Benchmarks trade marginally lower in late morning deals

Indian equity benchmarks erased gains and entered into red terrain in late morning deals, as profit-taking emerged in domestic equities after a record rally amid weak global market trends. Investors continued to trade with caution ahead of the Budget announcement. However, losses remain capped as traders took some support after the Asian Development Bank (ADB) in its July edition of the Asian Development Outlook (ADO) maintained India’s GDP growth forecast at 7 per cent for the current financial year (FY25), citing that a rebound in agriculture is expected given above-normal monsoon projections. Sectorally, stocks related to telecom sector remained in watch as Crisil Ratings’ report stated that a much-needed tariff hike and growing data consumption will lift the average revenue per user per month (ARPU) of Indian telecom companies (telcos) by around 25% in fiscal 2026 compared with fiscal 2024. That, along with moderation in capital expenditure (capex), on account of lower network investments after completion of 5G rollouts and limited spectrum renewals, will enhance return on capital employed (RoCE) and support deleveraging in the industry, thereby improving credit profiles. On the global front, Asian markets are trading mostly in red as investors weigh potential U.S. policy risks in the face of heightened U.S.-China tensions.  

The BSE Sensex is currently trading at 80663.60, down by 52.95 points or 0.07% after trading in a range of 80390.37 and 80910.45. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.49%, while Small cap index was down by 1.37%.

The top gaining sectoral indices on the BSE were IT up by 0.70%, FMCG up by 0.63% and TECK up by 0.61%, while Capital Goods down by 2.48%, Industrials down by 2.21%, Power down by 2.09%, Consumer Durables down by 1.88% and PSU down by 1.64% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.42%, Hindustan Unilever up by 1.65%, Bajaj Finserv up by 0.97%, Tech Mahindra up by 0.75% and Infosys up by 0.60%. On the flip side, Adani Ports &SEZ down by 1.43%, Tata Steel down by 1.38%, Ultratech Cement down by 1.34%, Power Grid down by 1.24% and NTPC down by 1.18% were the top losers.

Meanwhile, the Asian Development Bank (ADB) in its July edition of the Asian Development Outlook (ADO) has maintained India’s GDP growth forecast at 7 per cent for the current financial year (FY25), citing that a rebound in agriculture is expected given above-normal monsoon projections.

It stated the Indian economy is on track to grow by 7 per cent in FY25 (ending 31 March 2025) and 7.2 per cent in next financial year, as projected in ADO April 2024. The Indian economy logged a growth rate of 8.2 per cent for the financial year ended March 2024, as against 7 per cent in the previous fiscal year. 

It stated, services continued to expand robustly in Q4 of FY24, and the forward-looking services PMI is well above its long-term average, it said, adding, industry is also expected to grow robustly, driven by manufacturing and strong demand for construction led by housing, it said. With regard to inflation, it has also retained its forecast at 4.6 per cent for the current financial year and expects it to marginally decline to 4.5 per cent next fiscal.

The CNX Nifty is currently trading at 24588.25, down by 24.75 points or 0.10% after trading in a range of 24515.10 and 24678.90. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were LTIMindtree up by 2.96%, TCS up by 2.26%, Hindustan Unilever up by 1.72%, ONGC up by 1.53% and Bajaj Finserv up by 0.96%. On the flip side, Bajaj Auto down by 3.55%, Hero MotoCorp down by 2.02%, Coal India down by 1.85%, Adani Ports &SEZ down by 1.39% and Ultratech Cement down by 1.32% were the top losers.

Asian markets are trading mostly in red; Shanghai Composite weakened 3.6 points or 0.12% to 2,959.25, Straits Times fell 20.55 points or 0.59% to 3,469.02, KOSPI dropped 35.45 points or 1.26% to 2,807.84, Nikkei 225 slipped 762.22 points or 1.89% to 40,335.47 and Taiwan Weighted lost 545.3 points or 2.35% to 23,224.52.

On the flip side, Hang Seng advanced 47.61 points or 0.27% to 17,787.02 and Jakarta Composite gained 88.21 points or 1.21% to 7,312.43.