Benchmarks continue to trade under pressure in morning deals

Indian equity benchmarks remained under pressure in morning deals, dragged by Oil & Gas, Energy and Banking stocks amid rising tensions between Israel and Iran, coupled with rising oil prices. Traders remained cautious as exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 3,831.42 crore on a net basis on Thursday. Traders overlooked government data showing that retail inflation dipped to an over six-year low of 2.82 per cent in May mainly due to subdued prices of food items, including vegetables, fruits, and protein-rich items. The Consumer Price Index (CPI) based retail inflation was 3.16 per cent in April and 4.8 per cent in May 2024. On the global front, Asian markets are trading lower with lingering U.S.-China trade uncertainty and escalating tensions in the Middle East keeping investors worried. There was no relief from the U.S.-China trade truce as the much-hyped framework agreement lacked specifics.  

The BSE Sensex is currently trading at 80959.13, down by 732.85 points or 0.90% after trading in a range of 80354.59 and 80961.93. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.46%, while Small cap index was down by 0.42%.

The lone gaining sectoral index on the BSE was IT up by 0.03%, while Oil & Gas down by 1.20%, Energy down by 1.15%, Bankex down by 1.14%, FMCG down by 0.93% and Utilities down by 0.93% were the top losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 2.27% and Tech Mahindra up by 0.57%. On the flip side, Adani Ports &SEZ down by 2.09%, Kotak Mahindra Bank down by 1.75%, SBI down by 1.71%, Ultratech Cement down by 1.63% and Power Grid Corporation down by 1.49% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India is open to mutually beneficial arrangements on implementing norms related quality standards with its trusted trading partners. He said India is implementing QCOs (quality control orders) to promote manufacturing of quality goods in the country. He stated the rules, standards, and process are the same for domestic as well imported goods and India does not discriminate between domestic manufacturers and foreign suppliers. Moreover, he said that equal treatment is given to companies of all the countries.

He stated ‘We are open to suggestions. We are in dialogue with several nations on a mutual benefit basis and a mutual recognition basis, if other nations are willing to respect the high quality goods that India makes and allow us to do our own certification process. We are happy to allow our trusted partners to do the same.’ He added that all such relationships will be based on mutual respect for each other's regulations.

The US and the EU, among others, have raised issues pertaining to these QCOs. The EU has sought simpler certification processes under these orders. QCOs are designed to prevent the import of substandard goods and ensure consumer access to high-quality products. The number of products under QCO coverage has witnessed a significant jump from 106 in 2014 to over 732 products by October 2024. The move aligns with India's broader strategy to enhance domestic manufacturing standards while curbing the influx of low-quality imports.

The CNX Nifty is currently trading at 24659.95, down by 228.25 points or 0.92% after trading in a range of 24473.00 and 24663.75. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Bharat Electronics up by 2.17%, ONGC up by 0.63%, Tech Mahindra up by 0.46%, Wipro up by 0.30% and Apollo Hospital up by 0.26%. On the flip side, Adani Ports &SEZ down by 2.13%, Shriram Finance down by 1.88%, SBI down by 1.76%, Ultratech Cement down by 1.70% and Reliance Industries down by 1.64% were the top losers.

All Asian markets are trading lower; Nikkei 225 slipped 453.98 points or 1.19% to 37,719.11, Taiwan Weighted lost 157.54 points or 0.71% to 22,130.28, Hang Seng declined 168.52 points or 0.71% to 23,866.86, KOSPI dropped 41.14 points or 1.41% to 2,878.89, Straits Times fell 19.22 points or 0.49% to 3,902.98, Jakarta Composite plunged 46.25 points or 0.65% to 7,158.12 and Shanghai Composite weakened 24.65 points or 0.73% to 3,378.01.