Sensex, Nifty turn negative in early afternoon session

In a high volatile session, Indian equity benchmarks turned negative in early afternoon session, with both Sensex and Nifty trading lower, on the back of selling at Banking and Consumer Durables counters despite positive cues from other Asian markets. Sentiments were pessimistic, as the Indian government has raised the windfall tax on petroleum crude to 6,000 rupees per metric ton from 3,250 rupees, with effect from July 2. The Special Additional Excise Duty (SAED) on the export of diesel, petrol, and ATF is to continue at nil. However, losses were limited, as the gross Goods and Services Tax (GST) collection surged 8 per cent to Rs 1.74 lakh crore in June 2024 as compared to Rs 1.61 lakh crore mopped up in June 2023, reflecting a buoyant economy, with businesses demonstrating commendable self-compliance.

On the global front, Asian markets were trading mostly in green, after the manufacturing sector in South Korea continued to expand in June, and at a faster pace, with a manufacturing PMI score of 52.0. That's up from 51.6 in May, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex is currently trading at 79407.11, down by 69.08 points or 0.09% after trading in a range of 79236.74 and 79855.87. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.74%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were IT up by 1.16%, TECK up by 0.77%, Realty up by 0.72%, Energy up by 0.24% and Oil & Gas up by 0.21%, while Bankex down by 1.11%, Consumer Durables down by 0.94%, PSU down by 0.80%, Auto down by 0.77% and Power down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.20%, Larsen & Toubro up by 1.99%, HDFC Bank up by 1.42%, HCL Tech. up by 1.34% and TCS up by 0.57%. On the flip side, Kotak Mahindra Bank down by 3.47%, Tata Motors down by 1.95%, Indusind Bank down by 1.78%, Axis Bank down by 1.62% and ICICI Bank down by 1.59% were the top losers.

Meanwhile, the coal ministry said that the Centre has adequate coal to meet the requirements of domestic thermal power plants (TTPs). The coal stocks at domestic TPPs as on June 29, 2024 stood at 44.46 million tonnes (MT), which is sufficient to meet the requirements of 18.5 days as per present level of consumption. This stock position is 33 per cent higher over stock position of same time during last year. Coal production grew 10.58 per cent in the June quarter, and supply of coal saw a rise of 8.50 per cent. 

Keeping in view the monsoon effect in coal production, coal ministry has ensured 98.67 MT stock availability at the pithead of mines (including coal in transit) as on June 30, 2024, which is 33.5 per cent higher over last year's position. Currently, the stock availability at the TPP end is 68 per cent of the normative requirement, which was about 50 per cent during the same period of last year.

During 2023-24, there was no scarcity of coal at domestic TPPs. The coal stock at TPPs, as on March 31 2024, was over 47 MT. This financial year (FY25), the coal ministry is planning to maintain similar high stock at TPPs end as well as at mine pithead. As on June 29, 2024, there is also an increase in the number of rakes/days by 10.54 per cent over the same period of last year, it is thus evident that adequate stock is available to meet the monsoon requirements of all domestic coal-based, power plants. 

The CNX Nifty is currently trading at 24109.85, down by 32.10 points or 0.13% after trading in a range of 24073.65 and 24236.35. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.70%, Infosys up by 2.09%, Larsen & Toubro up by 2.01%, HDFC Bank up by 1.34% and HCL Tech. up by 1.20%. On the flip side, Kotak Mahindra Bank down by 3.39%, Shriram Finance down by 2.89%, Tata Motors down by 1.92%, Indusind Bank down by 1.74% and HDFC Life Insurance down by 1.67% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 42.65 points or 0.24% to 17,761.26, Jakarta Composite gained 2.52 points or 0.04% to 7,142.15, Shanghai Composite strengthened 2.28 points or 0.08% to 2,997.01, Straits Times rose 24.21 points or 0.72% to 3,362.78 and Nikkei 225 surged 443.63 points or 1.11% to 40,074.69, while KOSPI dropped 23.45 points or 0.84% to 2,780.86 and Taiwan Weighted lost 179.2 points or 0.78% to 22,879.37.