Key gauges continue to trade flat in morning deals

Indian equity benchmarks continued to trade flat in morning deals, amid unabated foreign fund outflows, monthly derivatives expiry and weak global market cues. Foreign institutional investors (FIIs) offloaded equities worth Rs 3,529.10 crore on Tuesday, according to exchange data. Traders took a note of Moody's Ratings’ statement that India has a lower overall exposure to the US relative to others in the APAC region, although certain sectors such as food, textiles and pharmaceutical products face risks. It said most companies in its rated portfolio are domestic-focused with limited exposure to the US market. However, traders took some support with private report that the worst seems to be over for the Indian economy's growth trajectory. It said GDP growth, which had slipped to a seven-quarter-low of 5.4 per cent in the September quarter leading to a lot of concerns over the economy's strength, is likely to rise to 6.2 per cent in the December quarter. On the global front, Asian markets are trading lower due to prevailing uncertainty over U.S. President Donald Trump's trade policies. 

The BSE Sensex is currently trading at 74572.84, down by 29.28 points or 0.04% after trading in a range of 74556.41 and 74834.09. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.56%, while Small cap index was down by 1.39%.

The top gaining sectoral indices on the BSE were Bankex up by 0.41%, Telecom up by 0.13% and Metal up by 0.02%, while Industrials down by 1.63%, Auto down by 1.41%, Power down by 1.29%, Consumer Disc down by 1.10% and Consumer Durables down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.09%, Bajaj Finance up by 2.48%, Indusind Bank up by 1.76%, Axis Bank up by 1.03% and ICICI Bank up by 0.82%. On the flip side, Ultratech Cement down by 4.83%, Mahindra & Mahindra down by 1.91%, Tata Motors down by 1.75%, HCL Technologies down by 1.21% and ITC down by 1.01% were the top losers.

Meanwhile, the Retailers Association of India (RAI) in its 58th Retail Business Survey has stated that Indian retail sector witnessed a 5 per cent sales growth in the retail sector in January 2025 compared to the same time period last year. The survey highlights key trends shaping various retail segments across different regions of the country and revealed that the highest sales growth witnessed in West India with sales growth of 7 percent, followed by North and South India with sales growth of 5 percent each, while East India experienced sales growth of 4 percent.

RAI CEO Kumar Rajagopalan has said that the 5 percent year on year retail growth recorded in January is led by food and grocery growth at 13 per cent, followed by consumer durables and quick-service restaurant with sales growth at 6 percent each, indicating a rise in consumer spending in these categories. He said the tax exemption limit of Rs 12 lakh provided by the Union Budget 2025 will provide relief to retailers after last year’s slowdown. He further added that the consumer choices are very diverse and retailers must adapt to these shifts, understand evolving preferences, and build the right operating model to stay competitive.

In December 2024, the retail sector registered a year-on-year sales growth of 5 percent. During the same period, highest sales growth of 6 percent was seen in South India followed by West and North India each recorded a 5 percent sales growth, while in East India sales grew at 4 percent. The survey’s findings suggest that consumers are willing to spend where they perceive value and retailers have to adopt with the changing trends and build their strategies accordingly for upcoming seasons.

The CNX Nifty is currently trading at 22535.85, down by 11.70 points or 0.05% after trading in a range of 22526.40 and 22613.30. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 4.48%, Bajaj Finserv up by 3.30%, Bajaj Finance up by 2.58%, Indusind Bank up by 1.61% and JSW Steel up by 1.23%. On the flip side, Ultratech Cement down by 4.66%, Trent down by 2.70%, Hero MotoCorp down by 1.97%, Grasim Industries down by 1.92% and Bajaj Auto down by 1.87% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 21.11 points or 0.06% to 38,121.26, Taiwan Weighted lost 190.43 points or 0.82% to 23,212.12, Hang Seng declined 252.13 points or 1.07% to 23,535.80, KOSPI dropped 28.35 points or 1.09% to 2,612.74, Straits Times fell 4 points or 0.1% to 3,904.05, Jakarta Composite plunged 130.65 points or 2.02% to 6,475.53 and Shanghai Composite weakened 13.76 points or 0.41% to 3,366.45.