HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Domestic indices trade slightly in green in early deals
Nov-14-2024

Indian equity markets have made a cautious start and are trading slightly in green in early deals on Thursday on account of buying in HCL, HDFC Bank, NTPC, Reliance Industries and Axis Bank. Traders are getting some encouragement as S&P Global Ratings has said supply capacity in India is continuing to expand pretty quickly which will help contain inflationary pressure. S&P Senior Economist Asia Pacific Vishrut Rana has said the central bank's monetary policy and inflation target remains credible and the Reserve Bank of India (RBI) should be able to anchor inflationary expectations. However, upside remained capped as Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,502.58 crore on Wednesday, according to exchange data. On the BSE sectoral front, traders are seen pilling up positions up in Realty, Metal, Bankex, IT and Consumer Disc, while selling is witnessed in FMCG, Oil & Gas, Basic Materials and Capital Goods.

On the global front, Asian markets are trading mostly in green on Thursday after the U.S. October consumer price index reading fueled expectations for the Fed to cuts rates again in December. The US markets ended mostly in green on Wednesday after US CPI data for October came in line with expectation. The Labor Department said its consumer price index crept up by 0.2 percent in October, matching the upticks seen in each of the three previous months as well as expectations. Back home, in the stock specific development, Godrej Industries surged after the company reported healthy Q2FY25 results.

The BSE Sensex is currently trading at 77784.79, up by 93.84 points or 0.12% after trading in a range of 77616.56 and 77945.45. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 0.70%.

The top gaining sectoral indices on the BSE were Realty up by 0.89%, Metal up by 0.51%, Bankex up by 0.50%, IT up by 0.43% and Consumer Disc up by 0.38%, while FMCG down by 0.30%, Oil & Gas down by 0.17%, Basic Materials down by 0.07% and Capital Goods down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were HCL up by 1.52%, HDFC Bank up by 0.76%, NTPC up by 0.74%, Reliance Industries up by 0.59% and Axis Bank up by 0.54%. On the flip side, Ultratech Cement down by 2.04%, Power Grid down by 1.62%, Mahindra & Mahindra down by 1.37%, Hindustan Unilever down by 1.21% and Maruti Suzuki down by 0.75% were the top losers.

Meanwhile, S&P Global Ratings has said supply capacity in India is continuing to expand pretty quickly which will help contain inflationary pressure. S&P Senior Economist Asia Pacific Vishrut Rana said the central bank's monetary policy and inflation target remains credible and the Reserve Bank of India (RBI) should be able to anchor inflationary expectations. He said 'That remains a manageable challenge.'

India's retail inflation soared to a 14-month high of 6.21 per cent in October -- above the RBI's tolerance band, mainly on account of rising food prices. It was 5.49 per cent in September. The RBI, which is mandated by the government to contain inflation at 4 per cent (+/- 2 per cent) has projected retail inflation to be 4.5 per cent in the current fiscal year.

Rana said ‘For policymakers and households to balance (consumption and sustainable growth) is to making sure that everyone spends within the means and that can increase savings.’ He said consumption is a major component for the Indian economy, with private consumption accounting for more than 55 per cent of the overall growth.

He added ‘We do see a strong consumption-driven growth outlook for economy. Overall, infrastructure is another component of growth. Urban consumption has been the key driver of growth over the past couple of years.’ Indian economy is very heavily domestically oriented, he said, adding that about 85 per cent of the Indian economy relies on domestic demand, meaning the consumer story is going to drive growth going forward.

The CNX Nifty is currently trading at 23586.55, up by 27.50 points or 0.12% after trading in a range of 23541.35 and 23645.30. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 7.11%, HCL up by 1.38%, Hindalco up by 0.88%, HDFC Bank up by 0.83% and Axis Bank up by 0.83%. On the flip side, Ultratech Cement down by 1.59%, Shriram Finance down by 1.54%, Power Grid down by 1.54%, Mahindra & Mahindra down by 1.25% and Hindustan Unilever down by 1.16% were the top losers. 

Asian markets are trading mostly in red; Hang Seng declined 168.33 points or 0.86% to 19,655.12, Jakarta Composite plunged 53.89 points or 0.74% to 7,254.78, Shanghai Composite weakened 10.91 points or 0.32% to 3,428.37, Straits Times fell 3.85 points or 0.1% to 3,716.49 and Taiwan Weighted lost 171.71 points or 0.76% to 22,688.52. However, KOSPI increased 13.05 points or 0.54% to 2,430.13 and Nikkei 225 surged 28.43 points or 0.07% to 38,750.09. 
  RELATED NEWS >>
Most Viewed >>
November 12 , 2024
Equity fund inflows surge 21% to Rs.41,887 cro
November 13 , 2024
Arbitrage funds: Tax-friendly debt alternative
November 13 , 2024
29 mutual fund NFOs raise Rs 6,078 crore in Oc
November 13 , 2024
What are banking and financial service sectora
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.