Dalal Street witness more intensified selling in late noon deals

The Dalal Street witnessed more intensified selling in late noon deals, with both Sensex and Nifty trading near their intraday low points, impacted by weak cues from European markets, as investors awaited a slew of key U.S. economic data this week for additional clues on the Fed's rate trajectory. Traders were cautious, as SBI Report stated that the CPI inflation down, but road ahead could be bumpy. India's Consumer Price Index (CPI) inflation dropped to 3.54 per cent in July 2024, its lowest in nearly five years, largely driven by a decline in vegetable prices. Besides, chief economic advisor (CEA) V Anantha Nageswaran said the government needs to gather macroeconomic data at shorter and higher frequencies, noting that states held the key for many of the reforms required to pull economic growth.

On the global front, European markets were trading mostly in red, even as the UK unemployment rate dropped unexpectedly in the second quarter. The data from the Office for National Statistics revealed that the unemployment rate fell to 4.2 percent in the three months to June period, while the rate was expected to rise marginally to 4.5 percent from 4.4 percent in the preceding period. Asian markets were trading higher, after Japan's machine tool orders increased for the third straight month in July on the back of a surge in foreign demand. The preliminary data from the Japan Machine Tool Builders Association, or JMTBA, showed that machine tool orders climbed 8.4 percent year-on-year in July.

The BSE Sensex is currently trading at 79018.91, down by 630.01 points or 0.79% after trading in a range of 78912.86 and 79692.55. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined by 0.73%, while Small cap index was down by 0.78%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 1.62% and Healthcare up by 0.07%, while Telecom down by 1.54%, Basic Materials down by 1.43%, Oil & Gas down by 1.31%, Bankex down by 1.25% and PSU down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 2.00%, Sun Pharma up by 0.46%, Nestle up by 0.43%, Bharti Airtel up by 0.22% and Infosys up by 0.11%. On the flip side, HDFC Bank down by 3.11%, Tata Motors down by 2.34%, Bajaj Finance down by 1.82%, Tata Steel down by 1.45% and Power Grid down by 1.35% were the top losers.

According to the quarterly report released by the Exim Bank, the country's economy continues to demonstrate strong activity, driven by sustained momentum in both the manufacturing and services sectors. Additionally, expected global monetary easing and improving demand prospects from trading partners are likely to bolster export performance.

However, the report noted that the forecast is not without risks. Uncertain prospects for advanced economies, geopolitical tensions, the ongoing crisis in West Asia, global supply chain disruptions, and increasing geo-economic fragmentation pose potential challenges that could impact these projections.

The CNX Nifty is currently trading at 24158.90, down by 188.10 points or 0.77% after trading in a range of 24116.50 and 24359.95. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Titan up by 2.14%, Apollo Hospital up by 1.22%, Tata Consumer Products up by 0.82%, Dr. Reddy's Lab up by 0.80% and Nestle up by 0.52%. On the flip side, Shriram Finance down by 3.53%, HDFC Life Insurance down by 3.52%, BPCL down by 3.21%, HDFC Bank down by 3.08% and Tata Motors down by 2.31% were the top losers.

European markets were trading mostly in red; UK’s FTSE 100 decreased 5.43 points or 0.07% to 8,204.82 and France’s CAC fell 5.35 points or 0.07% to 7,245.32, while Germany’s DAX gained 18.41 points or 0.1% to 17,744.88.