Indian equity benchmarks continued to wobble in late afternoon session ahead of weekly expiry of F&O contract of Sensex and tomorrow’s RBI monetary policy committee meet outcome. Investors were optimistic after private reports indicated that the government may consider reducing/ removing taxes on foreign portfolio investors who invest in government securities. However, negative Asian market cues and persistent selling by the foreign institutional investors (FIIs) have weighed on market risk sentiments. FIIs were the net sellers on Wednesday’s session, offloading securities worth Rs 5,616.56 crore.
On the global front, all Asian equity markets were trading lower amid pull back in technology and semiconductor shares following a weak forecast from U.S. chipmaker Broadcom. European equity markets were trading mostly in green after Israel and Lebanon agreed to renew their fragile ceasefire.
The BSE Sensex is currently trading at 74477.49, up by 131.32 points or 0.18% after trading in a range of 73807.30 and 74544.24. There were 13 stocks advancing against 17 stocks declining on the index.
The top gaining sectoral indices on the BSE were Consumer Durables up by 1.85%, Capital Goods up by 1.32%, Telecom up by 1.11%, Industrials up by 1.03%, Consumer Discretionary up by 0.93%, while Metal down by 0.72%, TECK down by 0.40%, IT down by 0.32%, Basic Materials down by 0.27% were the top losing indices on BSE.
The top gainers on the Sensex were Titan Company up by 2.78%, Eternal up by 2.65%, ICICI Bank up by 1.51%, ITC up by 1.23% and Bharat Electronics up by 1.17%. On the flip side, Infosys down by 1.49%, Bajaj Finserv down by 1.05%, Ultratech Cement down by 0.85%, Bharti Airtel down by 0.82% and HCL Technologies down by 0.70% were the top losers.
Meanwhile, Crisil Ratings in its latest report has projected a moderation in operating margins of Indian auto component sector by 100-150 basis points to 10.5-11% this fiscal (FY27) from around 12% last year. The anticipated moderation is primarily attributed to rising input prices and elevated freight costs driven by the ongoing conflict in West Asia.
According to the report, revenue growth, however, is expected to remain resilient, supported by steady demand from original equipment manufacturers (OEMs). OEM demand, which regained momentum post the goods and services tax (GST) rate reduction last year, remains steady with new model launches across passenger vehicles, infrastructure-linked commercial vehicle activity, continued premiumisation in two-wheelers and rising electric vehicle adoption across segments providing the tailwind.
Crisil Ratings further said that the aftermarket is stable, buoyed by large stock of vehicles sold in prior years. The rating agency is also expecting exports to grow 8-9% on-year, on the back of tariff corrections in the United States, the largest export market, though longer shipping routes have increased lead times.
It further noted that the West Asia conflict is reshaping supply-chain dynamics, with direct implications for working capital. Global supply-chain uncertainty is prompting manufacturers to maintain higher buffer stocks to safeguard production schedules. This is likely to increase inventory levels by 15-20 days from the current 80-85 days. The ability to stretch creditors to absorb this impact will vary, with large players better placed given their scale and bargaining power.
The CNX Nifty is currently trading at 23448.50, up by 42.90 points or 0.18% after trading in a range of 23247.30 and 23462.30. There were 25 stocks advancing against 25 stocks declining on the index.
The top gainers on Nifty were Eternal up by 2.77%, Titan Company up by 2.73%, Coal India up by 2.31%, ICICI Bank up by 1.62% and Bajaj Auto up by 1.59%. On the flip side, Infosys down by 1.47%, Hindalco down by 1.26%, Bajaj Finserv down by 1.15%, JSW Steel down by 0.95% and Ultratech Cement down by 0.87% were the top losers.
All Asian equity markets were trading lower; Nikkei 225 slipped 973.13 points or 1.44% to 67,429.00, Taiwan Weighted lost 781.7 points or 1.71% to 45,677.46, Hang Seng declined 383.21 points or 1.52% to 25,250.00, Jakarta Composite plunged 78.02 points or 1.33% to 5,863.05, Shanghai Composite weakened 26.19 points or 0.65% to 4,057.78, Straits Times fell 49.74 points or 0.98% to 5,088.50 and KOSPI dropped 162.08 points or 1.88% to 8,639.41.
European equity markets were trading mostly in green; France’s CAC rose 54.38 points or 0.66% to 8,204.80 and Germany’s DAX gained 10.06 points or 0.04% to 24,806.00, while UK’s FTSE 100 decreased 50.06 points or 0.49% to 10,282.24.
