Sensex, Nifty makes gap-down opening amid sell-off in global peers

Indian equity benchmarks made gap-down opening on Friday tracking the broadly negative cues from Wall Street overnight as well as sell-off in the Asian counterparts, amid concerns about the outlook for global economic growth after some disappointing economic data from the U.S., Europe and China that offset optimism about a near-term interest rate cut by US Fed. Sensex and Nifty witnessed bloodbath and are trading lower by around a percent each in early deals amid prominent selling in metal stocks. Some cautiousness came as the India Meteorological Department (IMD) said the monsoon during the remaining two months of the season (August-September) on average is expected to be above-normal with September poised to get more rain than August. The forecast assumes significance as more than normal rains in September, the last month of the four-month season may hurt the standing kharif crops depending on their stage of maturity. 

Traders largely overlooked the government data showed that GST collection in July rose 10.3 per cent to over Rs 1.82 trillion, mainly driven by domestic transactions in goods and services. This is the third-highest monthly collection recorded since the indirect tax regime was rolled out seven years ago on July 1, 2017. According to the data, total refunds stood at Rs 16,283 crore in July. On the sectoral front, banking sector stocks are in focus ratings agency Moody's said the Reserve Bank of India's latest draft guidelines aimed at enhancing banks' ability to manage liquidity in the face of increasing digital transactions is credit positive. In stock specific development, Zomato soared on solid Q1. The company reported a massive jump in its net profit in Q1FY25 to Rs 253 crore, from Rs 2 crore reported in Q1FY24.

The BSE Sensex is currently trading at 81204.25, down by 663.30 points or 0.81% after trading in a range of 81084.77 and 81345.60. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.12%, while Small cap index was down by 0.84%.

The sole gaining sectoral indices on the BSE was FMCG up by 0.34%, while Metal down by 2.29%, Auto down by 1.90%, PSU down by 1.80%, Oil & Gas down by 1.56% and Capital Goods down by 1.55% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.11%, Hindustan Unilever up by 0.98%, Asian Paints up by 0.58%, Nestle up by 0.35% and ITC up by 0.25%. On the flip side, Tata Motors down by 3.42%, Tata Steel down by 3.16%, Maruti Suzuki down by 2.99%, JSW Steel down by 2.29% and Larsen & Toubro down by 2.13% were the top losers.

Meanwhile, the India Meteorological Department (IMD) has said that India is likely to record above-normal rainfall in August and September, with a good chance of favourable La Nina conditions developing by the end of August. Prediction of above-normal rain means there’s a high possibility of landslides and floods. The monsoon is critical for India’s agricultural landscape, with 52 per cent of the net cultivated area relying on it. The primary rain-bearing system is also crucial for replenishing reservoirs critical for drinking water and power generation across the country.

The IMD said that rainfall over India in August and September would be around 106 per cent of the long-period average of 422.8 mm. The country has so far recorded 453.8 mm of rainfall against the normal of 445.8 mm since June 1, a surplus of two per cent, owing to a wetter-than-normal July after a drier June. IMD chief Mrutyunjay Mohapatra said normal to above-normal rainfall is predicted in most parts of the country in August-September. Below-normal rainfall is expected in parts of the northeast, adjoining east India, Ladakh, Saurashtra and Kutch, and pockets of central and peninsular India.

The IMD chief anticipated deficient rainfall in parts of western Himalayan region in August-September. He said La Nina, a buildup of cooler-than-normal waters in the central Pacific Ocean aiding monsoon rainfall in the Indian subcontinent, could set in by August end. Mohapatra said above-normal maximum temperatures are expected over most parts of the country. “Normal to below-normal maximum temperatures are likely in some areas in the Gangetic plains, central India, and the southeast coast of India.” India recorded nine per cent more rainfall than normal in July, with the central region receiving 33 per cent excess rain. He said that central India, which heavily relies on monsoon rainfall for agriculture, has been receiving good rainfall for the third consecutive monsoon season, benefiting agriculture.

The CNX Nifty is currently trading at 24742.35, down by 268.55 points or 1.07% after trading in a range of 24723.70 and 24851.90. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 0.99%, Hindustan Unilever up by 0.85%, Apollo Hospital up by 0.35% and Dr. Reddy's Lab up by 0.14%. On the flip side, Maruti Suzuki down by 3.32%, ONGC down by 3.29%, Tata Motors down by 3.14%, Tata Steel down by 3.10% and Hindalco down by 2.98% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 1770.93 points or 4.64% to 36,355.40, Taiwan Weighted lost 832 points or 3.67% to 21,810.10, Hang Seng declined 361.23 points or 2.09% to 16,943.73, KOSPI dropped 92.62 points or 3.33% to 2,685.06, Straits Times fell 34.38 points or 1.01% to 3,385.46, Shanghai Composite weakened 13.07 points or 0.45% to 2,919.32 and Jakarta Composite was down by 4.17 points or 0.06% to 7,321.82.