Benchmarks trade with minor cuts in late morning deals

Indian equity benchmarks were trading marginally lower in late morning deals, amid unabated foreign fund outflows. Foreign Institutional Investors (FIIs) sold equities worth Rs 1,748.71 crore on Tuesday, continuing a month-long selling spree. Traders remained cautious as Reserve Bank of India (RBI) data showed that India’s outward foreign direct investment (FDI) commitments declined by about $900 million to $3.72 billion in September 2024, compared to $4.63 billion in September 2023. Some concern also came as SBI research stated that the soaring figures of retail inflation in September could force the Reserve Bank of India (RBI) to continue with neutral stance for a longer duration, and added that first rate cut could be based on growth, and need not be inflation. The research stated on the rationale that if inflation remains sketchy in the coming months, the apex bank will consider growth as the criteria for rate cut. On the global front, Asian markets are trading mixed tracking a US selloff, as investors weighed if the artificial intelligence rally that’s powered the bull market recently still has room to run.

The BSE Sensex is currently trading at 81733.24, down by 86.88 points or 0.11% after trading in a range of 81579.37 and 81932.15. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.09%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Telecom up by 0.88%, Power up by 0.41%, Metal up by 0.30%, Utilities up by 0.27% and Capital Goods up by 0.22%, while Auto down by 0.91%, Consumer Disc down by 0.62%, IT down by 0.50%, Realty down by 0.43% and TECK down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.11%, Power Grid Corporation up by 0.73%, Bharti Airtel up by 0.48%, Asian Paints up by 0.41% and HCL Technologies up by 0.39%. On the flip side, Mahindra & Mahindra down by 2.31%, Nestle down by 1.62%, Indusind Bank down by 1.25%, Titan Company down by 1.22% and Maruti Suzuki down by 1.06% were the top losers.

Meanwhile, terming the telecom sector of the country as 'aggressive' and 'ambitious', Communications minister Jyotiraditya Scindia has said that India is resolved to lead the world in 6G. He said with the Bharat 6G Alliance, India hopes to contribute at least 10 per cent patents to 6G standardisation. He asserted ‘It is our belief and our commitment -- India followed the world in 4G, we marched with the world in 5G, but we shall lead the world in 6G.’

With the fastest 5G rollout in India wherein 98 per cent of districts and 90 per cent of all villages were covered in a span of just 21 months, the minister said it is the government’s effort of not just embracing, but bracing the country to become the first-mover in 6G technology.

He noted that the recent changes to the Telecommunications Act 2023 have been designed in such a way so as to modernise India's telecom framework, drawing light upon hitherto unaddressed areas such as the high potential sector of satellite communications, addressing the challenges of the digital era, the most important being cyber security. He said ‘the telecom sector, much like other growth-critical sectors in India, is aggressive, is ambitious, and its outlook in our journey from Amrit Kaal to Shatabdi Kaal is to lead the world.’

The CNX Nifty is currently trading at 25030.60, down by 26.75 points or 0.11% after trading in a range of 24994.65 and 25093.40. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 2.06%, HDFC Bank up by 1.17%, Hindalco up by 1.17%, Grasim Industries up by 1.08% and SBI Life Insurance up by 1.08%. On the flip side, Trent down by 2.39%, Mahindra & Mahindra down by 2.25%, Nestle down by 1.59%, Hero MotoCorp down by 1.44% and Indusind Bank down by 1.36% were the top losers.

Asian markets are trading mixed; Straits Times rose 16.78 points or 0.47% to 3,612.25, Jakarta Composite gained 0.11 points or 0% to 7,627.06, Shanghai Composite strengthened 12.72 points or 0.4% to 3,214.01 and Hang Seng advanced 182.98 points or 0.89% to 20,501.77.

On the flip side, Nikkei 225 slipped 731.38 points or 1.83% to 39,179.17, Taiwan Weighted lost 279.68 points or 1.2% to 23,012.36 and KOSPI dropped 20.00 points or 0.76% to 2,613.45.