Markets continue to trade below neutral lines

Indian equity markets continued to trade below neutral lines in late afternoon session after U.S. President Donald Trump accused India and China of being the primary funders of Russia's war in Ukraine through their continued purchase of Russian oil. Besides, fund outflows by foreign institutional investors (FIIs) have weighed on the trading sentiments. The FIIs were the net seller on yesterday’s session, offloading equities worth Rs 3,551.19 crore. Meanwhile, traders overlooked Organization for Economic Cooperation and Development raising India's Gross Domestic Product (GDP) growth by 40 bps to 6.7 per cent for fiscal year 2025-26 (FY26) from its earlier projection of 6.3 per cent in June -- driven by strong domestic demand and robust GST reforms.

On the global front, cautiousness prevailed in Asian and European markets following Federal Reserve Chair Jerome Powell comments on equity prices being overvalued.

The BSE Sensex is currently trading at 81814.12, down by 287.98 points or 0.35% after trading in a range of 81607.84 and 82045.47. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.66%, while Small cap index down was by 0.29%.

The lone gaining sectoral index on the BSE was FMCG up by 0.28%, while Realty down by 2.31%, Auto down by 0.81%, Capital Goods down by 0.75%, Bankex down by 0.72%, Utilities down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 1.92%, Hindustan Unilever up by 1.53%, NTPC up by 1.49%, Larsen & Toubro up by 0.97% and HCL Technologies up by 0.82%. On the flip side, Tata Motors down by 2.42%, Bharat Electronics down by 1.67%, Tech Mahindra down by 1.41%, Ultratech Cement down by 1.24% and ICICI Bank down by 0.96% were the top losers.

Meanwhile, Ratings agency ICRA in its latest report has said that the Goods and Services Tax (GST) cut is likely to reduce overall construction expenses in rural housing by 0.8%-1.0%, boosting volumes and supported enhanced capacity addition. It said backed by the healthy cement demand, average cement realisation (ex-factory price excluding GST) to rise by 3-5% in FY2026, even as the input prices are expected to remain range-bound, boosting the operating profit of cement companies by Rs 100-150 per metric tonne (MT).  

The report said cement volumes increased by 8.5% in 5M FY2026 due to strong demand from the housing and infrastructure segments, despite the early onset of the monsoons in a few regions. Cement prices have increased by around 7.4% in 5M FY2026 on a YoY basis, with major hikes in the northern and eastern regions. The trajectory of input prices, especially for pet coke and freight, are linked to global crude, which remains exposed to geopolitical dynamics. 

ICRA stated that with the estimated increase in cement realisation, along with likely stable cost structure, the OPBIDTA/MT for ICRA’s sample set is estimated to increase by 12-18% to Rs. 900-950/MT in FY2026. In FY2025, the OPBIDTA/MT had declined by 16% YoY due to weak realisations (especially during H1 FY2025, because of extended monsoon and impact on Government capex amid the General Elections). Overall, the credit profile of large cement producers is expected to remain stable, driven by a healthy growth in operating income, expected improvement in operating margins and comfortable leverage metrics. The industry has witnessed consolidation in recent years, and the performance of larger players is expected to outperform compared to that of mid-size players in the medium term. 

The CNX Nifty is currently trading at 25098.70, down by 70.80 points or 0.28% after trading in a range of 25027.45 and 25149.85. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 1.99%, NTPC up by 1.52%, Hindustan Unilever up by 1.46%, Tata Consumer Products up by 1.31% and JSW Steel up by 1.31%. On the flip side, Tata Motors down by 2.40%, Wipro down by 1.91%, Bharat Electronics down by 1.83%, Hero MotoCorp down by 1.61% and Indusind Bank down by 1.61% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 surged 54.34 points or 0.12% to 45,548.00, Hang Seng advanced 424.88 points or 1.6% to 26,584.00 and Shanghai Composite strengthened 31.81 points or 0.83% to 3,853.64, while Taiwan Weighted lost 50.64 points or 0.19% to 26,196.73, Straits Times fell 12.79 points or 0.3% to 4,289.88, Jakarta Composite plunged 2.92 points or 0.04% to 8,122.28 and KOSPI dropped 14.05 points or 0.4% to 3,472.14.

European equity markets were trading lower; UK’s FTSE 100 decreased 15.67 points or 0.17% to 9,207.65, France’s CAC fell 33.42 points or 0.42% to 7,838.60 and Germany’s DAX lost 47.53 points or 0.2% to 23,563.80.