Benchmarks trade flat with negative bias in morning deals

Indian equity benchmarks were trading flat with negative bias in morning deals, due to weak global cues on worries of potential slowdown in the US market. Traders overlooked the Directorate General of Foreign Trade (DGFT) stated that the government has extended the interest equalisation scheme on pre- and post-shipment rupee export credit for one more month till September 30 this year to promote the country's outbound shipments. Traders also paid no heed towards NITI Aayog CEO B.V.R. Subrahmanyam’s statement that the Free Trade Agreement (FTA) being negotiated between India and the UK is in the final stages with both sides within finger-touching distance to clinch an agreement. The FTA is aimed at significantly enhancing the estimated GBP 38.1 billion a year bilateral trading partnership. Sector-wise, auto stocks remained in watch as industry body FADA stated that paassenger vehicle retail sales in India witnessed a 5 per cent on-year decline in August on account of delayed customer purchases, poor consumer sentiment and persistent heavy rains. The overall passenger vehicle (PV) registrations last month stood at 3,09,053 units, as compared to 3,23,720 units in August 2023. On the global front, Asian markets are trading mixed as traders remain cautious ahead of the release of the more closely watched US monthly jobs report on Friday.

The BSE Sensex is currently trading at 82328.32, down by 24.32 points or 0.03% after trading in a range of 82312.09 and 82617.49. 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 0.39%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.13%, Consumer Durables up by 0.59%, Basic Materials up by 0.53%, Consumer discretionary up by 0.49% and Oil & Gas up by 0.40%, while Capital Goods down by 0.57%, Realty down by 0.42%, Power down by 0.29%, Industrials down by 0.28% and Utilities down by 0.25% were the top losing indices on BSE. 

The top gainers on the Sensex were Titan Company up by 1.83%, JSW Steel up by 0.92%, Tech Mahindra up by 0.69%, ITC up by 0.50% and SBI up by 0.45%. On the flip side, Nestle down by 1.06%, Bharti Airtel down by 0.91%, Mahindra & Mahindra down by 0.79%, Larsen & Toubro down by 0.69% and Maruti Suzuki down by 0.63% were the top losers.

Meanwhile, the Indian Paper Manufacturers Association (IPMA) in its latest report has said that India remains the fastest-growing paper market in the world with domestic consumption of packaging paper and paperboard growing at 8.2 per cent in 2023-24. It mentioned the domestic packaging paper & paperboard market stands at about 15 million tonnes which is nearly 65 per cent of the total paper, paperboard and newsprint market of 23 million tonnes in the country. 

It said demand for better quality packaging of FMCG products, textiles, pharmaceuticals, among others, as well as, booming e-commerce and rising healthcare spends are among the factors that are driving the growth of packaging paper & paperboard market in India. It added the ban on single-use plastic, with paper offering a sustainable environment-friendly option, has also emerged as a key demand driver for these products.

Further, it said, overall, the demand for paper in India is growing at 6-7 per cent per annum, making it one of the fastest growing markets in the world. Writing & printing (W&P) paper market, which is traditionally associated with consumption of paper in the country, is growing at around 3 per cent and within this, copier paper demand is growing at the fastest rate of 4.5 per cent.

Per capita paper consumption in India is currently at a low of 16 kg as against the global average of 57 kg. Developed countries have 200+ kg of per capita consumption of paper. Pawan Agarwal, President IPMA, said per capita paper consumption in India is projected to increase over time with increasing levels of literacy, higher growth of organised retail and need for packaging, and overall economic development.

The CNX Nifty is currently trading at 25195.30, down by 3.40 points or 0.01% after trading in a range of 25186.95 and 25275.45. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.65%, LTIMindtree up by 1.34%, Shriram Finance up by 1.05%, Divi's Lab up by 0.93% and Apollo Hospital up by 0.91%. On the flip side, Nestle down by 1.07%, Bharti Airtel down by 0.88%, Britannia Industries down by 0.87%, Mahindra & Mahindra down by 0.81% and Bajaj Finance down by 0.72% were the top losers.

Asian markets are trading mixed; Jakarta Composite gained 23.56 points or 0.31% to 7,696.46, Shanghai Composite strengthened 1.1 points or 0.04% to 2,785.38, Straits Times rose 4.27 points or 0.12% to 3,445.65 and Taiwan Weighted added 205.15 points or 0.96% to 21,297.90.

On the flip side, Hang Seng declined 80.48 points or 0.46% to 17,376.86, KOSPI dropped 10.86 points or 0.42% to 2,569.94 and Nikkei 225 slipped 457.44 points or 1.25% to 36,590.17.