Key gauges remain in red in morning deals

Indian equity benchmarks erased some of their initial losses but continued to trade in red in morning deals, due to losses in Utilities, Power and FMCG stocks. Sentiments remained down-beat as latest data released by the Reserve Bank of India (RBI) showed that deposit growth of commercial banks further slowed down to 10.64 per cent for the fortnight ending June 28. Credit growth also declined during the period. According to the data, scheduled commercial banks’ credit rose by 13.88 per cent year-on-year (Y-o-Y) to Rs 163.8 trillion as on June 28. The deposit base of banks expanded by 10.64 per cent Y-o-Y to Rs 211.95 trillion. Traders also remained on sidelines ahead of the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out on August 12. However, losses remain capped as traders took support with the Comptroller and Auditor General (CAG) stating that the central government was back on the path of fiscal consolidation in 2021-22, having ‘recovered ground’ from the pandemic year, and its ability to sustain debt improved. On the global front, Asian markets are trading mixed amid growing hopes that concerns over a U.S. recession were overblown, with focus turning squarely to a string of key inflation readings this week.

The BSE Sensex is currently trading at 79537.62, down by 168.29 points or 0.21% after trading in a range of 79226.13 and 79597.07. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.43%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.39%, Realty up by 0.29%, Metal up by 0.26% and Bankex up by 0.05%, while Utilities down by 1.61%, Power down by 1.00%, FMCG down by 0.65%, PSU down by 0.65% and Auto down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 1.53%, Tata Motors up by 1.02%, HDFC Bank up by 0.90%, Axis Bank up by 0.75% and Maruti Suzuki up by 0.64%. On the flip side, NTPC down by 1.90%, Adani Ports &SEZ down by 1.62%, Power Grid Corporation down by 1.37%, Nestle down by 1.26% and Mahindra & Mahindra down by 1.05% were the top losers.

Meanwhile, Minister of State for Commerce and Industry Jitin Prasada has said that foreign direct investment inflows in the manufacturing sector during 2014-24 rose by 69 per cent to $165.1 billion. He said that India is rapidly emerging as a preferred country for foreign investment in the manufacturing sector. 

He stated ‘FDI equity inflow in the manufacturing sectors in the last ten financial years (2014-24) has increased by 69 per cent to $165.1 billion as compared to $97.7 billion in the previous ten financial years (2004-14).’ He also said that the total FDI inflow of $383.50 billion has been reported in the country during the past five financial years (2019-20 to 2023-24).

Besides, he said that the initiatives taken by the Government have led to a decline in dependency on imports in several sectors including mobiles. The import of mobile phones has decreased from Rs 48,609 crore in 2014-15 to Rs 7,674 crore in 2023-24. He said, on the other hand, the exports have increased from Rs 1,566 crore in 2014-15 to more than Rs 1,28,982 crore in 2023-24.

The CNX Nifty is currently trading at 24295.00, down by 72.50 points or 0.30% after trading in a range of 24212.10 and 24323.70. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 1.57%, Tata Motors up by 0.83%, HDFC Bank up by 0.78%, Axis Bank up by 0.73% and Hindalco up by 0.68%. On the flip side, Adani Enterprises down by 3.19%, NTPC down by 2.06%, Adani Ports &SEZ down by 2.00%, Tata Consumer Product down by 1.59% and Power Grid Corporation down by 1.45% were the top losers.

Asian markets are trading mixed; Hang Seng advanced 8.47 points or 0.05% to 17,098.70, KOSPI increased 26.16 points or 1.01% to 2,614.59 and Taiwan Weighted added 329.72 points or 1.54% to 21,798.72. On the flip side, Straits Times fell 27.44 points or 0.84% to 3,234.39, Jakarta Composite plunged 10.6 points or 0.15% to 7,246.40 and Shanghai Composite weakened 0.9 points or 0.03% to 2,861.29.