Key gauges remain in red in morning deals

Indian equity benchmarks continued to trade lower in morning deals, due to losses in FMCG, Auto and Consumer Durables stocks. Traders remained cautious as the government data showed that Foreign direct investment (FDI) equity inflow in India fell 24.5 per cent year-on-year to $9.34 billion in the January-March quarter of 2024-25 but grew 13 per cent at $50 billion during the entire previous financial year. Traders remained on sidelines ahead of key economic data releases, including industrial and manufacturing production figures for April due on Wednesday. However, losses remain capped as some support came with the apex exporters' body -- Federation of Indian Export Organisations (FIEO) has suggested that the country's overall goods and services exports are likely to reach $1 trillion during 2025-26. Meanwhile, the exports were aggregated at $825 billion in 2024-25. On the global front, Asian markets are trading mostly in green on promising economic signs in the United States and speculation of strong tech earnings.

The BSE Sensex is currently trading at 81317.41, down by 234.22 points or 0.29% after trading in a range of 81244.02 and 81613.36. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.08%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Telecom up by 1.43%, Realty up by 0.79%, Power up by 0.45%, Industrials up by 0.32% and Utilities up by 0.30%, while FMCG down by 1.20%, Auto down by 0.62%, Consumer Durables down by 0.59%, Metal down by 0.38%, Consumer discretionary down by 0.35% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.59%, Adani Ports &Special up by 0.48%, NTPC up by 0.34%, Infosys up by 0.31% and Axis Bank up by 0.23%. On the flip side, ITC down by 2.90%, Mahindra & Mahindra down by 1.02%, Titan Company down by 0.81%, Asian Paints down by 0.72% and Reliance Industries down by 0.61% were the top losers.

Meanwhile, the Federation of Indian Export Organisations (FIEO) has said that Indian export consignments have gradually started moving through the Red Sea route again. The gradual movement signals a cautious recovery in shipments after months of disruptions on the route caused by regional tensions. Last year, the situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, escalated due to attacks by Yemen-based Houthi militants.

Due to attacks, the shippers were taking consignments through the Cape of Good Hope, encircling the African continent, resulting in delays of almost 14-20 days and higher freight and insurance costs. FIEO Director General Ajay Sahai said that ‘Consignments are gradually going through this important sea route. It will cut transportation time.’ He also said freight rates have stabilised because of a dip in ship demands from China.

Around 80 per cent of India's merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country's total exports. The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. About 95 per cent of the vessels had rerouted around Cape of Good Hope adding 4,000-6,000 nautical miles and 14-20 days to journeys.

The CNX Nifty is currently trading at 24750.50, down by 75.70 points or 0.30% after trading in a range of 24737.05 and 24864.25. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 0.97%, JIO Financial Services up by 0.58%, Bharti Airtel up by 0.54%, Adani Ports &SEZ up by 0.51% and Infosys up by 0.34%. On the flip side, ITC down by 2.93%, Bajaj Auto down by 1.33%, Apollo Hospital down by 1.31%, Nestle down by 1.23% and Mahindra & Mahindra down by 1.08% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 74.74 points or 0.2% to 37,798.85, Taiwan Weighted added 0.59 points or 0% to 21,337.13, KOSPI increased 35.98 points or 1.35% to 2,673.20, Straits Times rose 19.05 points or 0.49% to 3,915.14 and Shanghai Composite strengthened 2.24 points or 0.07% to 3,342.93.

On the flip side, Hang Seng declined 127.54 points or 0.55% to 23,254.45 and Jakarta Composite plunged 2.13 points or 0.03% to 7,196.84.