Key gauges trade flat in morning deals

Indian equity benchmarks erased most of their initial gains and were trading flat in morning deals, as missile attacks between Iran and Israel intensified. Some concern also came as CareEdge Ratings in its latest report stated that construction of national highways (NH) is expected to slow by 7-10% year-on-year to 9,500-10,200 km in current financial year (FY26), due to delays in project awarding and execution challenges. However, downside remained capped as exchange data showed foreign institutional investors (FIIs) purchased equities worth Rs 1,482.77 crore on a net basis on Tuesday. Sector-wise, cement stocks remained in focus as Rating agency India Ratings & Research said that the cement demand, which grew 7 per cent year-on-year in April this year, may be impacted by the early onset of monsoon. On the global front, Asian markets are trading mixed as investors preferred to stay on the sidelines due to rising global crude oil prices and the upcoming US Fed interest rate decision later this week.

The BSE Sensex is currently trading at 81598.88, up by 15.58 points or 0.02% after trading in a range of 81304.10 and 81858.97. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.04%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Auto up by 0.87%, Consumer Discretionary up by 0.62%, Realty up by 0.42%, Telecom up by 0.40% and Consumer Durables up by 0.37%, while IT down by 0.55%, TECK down by 0.35%, Metal down by 0.30%, Power down by 0.29% and Utilities down by 0.24% were the losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.94%, Maruti Suzuki up by 1.53%, Mahindra & Mahindra up by 1.40%, Eternal up by 0.61% and Bharti Airtel up by 0.52%. On the flip side, TCS down by 0.94%, Adani Ports &SEZ down by 0.84%, Infosys down by 0.73%, Kotak Mahindra Bank down by 0.62% and Power Grid Corporation down by 0.49% were the top losers.

Meanwhile, CareEdge Ratings in its latest report has said that construction of national highways (NH) is expected to slow by 7-10% year-on-year to 9,500-10,200 km in current financial year (FY26), due to delays in project awarding and execution challenges. It mentioned the National Highways is currently facing a period of slowdown, both in terms of project awarding and execution driven by delays in appointed dates, land acquisition hurdles, increasing project complexities, heightened competitive intensity and execution woes.

The national highways project awarding activity witnessed a 30% decline in FY24 and remained stagnant in 11MFY25 at 4,874 km vs. 4,872 km in 11MFY24. In FY26, it expects an increase in project awards by the Ministry of Road Transport and Highways (MoRTH) over FY25 levels, albeit lower than the historical highs of FY21-FY23. As of December 31, 2024, projects with a Bid Project Cost (BPC) exceeding Rs 40,000 crore have been awaiting their appointed dates for over a year since award, which, along with lower project awards and execution hurdles, is also expected to pull down the execution pace.

Execution hurdles can be attributed to prolonged timelines in receipt of appointed date, increased awards for greenfield expressways and highways complicating land acquisition issues, unavailability of hindrance-free Right of Way (RoW), a standard two-year construction period regardless of the project's complexity, and unprecedented monsoon during FY25, amongst others. To address a few of these bottlenecks, MoRTH issued revised guidelines to streamline pre-construction processes and reduce delays associated with appointed date issuances.

The CNX Nifty is currently trading at 24871.50, up by 18.10 points or 0.07% after trading in a range of 24776.90 and 24947.55. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 4.37%, Trent up by 1.75%, Mahindra & Mahindra up by 1.54%, Maruti Suzuki up by 1.37% and Eicher Motors up by 0.97%. On the flip side, Adani Ports &SEZ down by 0.95%, TCS down by 0.93%, Infosys down by 0.74%, JSW Steel down by 0.72% and Kotak Mahindra Bank down by 0.66% were the top losers.

Asian markets are trading mixed; Straits Times fell 14.26 points or 0.36% to 3,916.38, Jakarta Composite plunged 43.62 points or 0.61% to 7,112.23, Shanghai Composite weakened 5.64 points or 0.17% to 3,381.76 and Hang Seng declined 276.73 points or 1.15% to 23,703.57.

On the flip side, Nikkei 225 surged 291.19 points or 0.76% to 38,827.93, Taiwan Weighted added 44.71 points or 0.2% to 22,256.30 and KOSPI increased 16.99 points or 0.58% to 2,967.29.