Key gauges continue to trade lower in morning deals

Indian equity benchmarks continued to trade lower in morning deals, dragged by selling in Utilities, Power and Banking stocks and weak cues from Asian markets ahead of a closely watched speech by US Federal Reserve Chair Jerome Powell. However, losses remain capped as traders took some support with exchange data showed Foreign Institutional Investors (FIIs) bought equities worth Rs 931.80 crore on Wednesday. Sector-wise, stocks related to defence sector remained in watch as the Defence Minister Rajnath Singh stated that in a big boost amid India-Pakistan conflict, India’s defence exports have surged from Rs 686 crore in 2013-14 to Rs 23,622 crore in 2024-25, marking a remarkable 34-fold increase over the past decade. On the global front, Asian markets were trading mostly in red as investors turned to the sidelines following four days of gains amid US-China trade deal as well as hopes of strong AI demand. The sentiment boosted by the US-China trade deal now seems to be fading, also investors are awaiting US deal with the rest of the Asian economies. 

The BSE Sensex is currently trading at 80968.39, down by 362.17 points or 0.45% after trading in a range of 80762.16 and 81439.04. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.28%, while Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.82%, Metal up by 0.74%, Auto up by 0.49%, Industrials up by 0.46% and Realty up by 0.42%, while Utilities down by 0.68%, Power down by 0.49%, Bankex down by 0.49%, TECK down by 0.48% and IT down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.74%, Adani Ports &SEZ up by 0.86%, Tata Steel up by 0.29%, Ultratech Cement up by 0.12% and Tech Mahindra up by 0.05%. On the flip side, NTPC down by 1.70%, Power Grid Corporation down by 1.60%, Indusind Bank down by 1.27%, Infosys down by 1.16% and Kotak Mahindra Bank down by 1.05% were the top losers.

Meanwhile, Indian defence exports being at all-time highs, the Defence Minister Rajnath Singh has said that India exported defence goods worth Rs 23,622 crore in 2024-25, a 34-fold rise as against just Rs 686 crore in 2013-14. The defence minister asserted that India's defence sector is growing stronger than ever, driven by the spirit of a self-reliant or Atmanirbhar Bharat.

As part of its 'Atmanirbhar' and Make in India plans, the government launched various schemes, including the production-linked incentive (PLI), in various sectors to make Indian manufacturers globally competitive, attract investments, enhance exports, integrate India into the global supply chain, and reduce dependency on imports.

The defence minister highlighted that country’s defence production has surged to historic highs led by government's thrust on the Make in India initiative. Besides, this rise in defence manufacturing has also led to substantial returns for investors in major defence manufacturing PSUs over the past years. He added the government is investing heavily in defence and aerospace manufacturing, with several defence hubs being set up and many global companies have either shared or shown intent to share critical defence and aerospace knowledge with India.

The Ministry of Defence data showed that wide range of items, including ammunition, arms, subsystems/systems, and parts and components, were exported to around 80 countries in the just-concluded financial year. Further, the government is now aiming for annual exports worth Rs 50,000 crore by 2029, thus strengthening its global footprint.

The CNX Nifty is currently trading at 24567.55, down by 99.35 points or 0.40% after trading in a range of 24494.45 and 24706.75. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.92%, Hero MotoCorp up by 2.75%, Shriram Finance up by 2.12%, Tata Motors up by 1.73% and Adani Ports &SEZ up by 0.81%. On the flip side, NTPC down by 1.52%, Power Grid Corporation down by 1.50%, Cipla down by 1.28%, Dr. Reddy's Lab down by 1.25% and Indusind Bank down by 1.25% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 358.42 points or 0.94% to 37,769.71, Taiwan Weighted lost 17.54 points or 0.08% to 21,765.33, Hang Seng declined 59.36 points or 0.25% to 23,581.29, KOSPI dropped 14.27 points or 0.54% to 2,626.30 and Shanghai Composite weakened 14.2 points or 0.42% to 3,389.75.

On the flip side, Straits Times rose 15.97 points or 0.41% to 3,887.02 and Jakarta Composite gained 88.18 points or 1.26% to 7,068.06.