Benchmarks slip into red in morning deals

Indian equity benchmarks erased initial gains and slipped into red in morning deals, as traders remained on sidelines ahead of the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out on July 12. Traders also awaited the onset of a new earnings season for domestic cues, with Tata Consultancy Services (TCS) - the country's largest IT company - scheduled to report its financial results for the April-June period on Thursday. Some concern also came as Reserve Bank of India (RBI) Deputy Governor M Rajeshwar Rao has flagged concerns over quality of disclosures made by some NBFCs and urged the auditing community to ensure that entities provide appropriate qualitative information to depositors as well as other stakeholders. However, losses remain capped as some support came with a State Bank of India (SBI) report showing that between FY14 and FY23, India generated 125 million jobs, which is 4.3 times more than the preceding decadal period of FY04-FY14. On the global front, Asian markets are trading higher after a rally in the world’s largest tech stocks lifted US and global shares to new highs ahead of inflation data due later Thursday.

The BSE Sensex is currently trading at 79700.25, down by 224.52 points or 0.28% after trading in a range of 79643.05 and 80170.09. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Metal up by 0.54%, PSU up by 0.42%, IT up by 0.37%, Consumer Durables up by 0.27% and Capital Goods up by 0.25%, while Realty down by 0.88%, Healthcare down by 0.61%, Bankex down by 0.38%, Power down by 0.26% and Utilities down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.09%, HCL Technologies up by 0.91%, Tata Steel up by 0.83%, TCS up by 0.74% and Titan Company up by 0.63%. On the flip side, Nestle down by 1.65%, Sun Pharma down by 1.29%, HDFC Bank down by 1.25%, NTPC down by 0.81% and Ultratech Cement down by 0.76% were the top losers.

Meanwhile, the Labour ministry has said that retail inflation for industrial workers eased to 3.86 per cent in May 2024 compared to 4.42 per cent in the same month a year ago.  The All-India CPI-IW for May 2024 increased by 0.5 points and stood at 139.9 points. It was 139.4 points in April 2024. 

It further stated the food and beverages group increased to 145.2 points in May from 143.4 points in April this year. The fuel & light segment dipped to 149.5 points in May from 152.8 points in April 2024.

The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been compiling the Consumer Price Index for Industrial Workers every month on the basis of retail prices collected from 317 markets spread over 88 industrially important centres in the country.

The CNX Nifty is currently trading at 24246.80, down by 77.65 points or 0.32% after trading in a range of 24245.50 and 24402.65. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.28%, BPCL up by 1.22%, Tata Motors up by 1.05%, TCS up by 0.89% and HCL Technologies up by 0.79%. On the flip side, Nestle down by 1.66%, Sun Pharma down by 1.40%, HDFC Bank down by 1.32%, Bajaj Auto down by 1.03% and Shriram Finance down by 0.94% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 268.77 points or 1.52% to 17,740.44, Jakarta Composite gained 23.35 points or 0.32% to 7,310.39, Shanghai Composite strengthened 22.63 points or 0.76% to 2,961.99, Straits Times rose 14.53 points or 0.42% to 3,474.46, KOSPI increased 14.14 points or 0.49% to 2,882.13, Nikkei 225 surged 412.6 points or 0.99% to 42,244.59 and Taiwan Weighted added 347.59 points or 1.45% to 24,354.67.