Markets trim opening gains to trade flat in early deals

Indian equity benchmarks made positive start on Monday on account of value buying after previous five sessions of continued selling. But soon markets trimmed their gains and are trading flat in early deals amid mixed cues from Asian counterparts amid a new headwind after Israel hit major oil exporter Iran. Traders were also concerned amid foreign fund outflows. Foreign investors have continued selling in the Indian market, pulling out a massive Rs 85,790 crore (around $10.2 billion) from equities this month due to Chinese stimulus measures, attractive stock valuations, and the elevated pricing of domestic equities. October is turning into the worst-ever month in terms of foreign fund outflows. In March 2020, FPIs withdrew Rs 61,973 crore from equities. Besides, India’s foreign exchange reserves slumped for third straight week, after having scaled an all-time high early this month. 

On the global front, Asian markets are trading mixed, following the mixed cues from Wall Street on Friday, amid lingering concerns the US Fed will lower interest rates slower than previously anticipated after revised data showed US consumer sentiment unexpectedly improved in the month of October. The uncertainty about the outcome of the upcoming U.S. presidential election and rising geopolitical tensions in the Middle East are weighing on market sentiment.

Back home, OMCs are in focus as Crisil Ratings reported oil marketing companies (OMCs) are expected to see a drop in operating profit to $12-14 per barrel in fiscal 2025 from $20 per barrel last fiscal. In stock specific development, Coal India fell after reporting 22% fall in Q2 net profit at Rs 6,275 crore, while ICICI Bank up after 14% jump in standalone Q2 net profit at Rs 11,746 crore.

The BSE Sensex is currently trading at 79610.36, up by 208.07 points or 0.26% after trading in a range of 79418.82 and 79864.74. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.19%, while Small cap index was down by 0.77%.

The top gaining sectoral indices on the BSE were Bankex up by 1.26%, PSU up by 0.16%, Telecom up by 0.07%, IT up by 0.06% and Basic Materials up by 0.04%, while Capital Goods down by 1.23%, Utilities down by 1.12%, Energy down by 1.10%, Power down by 1.03% and Industrials down by 0.99% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 2.90%, SBI up by 2.10%, Infosys up by 0.69%, Indusind Bank up by 0.55% and Hindustan Unilever up by 0.49%. On the flip side, Larsen & Toubro down by 1.58%, Power Grid down by 1.05%, Tech Mahindra down by 0.93%, Bharti Airtel down by 0.84% and ITC down by 0.82% were the top losers.

Meanwhile, expressing optimism over turnover, the Confederation of All India Traders (CAIT) has said that as preparations for Diwali and related festivities are in full swing across Delhi and other parts of the country, traders are expecting a turnover of around Rs 4.25 lakh crore nationwide during this Diwali season. The traders’ body noted that Delhi alone could see business worth around Rs 75,000 crore.

Chandni Chowk MP and CAIT Secretary General Praveen Khandelwal stated that grand preparations are underway in markets across Delhi and nationwide for Diwali and the festive season. Khandelwal shared that shops in metropolitan cities, as well as Tier 2 and Tier 3 cities, towns, and villages, will be decorated in line with the Diwali theme. Emphasis will be placed on colourful lights, rangolis, and other decorations to create a festive atmosphere and attract more people to the markets.

He mentioned that anticipating a sharp increase in demand, traders have already begun stocking various items such as gift items, clothing, jewellery, electronics, mobile phones, furnishings, decor, puja materials, rangolis, deity idols and pictures, ready-made garments, toys, food items, confectionery, electrical goods, consumer durables, and more.

CAIT National President B.C. Bhartia added that traders are also considering discounts and promotional offers to attract customers. Offers like ‘Buy One-Get One’ or special Diwali discounts are likely to entice shoppers. Given the heavy crowds expected during Diwali, traders have requested special arrangements from the police and local administration for security and traffic control, while trade associations are also planning to deploy additional private security guards.

The CNX Nifty is currently trading at 24174.95, down by 5.85 points or 0.02% after trading in a range of 24134.90 and 24292.90. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 5.33%, ICICI Bank up by 2.80%, SBI up by 1.75%, Hindalco up by 1.14% and BPCL up by 0.75%. On the flip side, Coal India down by 5.16%, ONGC down by 3.12%, Larsen & Toubro down by 1.70%, Hero MotoCorp down by 1.47% and Trent down by 1.45% were the top losers.

Asian markets are trading mixed; Taiwan Weighted lost 121.92 points or 0.52% to 23,226.53, Jakarta Composite fell 75.1 points or 0.98% to 7,619.56, Hang Seng declined 49.19 points or 0.24% to 20,540.96 and Straits Times was down by 0.96 points or 0.03% to 3,592.45. On the other hand, Nikkei 225 surged 659.5 points or 1.74% to 38,573.42, KOSPI increased 21.59 points or 0.84% to 2,604.86 and Shanghai Composite was up by 5.6 points or 0.17% to 3,305.30.