Domestic indices trade below neutral lines in late morning deals

Domestic equity indices swung between gains and losses and were trading marginally in red amid volatility in late morning deals. Selling in Mahindra & Mahindra, Indusind Bank, Power Grid, Infosys and Bajaj Finance companies’ stocks dragged the markets below the neutral lines. Negative cues from the global markets also weighed on the domestic sentiments. Traders were cautious amid concerns over U.S. President Trump's tariff policies. Market participants overlooked report that India Ratings and Research (Ind-Ra) stated that the Reserve Bank of India’s (RBI's) monetary policy committee (MPC) is expected cut benchmark interest rate by 25 basis points in its policy review meeting next month to push growth.

On the global front, Asian markets were trading mostly red following weak cues from the US markets overnight. Traders were reluctant to make significant moves ahead of the release of the US Fed's preferred readings on US consumer price inflation later in the day. Back home, on the BSE sectoral front, traders were seen pilling up positions in Oil & Gas, Energy, FMCG, PSU and Capital Goods, while IT, TECK, Realty, Auto and Healthcare. 

The BSE Sensex is currently trading at 77483.57, down by 122.86 points or 0.16% after trading in a range of 77309.79 and 77766.70. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.15%, while Small cap index up by 0.54%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.95%, Energy up by 1.32%, FMCG up by 1.13%, PSU up by 0.76% and Capital Goods up by 0.58%, while IT down by 0.73%, TECK down by 0.70%, Realty down by 0.43%, Auto down by 0.39% and Healthcare down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 1.56%, Tata Motors up by 1.56%, Hindustan Unilever up by 1.40%, Eternal up by 1.29% and Kotak Mahindra Bank up by 1.13%. On the flip side, Mahindra & Mahindra down by 2.94%, Indusind Bank down by 1.51%, Power Grid down by 1.44%, Infosys down by 1.23% and Bajaj Finance down by 1.18% were the top losers.

Meanwhile, the Ministry of Finance in its press released has announced its finalised borrowing programme for the first half (H1) of FY 2025-26. The government has planned a Gross Market borrowing of Rs 14.82 lakh crore budgeted for FY 2025-26, of which Rs 8 lakh crore are to be borrowed in H1 through issuance of dated securities, including Rs 10,000 crore of Sovereign Green Bonds to fund environmental positive projects.

The government has planed to borrow Rs 8 lakh crore via 26 weekly auctions with market borrowing spreading over 3, 5, 7, 10, 15, 30, 40 and 50-year securities. Meanwhile, the share of borrowing (including Sovereign Green Bonds) under different maturities will be 5.3% for 3-year maturity, 11.3% for 5-year maturity, 8.2% for 7-year maturity, 26.2% for 10-year maturity, 14% for 15-year maturity, 10.5% for 30-year maturity, 14% for 40-year maturity and 10.5% for 50-year maturity. Besides, the government will continue to reserve the right to exercise greenshoe option to retain an additional subscription of up to Rs 2,000 crore against each of the securities indicated in the auction notifications.

The government will also issue Treasury Bills in the first quarter (Q1) of FY 2025-26 to borrowed Rs 19000 crore for 13 weeks with issuance of Rs 9,000 crore under 91-day T-bill, Rs 5,000 crore under 182-day T-bill and Rs 5,000 crore under 364-day T-bill. The Reserve Bank of India (RBI) has fixed the Ways and Mean Advances (WMA) limit for H1 of FY 2025-26 at Rs 1.50 lakh crore to take care of temporary mismatches in Government accounts.

The CNX Nifty is currently trading at 23584.00, down by 7.95 points or 0.03% after trading in a range of 23504.95 and 23649.20. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.54%, Tata Consumer up by 3.19%, JIO Financial up by 2.41%, Tata Motors up by 1.71% and Nestle up by 1.64%. On the flip side, Mahindra & Mahindra down by 2.97%, Shriram Finance down by 2.17%, Wipro down by 1.82%, Power Grid down by 1.74% and Indusind Bank down by 1.59% were the top losers.

All Asian markets were trading lower; Hang Seng declined 284.38 points or 1.21% to 23,294.42, Shanghai Composite weakened 25.07 points or 0.74% to 3,348.68, Straits Times fell 5.05 points or 0.13% to 3,976.52, KOSPI dropped 54.64 points or 2.1% to 2,552.51, Nikkei 225 slipped 853.03 points or 2.26% to 36,946.94 and Taiwan Weighted lost 298.31 points or 1.38% to 21,653.45.