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Benchmarks continue to trade lower in morning deals
Nov-13-2024

Indian equity benchmarks continued to trade lower in morning deals, after a rise in October retail inflation reduced expectations of a rate cut by the Reserve Bank of India (RBI) next month. The Consumer Price Index-based inflation rose to 6.21% in October, compared to 5.49% in September, according to data by the Ministry of Statistics and Programme Implementation. This, coupled with weak earnings and ongoing foreign outflows, added to markets concerns. On November 12, foreign institutional investors (FIIs) extended their selling spree, offloading equities worth over Rs 3,000 crore. Traders overlooked the finance ministry’s statement that public sector banks (PSBs) have shown robust performance in the first half of the current fiscal year (H1FY25) with a 26 per cent growth in net profit, increase in business and decline in non-performing assets (NPAs). The aggregate business of 12 PSBs, including State Bank of India and Punjab National Bank, stood at Rs 236.04 lakh crore during the April-September period, registering an 11 per cent year-on-year (YoY) growth. On the global front, Asian markets are trading mostly in red as uncertainty prevailed over U.S.-President-election Trump's policy stance and Fed's policy.

The BSE Sensex is currently trading at 78283.07, down by 392.11 points or 0.50% after trading in a range of 78131.36 and 78690.02. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell1.51%, while Small cap index was down by 2.12%.

The top losing sectoral indices on the BSE were Realty down by 2.02%, Industrials down by 1.88%, Capital Goods down by 1.69%, Auto down by 1.67% and Basic Materials down by 1.57%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were NTPC up by 1.36%, Bharti Airtel up by 0.65%, Bajaj Finance up by 0.55%, Hindustan Unilever up by 0.28% and Asian Paints up by 0.28%. On the flip side, Mahindra & Mahindra down by 3.15%, Tata Steel down by 2.12%, JSW Steel down by 1.62%, Maruti Suzuki down by 1.31% and Power Grid Corporation down by 1.18% were the top losers.

Meanwhile, breaching the Reserve Bank of India’s (RBI) upper tolerance level, India’s retail inflation based on Consumer Price Index (CPI) rose to a 14-month high of 6.21 percent in October 2024, as food inflation galloped on the back of rising vegetable prices. Inflation was 5.49 per cent in September and 4.87 percent in the year-ago month. Retail inflation trended below the RBI’s upper tolerance band of 6 percent since September last year. It was at 6.83 percent in August 2023. The RBI, which mainly factors in the CPI while arriving at its bi-monthly monetary policy, has been tasked by the government to ensure retail inflation remains at 4 percent with a margin of 2 percent on either side.

The NSO, Ministry of Statistics and Programme Implementation (MoSPI) in its data has showed that Rural CPI (General) in October 2024 stood at 6.68 percent over 5.87 percent in September 2024. The Urban CPI (General) stood at 5.62 per cent in October as against 5.05 per cent in September. The index value for Rural, Urban and Combined CPI (General) stood at 199.5, 193.7 and 196.8 respectively, in October 2024. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of October 2024, NSO collected prices from 100.0 percent villages and 98.5 percent urban markets while the market-wise prices reported therein were 88.3 percent for rural and 92.8 percent for urban.

The Consumer Food Price Index (CFPI) recorded a significant year-on-year (Y-o-Y) inflation rate of 10.87 percent, driven largely by rising prices of vegetables, fruits, oils and fats. In September, food inflation stood at 9.24 percent and 6.61 percent in October 2023. Housing inflation also rose, with October 2024 recording a rate of 2.81 percent, slightly up from September’s 2.72 percent. The housing index is calculated only for urban areas. Electricity costs continued their upward trend, with the electricity index rising to 162.5 and a Y-o-Y inflation rate of 5.45 percent in October, compared to 5.39 percent in September. During the month of October, 2024 significant decline in inflation is observed in Pulses & products, Eggs, Sugar & confectionery and spices subgroup.

The CNX Nifty is currently trading at 23729.00, down by 154.45 points or 0.65% after trading in a range of 23679.35 and 23873.60. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.26%, Bharti Airtel up by 0.67%, Bajaj Finance up by 0.47%, Tata Motors up by 0.31% and Asian Paints up by 0.21%. On the flip side, Mahindra & Mahindra down by 3.33%, Bharat Electronics down by 2.74%, Eicher Motors down by 2.51%, Hero MotoCorp down by 2.43% and Hindalco down by 2.43% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 588.4 points or 1.49% to 38,787.69, Hang Seng declined 125.3 points or 0.64% to 19,721.58, KOSPI dropped 53.38 points or 2.15% to 2,429.19 and Shanghai Composite weakened 0.17 points or 0% to 3,421.80. 

On the flip side, Taiwan Weighted added 12.77 points or 0.06% to 22,994.54, Straits Times rose 1.56 points or 0.04% to 3,713.04 and Jakarta Composite gained 9.71 points or 0.13% to 7,331.70. 
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