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Sensex, Nifty off day’s lows during early noon deals
Jul-25-2024

Indian equity benchmarks came off from their intraday low points in early afternoon deals but remained lower, amid weak cues from other Asian markets. The renewed concerns over an unexpected increase in short and long-term capital gains taxes in the Budget also weighed on sentiment. Traders got cautious, amid  a private report stating that foreign investors sold nearly $1 billion worth of Indian equities in the two days since the government raised taxes on derivatives trades and on capital gains from equity investments in its annual budget.

On the global front, Asian markets were trading lower, after services producer prices in Japan were up 3.0 percent on year in June, accelerating from the upwardly revised 2.7 percent increase in May (originally 2.5 percent). On a monthly basis, producer prices were flat for a second straight month. Excluding international transportation, services producer prices were also flat on month and up 3.0 percent on year.

Back home, cement industry stocks were in focus, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has showed that India’s cement demand is likely to be supported by the government’s sustained focus on capex towards infrastructure projects in the budget of FY25, albeit at a moderated pace of growth of 5%-7% YoY (FY24: 8%-9%) as expected by the agency.

The BSE Sensex is currently trading at 79924.32, down by 224.56 points or 0.28% after trading in a range of 79477.83 and 79978.51. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.37%, while Small cap index was down by 0.05%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.20%, Energy up by 1.44%, Capital Goods up by 1.15%, Power up by 0.90% and Auto up by 0.82%, while Bankex down by 1.40%, Consumer Durables down by 1.33%, Metal down by 1.17%, Realty down by 0.96% and Basic Materials down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.80%, Larsen & Toubro up by 2.74%, Power Grid up by 1.01%, Kotak Mahindra Bank up by 0.94% and HDFC Bank up by 0.69%. On the flip side, Axis Bank down by 6.66%, Nestle down by 3.09%, Titan down by 2.43%, ICICI Bank down by 1.63% and Tata Steel down by 1.50% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has showed that India’s cement demand is likely to be supported by the government’s sustained focus on capex towards infrastructure projects in the budget of FY25, albeit at a moderated pace of growth of 5%-7% YoY (FY24: 8%-9%) as expected by the agency.

The rating agency noted that the capex spending at Rs 11.1 trillion in the Union Budget FY25 is same as was in the interim budget FY25. However, it said that the announcements made in this budget towards infrastructure development in Bihar and Andhra Pradesh would aid the cement demand growth in these regions over the near term.  

It said the infrastructure development plans announced in the budget should lead to an increase in cement demand growth in eastern India, which has remained subdued in the recent past, while south-based cement companies, particularly ones with exposure to Andhra Pradesh, could see demand traction over the next few years. According to Ind-Ra, the focus on agriculture and rural development bodes well for the cement demand, given 37%-38% of cement demand is derived from rural housing.

The CNX Nifty is currently trading at 24368.60, down by 44.90 points or 0.18% after trading in a range of 24210.80 and 24379.20. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.83%, ONGC up by 3.29%, Larsen & Toubro up by 2.74%, BPCL up by 2.54% and SBI Life Insurance up by 2.40%. On the flip side, Axis Bank down by 6.63%, Nestle down by 2.99%, Titan down by 2.61%, Shriram Finance down by 2.17% and Hindalco down by 1.73% were the top losers.

All Asian markets were trading lower; Hang Seng declined 298.55 points or 1.72% to 17,012.50, Jakarta Composite plunged 37.76 points or 0.52% to 7,225.00, Shanghai Composite weakened 13.09 points or 0.45% to 2,888.86, Straits Times fell 31.88 points or 0.92% to 3,428.94, KOSPI dropped 48.06 points or 1.77% to 2,710.65 and Nikkei 225 slipped 1285.34 points or 3.39% to 37,869.51.
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