Benchmarks remain in red in morning deals

Indian equity benchmarks remained in red in morning deals as investors reacted to mixed industrial output and retail inflation readings. India's Consumer Price Index (CPI)-based retail inflation rose marginally in August to 3.65 per cent from 3.6 per cent in July, yet remained below the Reserve Bank of India (RBI)’s medium-term target of 4 per cent for the second time in nearly five years, mainly because of a high base during the same period a year ago. Separately, the Index of Industrial Production (IIP) also rose slightly to 4.83 per cent in July from 4.72 per cent in June.  Meanwhile, the Ministry of Finance has notified the new Foreign Exchange (Compounding Proceedings) Rules 2024 to simplify rules and regulations for foreign investments. The new rules are aimed at streamlining and rationalising existing rules and regulations to further facilitate ease of doing business. On the global front, Asian markets are trading mixed after stocks in the United States pulled closer to their records following a couple of economic reports that came in close to expectations. 

The BSE Sensex is currently trading at 82791.24, down by 171.47 points or 0.21% after trading in a range of 82653.22 and 83092.93. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.79%.

The top gaining sectoral indices on the BSE were Realty up by 1.22%, Metal up by 0.98%, Basic Materials up by 0.67%, Utilities up by 0.47% and Telecom up by 0.45%, while FMCG down by 0.57%, TECK down by 0.11%, Bankex down by 0.06% and Healthcare down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.90%, Bajaj Finance up by 1.69%, Tata Steel up by 1.58%, Nestle up by 1.08% and Tata Motors up by 0.90%. On the flip side, Asian Paints down by 1.22%, ITC down by 1.07%, Hindustan Unilever down by 1.03%, Adani Ports &SEZ down by 0.82% and Mahindra & Mahindra down by 0.69% were the top losers. 

Meanwhile, retail inflation based on the Consumer Price Index (CPI) inched up to 3.65 per cent in August 2024, though vegetables and pulses witnessed price rise in double digits. However, the retail inflation remained below the Reserve Bank of India’s (RBI) median target of 4 per cent for the second month in a row. It was at a five-year low of 3.6 per cent in July. The headline inflation was 6.83 per cent in August 2023. Year-on-year inflation rate (3.65 per cent) based on All India Consumer Price Index (CPI) for the month of August, 2024, is second lowest in the last five years. Inflation in the food basket was 5.66 per cent in August, marginally up from 5.42 per cent in July.

The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in August 2024 stood at 4.16 per cent over 4.10 per cent in July 2024. The Urban CPI (General) stood at 3.14 per cent in August as against 3.03 per cent in July. The index value for Rural, Urban and Combined CPI (General) stood at 195.4, 190.3 and 193.0 respectively, in August 2024. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of August 2024, NSO collected prices from 100.0% villages and 98.6% urban markets while the market-wise prices reported therein were 88.3% for rural and 92.4% for urban.

According the data, the inflation rate for vegetables grew 10.71 per cent in August as against 6.83 per cent in the previous month. This can be attributed to concerns over erratic monsoon rains that could impact crop yields and push prices higher in the future. For pulses and cereals, the inflation rate stood at 13.60 per cent and 7.31 per cent, respectively. The inflation rate for fruits came in at 6.45 per cent. For milk and milk products, the inflation rate was 2.98 per cent in August. The inflation rate for meat and fish, egg segments were recorded at 4.30 per cent and 7.14 per cent, respectively. The Fuel and light inflation rate for August stood at (-)5.31 per cent as against a (-)3.66 per cent in July. For clothing & footwear and housing sectors, the inflation rates were 2.72 per cent and 2.66 per cent, respectively.

The CNX Nifty is currently trading at 25335.75, down by 53.15 points or 0.21% after trading in a range of 25292.45 and 25430.50. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.06%, Bajaj Finserv up by 1.84%, Bajaj Finance up by 1.72%, Tata Steel up by 1.63% and Nestle up by 1.05%. On the flip side, Asian Paints down by 1.34%, Hindustan Unilever down by 1.18%, ITC down by 1.17%, Divi's Lab down by 1.05% and SBI Life Insurance down by 1.01% were the top losers.

Asian markets are trading mixed; KOSPI dropped 3.94 points or 0.15% to 2,568.15, Nikkei 225 slipped 273.56 points or 0.74% to 36,559.71, Jakarta Composite plunged 2.55 points or 0.03% to 7,795.60 and Shanghai Composite weakened 2.35 points or 0.09% to 2,714.77.

On the flip side, Taiwan Weighted added 73.23 points or 0.34% to 21,726.48, Hang Seng advanced 167.99 points or 0.96% to 17,408.38 and Straits Times rose 5.21 points or 0.15% to 3,561.74.