Lackluster trade persists over Dalal Street

A lackluster trade continued over the Dalal Street with both Sensex and Nifty trading marginally lower, amid negative cues from other Asian markets along with selling at Oil & Gas and Metal counters. However, downside remained capped, after the World Bank in its latest ‘India Development Update: India’s Trade Opportunities in a Changing Global Context’ has said that the Indian economy continues to grow at a healthy pace despite challenging global conditions. According to the World Bank, the growth is forecast to reach 7 percent in FY24/25 and remain strong in FY25/26 and FY26/27.

On the global front, Asian markets were trading mostly in red, after the manufacturing sector in Taiwan continued to expand in August, albeit at a slower rate, with a manufacturing PMI score of 51.5. That's down from 52.9 in July, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Underlying the weaker improvement in operating conditions was a noticeable slowdown in output growth. Production continued to increase, but only marginally and to the weakest degree in the current five-month run of expansion.

The BSE Sensex is currently trading at 82494.34, down by 65.50 points or 0.08% after trading in a range of 82400.76 and 82675.06. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.23%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.19%, Capital Goods up by 0.99%, Industrials up by 0.81%, Healthcare up by 0.52% and Telecom up by 0.44%, while Oil & Gas down by 0.35%, Metal down by 0.33%, Utilities down by 0.25%, Bankex down by 0.22% and Energy down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 1.33%, Titan up by 0.93%, Hindustan Unilever up by 0.91%, Tech Mahindra up by 0.63% and Larsen & Toubro up by 0.57%. On the flip side, Bajaj Finance down by 1.70%, Adani Ports & SEZ down by 0.66%, Bharti Airtel down by 0.65%, JSW Steel down by 0.59% and ICICI Bank down by 0.58% were the top losers.

Meanwhile, Union Minister Nitin Gadkari has said that state finance ministers should consider reducing Goods and Services Tax (GST) on flex-fuel vehicles to 12 per cent in the GST Council meeting. He said there is a need to reduce imports of fossil fuels and encourage the use of biofuel. Flex-fuel-compatible cars can run on more than one type of fuel and also on a mixture. Typically, a blend of petrol and ethanol or methanol is used.

The minister noted that at present, 28 per cent GST is levied on vehicles powered by internal combustion engines, including hybrids, and 5 per cent on electric vehicles. He also pointed out that every year, India imports fossil fuels of up to Rs 22 lakh crore, and it is not only a problem related to air pollution but also an economic problem. He said ‘So, now by starting this, a day will come when we will reduce our imports and will encourage bio-fuel. And because of reducing imports of fossil fuels and encouraging biofuel, he is confident that the most important beneficiary will be the agriculture sector.  Today, in the biofuel sector, there is a huge potential’.

According to Gadkari, in the India scenario, the cost of biofuel is less and there is no pollution, so that is going to be advantageous to the common man also. He noted that the automobile industry is an important industry for the Indian economy. This industry, which is up till now, creates 4.5 crore jobs. This is the industry, which is giving maximum GST to the state and central government.

The CNX Nifty is currently trading at 25261.85, down by 16.85 points or 0.07% after trading in a range of 25235.80 and 25321.70. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Nestle up by 1.35%, Hero MotoCorp up by 1.19%, Hindustan Unilever up by 0.93%, Titan up by 0.91% and Wipro up by 0.78%. On the flip side, Bajaj Finance down by 1.70%, Adani Ports & SEZ down by 0.68%, Britannia down by 0.60%, JSW Steel down by 0.59% and Hindalco down by 0.57% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 65.8 points or 0.37% to 17,626.17, Jakarta Composite plunged 56.23 points or 0.73% to 7,638.30, Shanghai Composite weakened 7.14 points or 0.25% to 2,803.90, KOSPI dropped 16.37 points or 0.61% to 2,664.63, Nikkei 225 slipped 14.56 points or 0.04% to 38,686.31 and Taiwan Weighted lost 142.89 points or 0.65% to 22,092.21, while Straits Times rose 12.84 points or 0.37% to 3,475.92.