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Benchmark indices trade under pressure in early deals; Axis Bank slips over 5%
Jul-25-2024

Indian equity benchmarks made gap-down opening on Thursday tracking sell-off in the global markets. Domestic indices are trading lower with notable losses in early deals amid foreign fund outflows. Foreign institutional investors (FIIs) net sold stocks worth Rs 5,130.90 crore in the cash market on July 24. Renewed concerns over an unexpected increase in short and long-term capital gains taxes continue to keep underlying sentiment cautious. Traders overlooked Revenue Secretary Sanjay Malhotra’s statement that the direct tax slabs rejig announced in the Union Budget amounting to savings of Rs 17,500 for the middle class along with an increase in the rebate limit to Rs 7 lakh in the new tax regime last year is ‘sufficient’ relief over a period of two years. 

On the global front, Asian markets are trading mostly lower, following the broadly negative cues from global markets overnight, led by steep declines for technology stocks, which mirrored their peers on the tech-heavy Nasdaq, after a few big name U.S. tech firms reported disappointing quarterly numbers. Lingering concerns over slowing growth in the world's second largest economy, China, also kept investors nervous. Meanwhile, Services producer prices in Japan were up 3.0 percent on year in June. 

Back home, shipping industry stocks are in focus as Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said that a new policy will be unveiled soon, giving a push to India’s ambitious plan to be part of the top five shipbuilding nations by 2047. In stock specific development, Axis Bank leading the losers on the bourses as the bank’s loan loss provisions rose significantly during Q1FY25, coupled with weak asset quality.

The BSE Sensex is currently trading at 79585.97, down by 562.91 points or 0.70% after trading in a range of 79477.83 and 79770.32. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.59%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.75%, Industrials up by 0.40%, Oil & Gas up by 0.14% and Auto up by 0.01%, while Bankex down by 1.64%, Metal down by 1.59%, Basic Materials down by 0.95%, Consumer Durables down by 0.70% and PSU down by 0.65% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.34%, Larsen & Toubro up by 2.06%, HCL Technologies up by 0.24%, Bajaj Finance up by 0.23% and HDFC Bank up by 0.19%. On the flip side, Axis Bank down by 5.89%, ICICI Bank down by 1.69%, Power Grid down by 1.54%, Tata Steel down by 1.53% and JSW Steel down by 1.24% were the top losers.

Meanwhile, with a broader aim to elevate strategic partnership to the next level, India and the UK have firmed up a landmark technology security initiative (TSI) that sets out a bold new approach for collaboration in a range of ‘priority’ sectors including telecom, critical minerals, semiconductors and artificial intelligence. External Affairs Minister S Jaishankar and British counterpart David Lammy have held talks on the UK-India Technology Security Initiative. The Ministry of External Affairs (MEA) said in the discussions, both sides appreciated the ‘substantial’ progress made in the India-UK FTA negotiations and looked forward to its ‘early conclusion’ to achieve a mutually beneficial deal.

The Indian side flagged its concerns over activities of pro-Khalistan elements in the UK while the British side raised the issue of Christian Michel, the key accused in the AgustaWestland VVIP chopper case, who is languishing in a jail in India. In the talks, the two sides agreed to deepen defence and security cooperation, in the Indo-Pacific and beyond, and to enhance capacities to address growing threats from ‘non-state actors’.

The collaboration under TSI will include government, private sector, academia and research and development institutions. The initiative was ‘spearheaded and agreed’ by the NSAs of the two countries. The TSI seeks to build upon the ambitious cooperation agenda set out in the India-UK Roadmap 2030. Jaishankar and Lammy also discussed the migration and mobility partnership between the two countries with a view to strengthen people-to-people ties. They also discussed India-UK collaboration in the field of climate and green economy. 

The two sides deliberated on regional and global issues of mutual interest, including the Russia-Ukraine conflict, the situation in West Asia and the Red Sea. In their talks, Jaishankar and Lammy also reviewed the implementation of the India-UK roadmap that seeks to broad-base the ties in a range of areas. In 2021, India and the UK adopted the 10-year roadmap to expand ties in the key areas of trade and economy, defence and security, climate change and people-to-people connections among others.

The CNX Nifty is currently trading at 24262.95, down by 150.55 points or 0.62% after trading in a range of 24210.80 and 24300.10. There were 10 stocks advancing against 39 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.64%, Tata Motors up by 2.56%, Larsen & Toubro up by 1.68%, ONGC up by 1.24% and HDFC Life Insurance up by 0.20%. On the flip side, Axis Bank down by 5.78%, Hindalco down by 2.32%, ICICI Bank down by 2.10%, Shriram Finance down by 1.86% and Tata Steel down by 1.55% were the top losers.

Asian markets are trading lower; Nikkei 225 slipped 1049.35 points or 2.68% to 38,105.50, Hang Seng declined 246.08 points or 1.42% to 17,064.97, KOSPI dropped 41.88 points or 1.52% to 2,716.83, Jakarta Composite lost 32.51 points or 0.45% to 7,230.25, Straits Times fell 26.74 points or 0.77% to 3,434.08 and Shanghai Composite was down by 12.33 points or 0.43% to 2,889.62.
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