Indices extend losses in late morning deals

Domestic equity indices extended their downward movement in late morning deals as investors reduced their positions. Sentiment remained weak as crude oil prices surged in international markets after deadly attacks on vessels in the Red Sea and Gulf of Oman heightened concerns over risks to global shipping routes. Besides, sentiment was weighed down by the weakness in the rupee, which fell by 6 paise to 94.42.

Both the Sensex and Nifty were trading down by over 0.60 percent, weighed down by selling in index heavyweights including Reliance Industries, HDFC Bank, Infosys, Tata Consultancy Services and Larsen & Toubro. On the BSE sectoral front, traders were seen building positions in PSU, Bankex, Metal, Telecom, and Basic Materials, while selling was witnessed in IT, TECK, Realty, Utilities, and FMCG sectors. On the global front, Asian markets were trading mostly in the green despite weak cues from the US markets overnight.   

The BSE Sensex is currently trading at 77647.99, down by 506.26 points or 0.65% after trading in a range of 77573.80 and 78263.33. There were 2 stocks advancing against 28 stocks declining on the index.

The top gaining sectoral indices on the BSE were PSU up by 0.37%, Bankex up by 0.36%, Metal up by 0.26%, Telecom up by 0.17% and Basic Materials up by 0.13%, while IT down by 1.71%, TECK down by 1.23%, Realty down by 1.05%, Utilities down by 1.02% and FMCG down by 0.98% were the top losing indices on BSE.

The only gainers on the Sensex were State Bank of India up by 1.22% and Bajaj Finserv up by 0.49%. On the flip side, TCS down by 4.27%, Mahindra & Mahindra down by 1.75%, Infosys down by 1.70%, Larsen & Toubro down by 1.21% and HCL Technologies down by 1.09% were the top losers.

Meanwhile, Fitch Ratings has reaffirmed India's Long-Term Issuer Default Ratings (IDRs) at BBB- with a stable outlook. India's rating has remained unchanged at 'BBB-', the lowest investment grade, since 2006. It said India's economy remains resilient despite near-term pressures from the energy shock triggered by the West Asia crisis. 

The ratings agency said ‘there are residual risks from uncertainty related to the U.S.-Iran conflict, given India's position as large net energy importer position, but we do not expect a durable risk to growth prospects.’ Fitch estimates India’s GDP will grow 6.4% in the current fiscal year (FY27). However, the growth is slower than the average 7.4% growth clocked over the past three years. 

Fitch said a strengthening record of delivering macroeconomic stability and improving policy credibility should underpin continued robust growth and enhance economic resilience, despite near-term macroeconomic headwinds from the energy shock. It said high growth should also support a sustained improvement in structural credit metrics and increase the likelihood that government debt will trend down.

It further said India's external finances remain solid, with a low current account deficit (CAD), net external creditor position and still high forex reserves. Fitch forecasts a slight widening of the CAD to 1.4% of GDP in FY27 from 0.6% in FY26, from the energy shock.

The CNX Nifty is currently trading at 24305.30, down by 166.40 points or 0.68% after trading in a range of 24293.35 and 24473.30. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Hindalco Industries up by 2.59%, State Bank of India up by 1.17%, Grasim Industries up by 0.98%, Nestle India up by 0.92% and Bajaj Auto up by 0.30%. On the flip side, TCS down by 4.14%, Max Healthcare Inst. down by 2.88%, Tata MotorsPassenger down by 2.56%, Apollo Hospital down by 2.05% and Tata Consumer down by 1.76% were the top losers.

Asian markets were trading mostly in the green; Nikkei 225 surged 575.78 points or 0.86% to 67,546.00, Taiwan Weighted added 328.69 points or 0.73% to 45,449.41, Jakarta Composite gained 62.48 points or 0.99% to 6,330.36, Shanghai Composite strengthened 6.54 points or 0.17% to 3,940.63 and KOSPI increased 235.41 points or 3.71% to 6,580.94. However, Hang Seng declined 274.82 points or 1.07% to 25,378.00 and Straits Times fell 38.51 points or 0.67% to 5,715.66.