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Domestic indices erase all losses in late morning deals
Oct-04-2024

Domestic equity indices erased all losses and were trading in green in late morning deals as investors opted to buy beaten down but fundamentally strong stocks. Buying in Infosys, Tech Mahindra, Indusind Bank, Titan and Axis Bank helped the markets to trade higher. Market participants overlooked report that the HSBC final India Services purchasing managers' index, compiled by S&P Global, fell to 57.7 in September from a five-month high of 60.9 in August and was below a preliminary estimate of 58.9. Growth in India's dominant services sector remained robust but slackened to a 10-month low in September as demand slowed. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK, Bankex, Metal and Consumer Durables, while selling was witnessed in Realty, Auto, Utilities, Consumer Disc and Power. 

On the global front, Asian markets were trading mostly in green despite negative cues from the US markets overnight. Back home, Oil Marketing Companies such as HPCL, BPCL, IOCL were trading lower as crude oil prices rose over 5 percent yesterday.  

The BSE Sensex is currently trading at 82769.12, up by 272.02 points or 0.33% after trading in a range of 82051.86 and 82935.99. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.07%, while Small cap index up by 0.25%.

The top gaining sectoral indices on the BSE were IT up by 1.53%, TECK up by 1.07%, Bankex up by 0.62%, Metal up by 0.37% and Consumer Durables up by 0.31%, while Realty down by 1.76%, Auto down by 0.58%, Utilities down by 0.40%, Consumer Disc down by 0.35% and Power down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.37%, Tech Mahindra up by 1.93%, Indusind Bank up by 1.34%, Titan up by 1.28% and Axis Bank up by 1.14%. On the flip side, Mahindra & Mahindra down by 1.53%, Bajaj Finance down by 1.24%, Asian Paints down by 1.14%, Nestle down by 0.81% and Bharti Airtel down by 0.65% were the top losers.

Meanwhile, Credit rating agency ICRA in its latest report has said that the revenues of the Indian road logistics industry are likely to grow by a moderate 6-9% YoY in FY25. Following some disruption in business activities during Q1 amidst the General Elections, the sector prepares for the much-awaited seasonally strong festive period. It said an increase in manufacturing output amidst restocking and an uptick in consumer spending and e-commerce activities augur well for logistics demand. This, coupled with a favourable monsoon and the government’s continued thrust on capital formation, is likely to support revenue growth. ICRA maintains a ‘Stable’ outlook for the sector, fuelled by various Government measures and policies in favour of the sector and the expectation of a stable demand outlook from varied segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods. 

ICRA foresees organised players to maintain the pricing premium amid an overall inflationary cost scenario and shall support operating profitability in FY25. Nevertheless, it would remain range-bound and trail the peak levels seen in FY23. The debt coverage metrics are expected to remain comfortable in FY25, despite some anticipated increase in debt levels due to capex for new vehicles, coupled with the rise in lease liabilities due to expanding branch network and technology investments. ICRA projects the interest coverage and total debt/ OPBITDA in the range of 7.0x-8.0x and 1.4x-1.7x, respectively, in FY25 compared to 7.6x and 1.6x in FY24.

It said the e-way monthly volumes have grown steadily over the years and remained largely stable in the last four months at above 100 million, with August 2024 reporting all-time high volumes of 105 million, signifying resilient domestic trade and transportation activities. The monthly FASTag volumes have also moved in tandem with the e-way bills, ranging from 295 to 350 million in FY24 and in the current fiscal, with an all-time peak of 348 million in December 2023, reflecting business continuity

The CNX Nifty is currently trading at 25305.80, up by 55.70 points or 0.22% after trading in a range of 25094.55 and 25360.30. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.27%, ONGC up by 2.09%, Tech Mahindra up by 1.87%, Wipro up by 1.68% and Titan up by 1.36%. On the flip side, Shriram Finance down by 1.80%, Mahindra & Mahindra down by 1.59%, Hero MotoCorp down by 1.51%, Cipla down by 1.46% and Bajaj Finance down by 1.33% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 520.39 points or 2.3% to 22,633.90, Straits Times rose 0.9 points or 0.03% to 3,578.33, KOSPI increased 12.78 points or 0.5% to 2,574.47 and Nikkei 225 surged 28.56 points or 0.07% to 38,580.62. However, Jakarta Composite plunged 43.55 points or 0.58% to 7,500.28 and Taiwan Weighted lost 137.01 points or 0.62% to 22,253.38. 
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