Domestic indices trim some losses in late morning deals

Domestic equity markets trimmed some of their losses but continued to trade in red in late morning deals on account of hectic selling in HDFC Bank, Titan, Mahindra & Mahindra and TCS companies’ stocks. Weak cues from other Asian markets weighed on the domestic sentiments. Rising crude oil prices also weighed on the sentiments. Traders largely stayed reluctant to make significant moves amid a lack of any new catalyst. They now awaited the release of crucial US monthly jobs report later in the day for cues on the outlook for interest rates. However, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.30-0.65%. On the BSE sectoral front, traders were seen pilling up positions in Capital Goods, Industrials, PSU, Healthcare and Oil & Gas, while selling was witnessed in Bankex, Realty, Consumer Durables and Auto.

On the global front, Asian markets were trading mostly in red as Japan’s household spending for May unexpectedly dipped 1.8% in real terms compared to the same period last year. Street had estimated a 0.1% rise. Back home, in the stock specific development, Raymond soared after announcing demerger of its real estate business.

The BSE Sensex is currently trading at 79734.71, down by 314.96 points or 0.39% after trading in a range of 79478.96 and 79876.25. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.64%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.35%, Industrials up by 1.32%, PSU up by 1.16%, Healthcare up by 0.88% and Oil & Gas up by 0.86%, while Bankex down by 0.58%, Realty down by 0.45%, Consumer Durables down by 0.32%, Auto down by 0.25% and Consumer Disc down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.58%, SBI up by 1.16%, Hindustan Unilever up by 0.92%, Axis Bank up by 0.91% and Reliance Industries up by 0.89%. On the flip side, HDFC Bank down by 4.36%, Titan down by 2.07%, Mahindra & Mahindra down by 1.81%, TCS down by 0.77% and Indusind Bank down by 0.67% were the top losers.

Meanwhile, Rating agency ICRA in its latest report has said that the cement sector has witnessed a muted growth of 2-3 per cent in the first quarter of current fiscal (Q1FY25) on account of a slowdown in construction activity because of the Lok Sabha polls. However, the overall volumes for the FY2024-25 are likely to expand by 7-8 per cent driven by a healthy demand from the infrastructure and housing sectors.

The report said nevertheless, the government's focus on infrastructure projects, sanction of additional houses under the Pradhan Mantri Awas Yojana (PMAY), and the industrial capex is expected to meaningfully improve cement volume offtake in H2 FY2025. It also projects further consolidation in the cement industry by the top players to increase their capacity. Besides, the sector is also expected to continue its organic growth in the medium term as makers continue to invest to expand capacity. While organic growth is expected to continue in the medium term, cement companies are also preferring the inorganic route to boost capacities rapidly.

ICRA estimates that the market share of the top five cement companies witnessed a steep rise to 54 per cent as of March 2024 from 45 per cent as of March 2015 and projects it to further increase to 58-59 per cent by March 2026, resulting in consolidation in the cement industry. Moreover, the cement companies may also witness an improvement in their operating profit by 1-3 per cent due to softened raw materials prices.

The CNX Nifty is currently trading at 24243.45, down by 58.70 points or 0.24% after trading in a range of 24168.85 and 24262.05. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.47%, Divi's Lab up by 2.35%, Cipla up by 1.93%, Larsen & Toubro up by 1.61% and Hindalco up by 1.32%. On the flip side, HDFC Bank down by 4.38%, Titan down by 2.11%, Mahindra & Mahindra down by 1.85%, TCS down by 0.73% and Tata Steel down by 0.71% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 165.91 points or 0.92% to 17,862.37, Shanghai Composite weakened 25.64 points or 0.87% to 2,931.93, Straits Times fell 30.12 points or 0.88% to 3,409.76, Nikkei 225 slipped 81.38 points or 0.2% to 40,832.27 and Taiwan Weighted lost 9.76 points or 0.04% to 23,512.77. However, Jakarta Composite gained 30.23 points or 0.42% to 7,251.12 and KOSPI increased 34.70 points or 1.23% to 2,859.64.