Bourses continue to trade flat in early afternoon session

Indian markets continued to trade flat in early afternoon session. Traders avoided to take risk ahead of Consumer Price Index (CPI) data, which is due on June 12. Investors took note of a private report that Reserve Bank of India (RBI) has decided to discontinue daily variable rate repo (VRR) auction from June 11 following a review of current and evolving liquidity conditions. The central bank will conduct its last auction on Tuesday, amounting to Rs 25,000 crore. Sector wise, hospitality industry stocks remained in limelight as ICRA said that it has revised the outlook on the Indian Hospitality industry to Stable from Positive, considering the expectations of normalised revenue growth of 6-8% in current finical year (FY26) on the high base, posted after three years of double-digit revenue expansion seen by the industry over FY23 to FY25. On the global front, Asian markets were trading mixed as investors waited for the outcome of U.S.-China talks that could pave the way for easing trade tensions.

The BSE Sensex is currently trading at 82469.15, up by 23.94 points or 0.03% after trading in a range of 82240.40 and 82680.79. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.20%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were IT up by 2.09%, TECK up by 1.37%, Utilities up by 0.70%, Power up by 0.68% and Basic Materials was up by 0.67%, while Realty down by 0.77%, Bankex down by 0.20%, Telecom down by 0.20%, Consumer discretionary down by 0.07% and PSU was down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.89%, HCL Tech up by 2.15%, Infosys up by 2.12%, Tata Motors up by 1.56% and TCS up by 1.49%. On the flip side, Trent down by 1.34%, Eternal down by 1.15%, Asian Paints down by 1.03%, ICICI Bank down by 1.01% and Sun Pharma down by 0.86% were the top losers.

Meanwhile, ICRA has said that it revised the outlook on the Indian Hospitality industry to Stable from Positive, considering the expectations of normalised revenue growth of 6-8% in current finical year (FY26) on the high base, posted after three years of double-digit revenue expansion seen by the industry over FY23 to FY25. It estimates pan-India premium hotel occupancy to hold at 72-74% in FY26, slightly higher than the 70-72% levels witnessed in FY24 and FY25. The average room rates (ARRs) for premium hotels are projected to rise to Rs 8,200-8,500 in FY26, after a healthy Rs 8,000-8,200 in FY25 amid lagging supply additions and several hotels undergoing renovation, refurbishment and upgradation.

ICRA’s sample set, comprising 13 large hotel companies, is likely to report range-bound operating margins of 34-36% for FY26, despite a lower revenue growth. The margins will remain supported by factors like costrationalisation measures and asset-light expansions in recent periods. However, within the sample, it is likely to be a mixed bag, depending on renovations and increase in employee expenses amidst growing demand.  De-leveraging of balance sheets has led to lower interest costs and is likely to support net margins, as well as improvement in credit metrics such as interest cover and Debt/OPBITDA, to more than 2x and less than 5x respectively in FY26. 

Further, it stated foreign tourist arrivals (FTAs) to India are expected remain muted in the next few months in the aftermath of the terror attacks but are estimated to witness gradual recovery thereafter. However, domestic tourism has been the prime demand driver so far and is likely to remain so in the near term. Factors like improvement in infrastructure and air connectivity, favourable demographics, and anticipated growth in large-scale MICE events, with the opening of multiple new convention centres in the last few years, among others shall support the growth over the medium term.

Jitin Makkar, Senior Vice President and Group Head - Corporate Ratings, ICRA, said ‘After three years of strong demand, driven by favourable domestic leisure travel, demand from meetings, incentives, conferences and exhibitions (MICE), including weddings, and business travel, the growth in the Indian hospitality sector is forecast to normalise at 6-8% YoY in FY2026. While the terror attacks in April 2025 and consequent heightened uncertainties in North and West India in May 2025 had led to a surge in cancellation of travel/MICE, the impact has been largely temporary and localised. In recent weeks, there has been a healthy recovery in sentiments following the abatement of the conflict.’

The CNX Nifty is currently trading at 25129.00, up by 25.80 points or 0.10% after trading in a range of 25055.45 and 25199.30. There were 28 stocks advancing against 21 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Grasim Industries up by 4.03%, Tech Mahindra up by 2.94%, Adani Enterprises up by 2.55%, HCL Tech up by 2.15% and Infosys up by 2.04%. On the flip side, Trent down by 1.38%, Eternal down by 1.16%, ICICI Bank down by 1.05%, Asian Paints down by 1.00% and SBI Life down by 0.92% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 451.85 points or 2.03% to 22,242.14, Nikkei 225 surged 122.94 points or 0.32% to 38,211.51, Jakarta Composite gained 99.42 points or 1.4% to 7,212.85 and KOSPI was up by 16.08 points or 0.56% to 2,871.85. On the flip side, Straits Times fell 9.52 points or 0.24% to 3,926.80, Shanghai Composite weakened 14.54 points or 0.43% to 3,385.23 and Hang Seng was down by 35.3 points or 0.15% to 24,146.13.