Sensex, Nifty trade tad above neutral lines in early noon

In a volatile trading session, Indian equity benchmarks were trading just above their neutral lines in early afternoon deals, amid weak cues from other Asian markets along with selling at PSU and Oil & Gas counters, as weaker-than-expected U.S. job growth signaled an economic slowdown and fueled worries that the Federal Reserve may have waited too long to cut interest rates. Traders got relief with a private report stating that food inflation, which has moderated a bit lately is further expected to come down in the coming months, citing progressing Southwest monsoon and sufficient water in reservoirs across regions.

On the global front, Asian markets were trading mostly in red, as China's consumer price inflation increased in August as abnormal weather pushed up vegetable prices, while producer prices declined more sharply on lower commodity prices. The National Bureau of Statistics reported that consumer price inflation rose to a six-month high of 0.6 percent in August from 0.5 percent in July. But the rate fell short of the expected 0.7 percent rise.

Back home, on the sectoral front, textile industry stocks were in watch, as Union Minister of Textiles, Giriraj Singh has expressed confidence that India’s technical textile exports will cross the target of $10 billion set for 2030, emphasizing the increasing consumption and importance of man-made fibres and technical textiles in all spaces of life, at both a global and domestic level.

The BSE Sensex is currently trading at 81255.41, up by 71.48 points or 0.09% after trading in a range of 80895.05 and 81448.79. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.93%, while Small cap index was down by 1.17%.

The top gaining sectoral indices on the BSE were FMCG up by 1.04%, TECK up by 0.11%, IT up by 0.07% and Consumer Durables up by 0.04%, while PSU down by 2.14%, Oil & Gas down by 2.07%, Energy down by 1.71%, Metal down by 1.60% and Utilities down by 1.31% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.52%, ITC up by 1.26%, ICICI Bank up by 0.89%, Infosys up by 0.79% and Indusind Bank up by 0.54%. On the flip side, NTPC down by 2.14%, Tata Motors down by 2.00%, Tech Mahindra down by 1.49%, Tata Steel down by 1.42% and Power Grid down by 1.12% were the top losers.

Meanwhile, Ministry of Commerce and Industry in its latest data has showed that India’s trade with Kuwait has surged remarkably, with Indian exports to the Gulf nation reaching an impressive $2.10 billion in the fiscal year 2023-24. The surge in trade marks a significant increase of 34.78 per cent in FY-2023-24 compared to the $1.56 billion reported in the previous fiscal year. This surge in exports also highlighted the robust trade relationship between the two countries, reflecting a substantial year-on-year growth. As per the data, the key sectors driving this export growth include aircraft and spacecraft parts, cereals, and a diverse range of precious and semi-precious stones. Additionally, the export of imitation jewelry, coins, vehicles (excluding railway or tramway rolling stock), and pharmaceutical products have contributed to this impressive performance. 

Kuwait’s economy, predominantly driven by its vast petroleum resources, has maintained its position as a significant trading partner for India. The country boasts estimated crude oil reserves of 101.5 billion barrels, accounting for approximately 6 per cent of the world’s total reserves, and proven natural gas reserves of 1,784 billion cubic meters, or about 63 trillion cubic feet.  The country also stands as the fourth-largest economy among the GCC (Gulf Cooperation Council) countries, trailing only the UAE, Saudi Arabia, and Qatar. This competitive and open market presents substantial opportunities for Indian exports, particularly in the consumer goods and project sectors.

India has consistently ranked among Kuwait’s top trading partners. For the fiscal year 2023-24, the total bilateral trade between India and Kuwait reached $10.479 billion. Of this, Indian exports constituted $2.10 billion, reflecting a notable increase of 34.7 per cent year-over-year. Furthermore, Kuwait continues to play an important role in meeting India’s energy requirements. During the fiscal year 2023-24, Kuwait was the sixth-largest crude oil supplier to India, fulfilling approximately 3 per cent of the country’s total energy needs.

The CNX Nifty is currently trading at 24855.65, up by 3.50 points or 0.01% after trading in a range of 24753.15 and 24916.75. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.54%, Shriram Finance up by 1.54%, SBI Life Insurance up by 1.50%, Tata Consumer Products up by 1.24% and ITC up by 1.21%. On the flip side, ONGC down by 4.42%, Hindalco down by 2.41%, Coal India down by 2.09%, Tata Motors down by 2.07% and NTPC down by 2.00% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 350.76 points or 2.05% to 17,093.54, Jakarta Composite plunged 53.76 points or 0.7% to 7,668.09, Shanghai Composite weakened 30.07 points or 1.1% to 2,735.74, KOSPI dropped 8.35 points or 0.33% to 2,535.93, Nikkei 225 slipped 175.72 points or 0.49% to 36,215.75 and Taiwan Weighted lost 290.75 points or 1.38% to 21,144.44, while  Straits Times rose 31.79 points or 0.91% to 3,486.26.