Sensex, Nifty remain below neutral lines; Consumer Durables stocks fall

Indian equity benchmarks remained below their neutral lines in early afternoon deals, on the back of heavy selling at Consumer Durables and Realty counters, despite positive cues from other Asian markets. However, losses were capped, amid a private report stating that the government's indirect tax collection is expected to increase by 8.3 per cent in the financial year 2025-26 (FY26). The report also noted that this growth is higher than the 7.1 per cent increase seen in FY25 and is mainly driven by rise in GST revenue from strong urban consumption.

On the global front, Asian markets were trading mostly in green, after Indonesia's economy expanded almost at a steady pace in 2024 but far behind President Prabowo Subianto's ambitious goal of 8 percent. In 2024, Southeast Asia's largest economy advanced 5.03 percent, slightly slower than the 5.05 percent growth in 2023. In the fourth quarter, gross domestic product registered an annual growth of 5.02 percent. This follows 4.95 percent growth in the third quarter.

Back home, steel sector stocks were in watch, as India and Japan have held the 3rd Steel Dialogue on February 4, 2025. During the discussions, both sides exchanged insights on the current economic developments in India and Japan, an overview of the steel sector in both countries, the latest trends in the steel industry, the status of steel trade between the two countries, and the international steel market. 

The BSE Sensex is currently trading at 78022.35, down by 248.93 points or 0.32% after trading in a range of 77926.58 and 78551.66. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell by 0.63%, while Small cap index was up by 0.05%.

The only gaining sectoral indices on the BSE were Healthcare up by 0.32% and IT up by 0.26%, while Consumer Durables down by 1.53%, Realty down by 1.12%, PSU down by 0.92%, FMCG down by 0.88% and Metal down by 0.84% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 1.08%, Adani Ports & SEZ up by 1.00%, Indusind Bank up by 0.82%, Infosys up by 0.63% and Tech Mahindra up by 0.60%. On the flip side, Titan down by 1.84%, ITC down by 1.48%, NTPC down by 1.38%, Tata Steel down by 1.34% and Ultratech Cement down by 1.31% were the top losers.

Meanwhile, with an aim to strengthen bilateral cooperation in the steel sector, India and Japan have held the 3rd Steel Dialogue on February 4, 2025. During the discussions, both sides exchanged insights on the current economic developments in India and Japan, an overview of the steel sector in both countries, the latest trends in the steel industry, the status of steel trade between the two countries, and the international steel market. 

The Indian delegation highlighted strategic initiatives by the Government of India to promote ease of doing business, sustained growth in steel demand driven by infrastructure investment, and concrete steps such as the release of the Green Steel Report and the Taxonomy of Green Steel. Additionally, India's firm resolve to promote research and development in the sector, coupled with demographic advantages, presents significant opportunities for Japanese investors.

The Japanese side shared insights into current economic developments and advancements in the Japanese steel industry. They also provided updates on ongoing capacity-building programs and discussed other issues of mutual interest. A key highlight of the meeting was the review of progress and future for ongoing capacity-building initiatives aimed at enhancing technology collaboration and skill development.

Both sides reaffirmed their commitment to deepening cooperation in areas of mutual interest and identifying pathways to further strengthen strategic relationships in the steel sector. The Japanese delegation assured continued support for investments in newer steel technologies in India. In turn, India reiterated its commitment to ensure ease of doing business for Japanese companies under the framework of the dialogue.

The CNX Nifty is currently trading at 23613.85, down by 82.45 points or 0.35% after trading in a range of 23594.35 and 23773.55. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Cipla up by 2.27%, BPCL up by 1.34%, Dr. Reddy's Lab up by 1.23%, HDFC Life Insurance up by 1.14% and Adani Ports & SEZ up by 1.05%. On the flip side, ONGC down by 2.16%, Titan down by 1.95%, Shriram Finance down by 1.85%, NTPC down by 1.44% and ITC down by 1.41% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 186.13 points or 0.9% to 20,783.22, Shanghai Composite strengthened 36.38 points or 1.13% to 3,265.87,Straits Times rose 12.21 points or 0.32% to 3,827.58, KOSPI increased 27.48 points or 1.08% to 2,536.75, Nikkei 225 surged 235.05 points or 0.6% to 39,066.53 and Taiwan Weighted added 155.02 points or 0.66% to 23,316.60, while Jakarta Composite plunged 137.47 points or 1.96% to 6,886.76.