEC International zoomed after it has secured new orders worth Rs 1,025 crore for its T&D and cables business. 

The BSE Sensex is currently trading at 78505.50, down by 168.75 points or 0.21% after trading in a range of 78467.34 and 78771.64. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.46%, while Small cap index up by 0.35%.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.99%, Metal up by 0.49%, Healthcare up by 0.40%, Power up by 0.31% and Utilities up by 0.28%, while IT down by 0.62%, TECK down by 0.60%, Auto down by 0.53%, Bankex down by 0.26% and FMCG down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 5.53%, JSW Steel up by 1.54%, NTPC up by 1.05%, Tata Steel up by 1.01% and Kotak Mahindra Bank up by 0.61%. On the flip side, Mahindra & Mahindra down by 1.31%, Larsen & Toubro down by 1.10%, Tech Mahindra down by 1.03%, HCL down by 1.02% and Bharti Airtel down by 0.78% were the top losers.

Meanwhile, the National Council of Applied Economic Research (NCAER) has said that India's economy is set to achieve significant growth, with projections nearing 7.5% for the current fiscal year (FY25).

The NCAER noted that high-frequency indicators demonstrate the resilience of India's domestic economy, prompting upward revisions in growth projections for the upcoming fiscal year by various agencies. The expected growth range for the year spans between 7.2% and 6.2%.

Poonam Gupta, the director general of NCAER, emphasized that gross domestic product (GDP) growth during 2024-25 could exceed 7%, buoyed by robust economic activity observed in the first quarter, a focused investment policy, and macroeconomic stability. She also highlighted the favorable global environment, the peaking inflation, and ongoing efforts to address food price challenges through strategic policy frameworks.

The CNX Nifty is currently trading at 23817.35, down by 51.45 points or 0.22% after trading in a range of 23805.40 and 23887.45. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 5.78%, Dr. Reddy's Lab up by 2.36%, Grasim Industries up by 1.87%, JSW Steel up by 1.37% and Tata Steel up by 0.79%. On the flip side, Mahindra & Mahindra down by 1.48%, Tech Mahindra down by 1.33%, Apollo Hospital down by 1.20%, HCL down by 1.07% and Wipro down by 1.02% were the

Asian markets were trading mostly in red; Hang Seng declined 338 points or 1.87% to 17,751.93, Shanghai Composite weakened 15.14 points or 0.51% to 2,957.39, KOSPI dropped 14.02 points or 0.5% to 2,778.03, Nikkei 225 slipped 399.98 points or 1.01% to 39,267.09 and Taiwan Weighted lost 89.51 points or 0.39% to 22,897.18. However, Jakarta Composite gained 49.14 points or 0.71% to 6,954.78 and Straits Times rose 11.53 points or 0.35% to 3,343.23.