Benchmarks remain in red in morning deals

Indian equity benchmarks continued to trade lower in morning deals, due to profit booking ahead of the Union budget. Traders took a note of the Reserve Bank’s July Bulletin showed that the second quarter of 2024-25 has begun with signs of quickening momentum in the economy though inflation in the food basket remains a concern. Traders overlooked Crisil’s report noted that India's exports have shown resilience amidst global challenges, with merchandise exports rising by 5.8% to $109.96 billion in the first quarter of fiscal 2025. Traders also paid no heed towards FICCI’s Economic Outlook Survey stated that Indian economy is expected to grow at an annual median GDP growth of 7 per cent in 2024-25. On the global front, Asian markets are trading lower as uncertainty across the geopolitical landscape and in major economies added to headwinds for investors even as the global rate easing cycle gets under way.  

The BSE Sensex is currently trading at 81117.10, down by 226.36 points or 0.28% after trading in a range of 81076.32 and 81587.76. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.62%, while Small cap index was down by 1.63%.

The top gaining sectoral indices on the BSE were IT up by 0.53%, TECK up by 0.31% and FMCG up by 0.08%, while Metal down by 2.28%, Realty down by 2.05%, Oil & Gas down by 2.04%, Energy down by 1.88% and Basic Materials down by 1.74% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.63%, ITC up by 1.00%, Asian Paints up by 0.89%, HCL Tech. up by 0.77% and Nestle up by 0.22%. On the flip side, Tata Steel down by 2.74%, Tech Mahindra down by 1.83%, JSW Steel down by 1.75%, Ultratech Cement down by 1.46% and Power Grid Corporation down by 1.36% were the top losers.

Meanwhile, NITI Aayog in its latest report titled ‘Electronics: Powering India’s Participation in Global Value Chains’, has said that India should aim $500 billion in electronics manufacturing by 2030. It added that such growth would create employment for about 6 million people. It stated this ambitious target comprises $350 billion from finished goods manufacturing and $150 billion from components manufacturing. As of FY23, India’s electronics production stands at $101 billion. This comprises $86 billion in finished goods production and $15 billion in components manufacturing.

According to the report, India’s electronics exports are expected to reach $240 billion and domestic value addition to increase to over 35 per cent. It mentioned ‘India’s ambition to become the third-largest global economy necessitates a more ambitious vision for its technology-driven sectors. With a conducive business environment and robust policy support, including fiscal incentives and non-fiscal interventions, India should aim to achieve $500 billion in electronics manufacturing by value terms by FY30.’

Besides, in a business as usual (BAU) scenario, the report noted that the projections indicate India’s electronics manufacturing could escalate to $278 billion by FY30. This includes $253 billion from finished goods and $25 billion from components manufacturing. Employment generation is expected to grow substantially to around 3.4 million, with exports reaching $111 billion.

The CNX Nifty is currently trading at 24697.10, down by 103.75 points or 0.42% after trading in a range of 24678.40 and 24854.80. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.88%, Britannia Industries up by 1.01%, ITC up by 0.95%, Asian Paints up by 0.91% and HCL Technologies up by 0.76%. On the flip side, BPCL down by 3.43%, Hindalco down by 2.89%, Tata Steel down by 2.81%, ONGC down by 2.71% and Eicher Motors down by 2.09% were the top losers.

All Asian markets are trading lower; Hang Seng declined 376.55 points or 2.16% to 17,401.86, Jakarta Composite plunged 50.28 points or 0.69% to 7,270.79, Shanghai Composite weakened 2.51 points or 0.08% to 2,974.62, Straits Times fell 28 points or 0.81% to 3,443.16, KOSPI dropped 40.27 points or 1.43% to 2,784.08, Nikkei 225 slipped 55.21 points or 0.14% to 40,071.14 and Taiwan Weighted lost 427.58 points or 1.83% to 22,970.89.