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Markets add more losses in late morning deals
Nov-13-2024

Indian equity markets added more losses in late morning deals on account of selling by funds and retail investors. Meanwhile, the broader markets were facing the heat of selling; the BSE mid-cap index declined by 1.73 per cent and the small-cap index was down 2.18 per cent.  Hectic selling in Mahindra & Mahindra, Tata Steel, JSW Steel, SBI and Sun Pharma companies’ stocks dragged the markets to near low points of day. Weak cues from the global markets weighed on the domestic markets. Further, market sentiment remained cautious amid continued foreign portfolio investor (FPI) selling. As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 3,024.31 crore on November 12. Most of the sectoral indices on BSE were trading in red, with only exception of Utilities counter. Stocks from Realty, Auto, Industrials, Basic Materials and Metal counters were the prominent losers.

On the global front, Asian markets were trading mostly in red following negative cues from the US markets overnight. Traders were cautious as the Bank of Japan said producer prices in Japan were up 0.2 percent on month in October. That exceeded expectations for a flat reading and was down from the upwardly revised 0.3 percent in September (originally flat). Back home, in the stock specific development, PNC Infratech fell after the company reported a weak set of numbers in the September quarter of financial year 2025 (Q2FY25).

The BSE Sensex is currently trading at 78232.68, down by 442.50 points or 0.56% after trading in a range of 78129.24 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 was down by 1.73%, while Small cap index down by 2.18%.

The only gaining sectoral index on the BSE was Utilities up by 0.05%, while Realty down by 2.18%, Auto down by 1.94%, Industrials down by 1.93%, Basic Materials down by 1.79% and Metal down by 1.78% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.57%, Bharti Airtel up by 0.59%, Tata Motors up by 0.27%, Asian Paints up by 0.21% and Titan up by 0.18%. On the flip side, Mahindra & Mahindra down by 3.50%, Tata Steel down by 2.64%, JSW Steel down by 1.73%, SBI down by 1.26% and Sun Pharma down by 1.22% were the top losers.

Meanwhile, after contracting to a 22-month low of 0.1 percent in August 2024, India's industrial growth rebounded to 3.1 percent in the month of September 2024, as all three major segments - mining, manufacturing and power generation - showed improvement. However, the growth in the Index of Industrial Production (IIP) during the month was lower than 6.4 per cent registered in September 2023. The factory output had turned negative in August, mainly on account of floods affecting mining operations in the different parts of the country. According to the data released by the National Statistical Office (NSO), the Quick Estimates of IIP stood at 146.7 against 142.3 in September 2023. In the April-September period, industrial output increased by 4 percent, compared to revised 6.2 percent a year earlier.

As per the data, mining sector output grew by 0.2 percent, manufacturing production by 3.9 percent and electricity output by 0.5 percent in the month of September 2024. In August, the mining sector output contracted by 4.3 percent and power generation contracted by 3.7 percent. The growth in manufacturing too was muted at 1.1 percent. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2024 stood at 111.7, 147.0 and 206.9 respectively. Within the manufacturing sector, top three positive contributors for the month of September 2024 are - ‘Manufacture of coke and refined petroleum products’ (5.3 percent), ‘Manufacture of basic metals’ (2.5 percent), and ‘Manufacture of electrical equipment’ (18.7 percent). 

As per the use-based classification, the output of primary goods rose by 1.8 percent as against a growth of 8 percent a year earlier and contraction of 2.6 percent in August. The capital goods segment growth decelerated to 2.8 percent in September 2024 from 8.4 percent in the year-ago month, while it was up from 0.5 percent in previous month. The expansion in the intermediate goods segment was 4.2 percent over 6.2 percent in September 2023 and 3.0 percent in August 2024. Infrastructure/construction goods reported a growth of 3.3 percent in September 2024, down from a 10.1 percent expansion in the year-ago period and 2.2 percent in previous month. Consumer durable goods production expanded by 6.5 percent during the reporting month, up from one percent in September 2023 and 5.3 percent in August 2024. Consumer non-durables output grew by 2 percent against a growth of 2.7 percent in September 2023 and a contraction of 4.5 percent in previous month.

The CNX Nifty is currently trading at 23716.80, down by 166.65 points or 0.70% after trading in a range of 23679.35 and 23873.60. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.41%, Trent up by 0.90%, Britannia up by 0.89%, Bharti Airtel up by 0.63% and Tata Motors up by 0.22%. On the flip side, Eicher Motors down by 3.40%, Mahindra & Mahindra down by 3.40%, Hindalco down by 3.25%, Hero MotoCorp down by 3.22% and Tata Steel down by 2.75% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 209.38 points or 1.05% to 19,637.50, Shanghai Composite weakened 12.35 points or 0.36% to 3,409.62, KOSPI dropped 53.63 points or 2.16% to 2,428.94, Nikkei 225 slipped 697.78 points or 1.77% to 38,678.31 and Taiwan Weighted lost 75.63 points or 0.33% to 22,906.14. However, Jakarta Composite gained 6.57 points or 0.09% to 7,328.56 and Straits Times rose 4.55 points or 0.12% to 3,716.03.
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