Benchmarks trade lower amid higher crude oil prices; CPI data eyed

Indian equity benchmarks made cautious start on Wednesday and soon slipped below neutral lines as higher crude oil prices kept investors on edge on uncertainty over a deal to reopen the Strait of Hormuz. Investors also remained on sidelines ahead of consumer price index (CPI) data from India and the U.S. for fresh signals on the rate path. Though, down side remained capped as the government data showed that the net direct tax collection grew 23.09 per cent to over Rs 8.11 lakh crore till August 10 in the current fiscal.

Both Sensex and Nifty were trading lower with over quarter a percent cut in early deals amid selling pressure in FMCG and Healthcare stocks, while buying in Metal and PSU counters kept downside in check. Meanwhile, Foreign institutional investors (FIIs) extended their buying streak on August 11, purchasing Indian equities worth Rs 258.55 crore.

On the global front, most of the Asian markets were trading higher as a fresh rally in technology shares lifted South Korea and Japan, although rising oil prices and uncertainty over a U.S.-Iran agreement kept investors cautious ahead of crucial U.S. inflation data.

The BSE Sensex is currently trading at 77951.48, down by 202.77 points or 0.26% after trading in a range of 77881.10 and 78263.33. There were 7 stocks advancing against 23 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 0.82%, PSU up by 0.61%, Basic Materials up by 0.44%, Bankex up by 0.38% and Capital Goods up by 0.25%, while Realty down by 1.17%, FMCG down by 0.72%, Utilities down by 0.63%, Healthcare down by 0.55% and Consumer Durables down by 0.49% were the top losing indices on BSE.

The top gainers on the Sensex were State Bank of India up by 1.40%, Tech Mahindra up by 1.11%, Asian Paints up by 0.45%, Axis Bank up by 0.33% and HCL Technologies up by 0.17%. On the flip side, Mahindra & Mahindra down by 0.80%, Bharti Airtel down by 0.69%, Hindustan Unilever down by 0.57%, Adani Ports & SEZ down by 0.56% and Titan Company down by 0.52% were the top losers.

Meanwhile, expressing optimism over India’s growth prospects, SBI Research in its latest report has said that the country’s Gross Domestic Product (GDP) growth is likely to rise to 8% in the first quarter of the current fiscal year (Q1FY27), higher than the Reserve Bank of India’s (RBI) 7% growth projection. It noted that the underlying momentum remains broad-based. It said that, of the more than 50 leading indicators across consumption and demand, agriculture, industry, services and other sectors that it tracks, around 86% are showing acceleration in Q1FY27, compared with 69% in Q1FY26.

It said consumption and demand remain resilient. High-frequency demand indicators continue to support the growth outlook, while industrial activity remains broadly satisfactory, barring a few pockets. Services are providing further support, while other indicators also corroborate its 8% growth estimate. It further said that monsoon conditions have improved, with a nearly 40% rainfall deficit in June partly offset by surplus rainfall in July and normal rains in August, bringing the overall deficit down to around 12%. Positive Indian Ocean Dipole (IOD) conditions could also partly offset the impact of El Nino. It noted that July’s high-frequency indicators and the progress of the monsoon suggest continued growth momentum. Therefore, it believes that growth is likely to remain robust going forward.

However, it cautioned that after the rupee breached Rs 96 per dollar, the currency recovered but has since been moving around Rs 95-95.5 per dollar, warranting a calibrated policy response from the RBI. As per the report, it is important to keep rupee depreciation at bay due to financial stability concerns, as the recent depreciation calls for stronger signaling.

The CNX Nifty is currently trading at 24402.55, down by 69.15 points or 0.28% after trading in a range of 24390.60 and 24473.30. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Hindalco Industries up by 3.21%, Grasim Industries up by 1.41%, State Bank of India up by 1.36%, Tech Mahindra up by 0.68% and Nestle India up by 0.46%. On the flip side, Max Healthcare down by 1.75%, Apollo Hospital down by 1.50%, Bajaj Finserv down by 1.06%, Dr. Reddy's Lab down by 1.01% and Titan Company down by 1.00% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 417.78 points or 0.62% to 67,388.00, KOSPI jumped 288.83 points or 4.55% to 6,634.36, Taiwan Weighted strengthened 244.76 points or 0.54% to 45,365.48, Jakarta Composite gained 31.83 points or 0.51% to 6,299.71 and Shanghai Composite was up by 12.42 points or 0.32% to 3,946.51. On the other hand, Hang Seng declined 290.82 points or 1.15% to 25,362.00 and Straits Times fell 21.77 points or 0.38% to 5,732.40.