Key Indian gauges erase all gains to trade in red

The key gauges slashed all gains to trade in red in late afternoon session. However, market sentiments were positive with broader markets trading higher owing to increasing hope of soothing FPI activity post the Q1FY25 as earnings forecasts bottom out and valuations turn reasonable. The peak in dollar index is expected to support FPI inflow and ease rupee depreciation. Traders also took note of RBI’s liquidity measures that could boost domestic equities, particularly benefiting the BFSI sector. 

On the global front, Asian equity markets were trading in mix, reacting to U.S. President Donald Trump’s latest tariff threats, while the European markets were trading in red owing to geopolitical tensions between Russia-Ukraine, after Ukrainian drone attack on Russian pumping station. Back home, the pharmaceutical stocks took the most hit after Trump’s threat to impose 25 percent tariffs on auto, semiconductor, and pharmaceutical imports.

The BSE Sensex is currently trading at 75737.00, down by 230.39 points or 0.30% after trading in a range of 75581.38 and 76338.58. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index up by 0.71%, while Small cap index was up by 1.91%.

The top gaining sectoral indices on the BSE were Industrials up by 2.14%, Capital Goods up by 1.82%, Realty up by 1.28%, PSU up by 0.94% and Metal up by 0.89%, while TECK down by 1.54%, IT down by 1.43%, Healthcare down by 0.59%, Auto down by 0.32% and FMCG down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 3.78%, Larsen & Toubro up by 1.75%, Axis Bank up by 1.24%, ICICI Bank up by 1.03% and NTPC up by 0.75%. On the flip side, Infosys down by 2.36%, TCS down by 2.30%, Hindustan Unilever down by 2.06%, Sun Pharmaceutical Industries down by 1.73% and Power Grid Corporation of India down by 1.54% were the top losers.

Meanwhile, in order to aid states affected by natural disasters, the High-Level Committee (HLC) has approved Rs 1554.99 crore of additional Central assistance under the National Disaster Response Fund (NDRF) to five States, affected by flood, flash flood, landslides, cyclonic storm during year 2024. 

The HLC approved central assistance of Rs 1554.99 crore to five States from NDRF, subject to an adjustment of 50% of the opening balance for the year available in the State Disaster Response Fund (SDRF). Out of the total amount of Rs 1554.99 crore, Rs 608.08 crore has been approved for Andhra Pradesh, Rs 170.99 crore for Nagaland, Rs 255.24 crore for Odisha, Rs 231.75 crore for Telangana and Rs 288.93 crore for Tripura.

This additional assistance is over and above the funds released by the Centre to the States in the State Disaster Response Fund, already placed at the disposal of the States. During the financial year 2024-25, the Central Government has released Rs 18,322.80 crore to 27 States in SDRF and Rs 4,808.30 crore from NDRF to 18 States, Rs 2208.55 crore from the State Disaster Mitigation Fund (SDMF) to 14 States and Rs 719.72 crore from National Disaster Mitigation Fund (NDMF) to 08 States.

The CNX Nifty is currently trading at 22879.60, down by 65.70 points or 0.29% after trading in a range of 22814.85 and 23049.95. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 2.90%, Larsen & Toubro up by 1.85%, Hindalco up by 1.65%, Axis Bank up by 1.30% and Eicher Motors up by 1.19%. On the flip side, Dr. Reddy's Laboratories down by 3.02%, Infosys down by 2.33%, TCS down by 2.33%, Adani Enterprises down by 2.03% and Hindustan Unilever down by 1.97% were the top losers.

Asian markets are trading mixed; Hang Seng declined 32.57 points or 0.14% to 22,944.24, Jakarta Composite plunged 78.79 points or 1.15% to 6,794.76, Nikkei 225 slipped 105.79 points or 0.27% to 39,164.61 and Taiwan Weighted lost 62.03 points or 0.26% to 23,604.08, while KOSPI increased 44.71 points or 1.67% to 2,671.52, Straits Times rose 1.33 points or 0.03% to 3,926.89 and Shanghai Composite strengthened 27.05 points or 0.81% to 3,351.54.

European markets were trading mostly in red; UK’s FTSE 100 decreased 27.67 points or 0.32% to 8,739.06, France’s CAC fell 13.52 points or 0.16% to 8,193.04, while Germany’s DAX gained 66.69 points or 0.29% to 22,911.19.