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Benchmarks continue to trade lower in morning deals
Jan-08-2025

Indian equity benchmarks continued to trade lower in morning deals, impacted by a sharp decline in Consumer Durables, IT and Industrials stocks amid weak global market trends. Unabated foreign fund outflows also weighted on sentiments. Foreign institutional investors (FIIs) remained net sellers, offloading equities worth Rs 1,491.46 crore on January 7. The total FII outflow for 2024 has now crossed Rs 3,06,000 crore. Some concern also came as the State Bank of India (SBI) has revised its forecast for India's GDP growth in FY25 to 6.3 per cent, slightly lower than the National Statistical Office's (NSO) estimate of 6.4 per cent. SBI noted a ‘downward bias’ in its projection, citing several challenges affecting economic growth. According to the SBI report, the slowdown in manufacturing and credit growth, coupled with the impact of a high base effect, has dampened expectations for FY25. Additionally, the First Advance Estimates (FAE) for GDP reflect a broader deceleration in aggregate demand during the fiscal year. On the global front, Asian markets are trading mostly in red as sentiment was knocked by a sell-off on Wall Street that was sparked by data indicating the US economy and jobs market remained robust, further denting hopes for interest rate cuts.

The BSE Sensex is currently trading at 77810.73, down by 388.38 points or 0.50% after trading in a range of 77751.30 and 78319.45. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.29%, while Small cap index was down by 1.20%.

The few gaining sectoral indices on the BSE were Energy up by 1.14% and Oil & Gas up by 1.07%, while Consumer Durables down by 2.97%, IT down by 1.37%, Industrials down by 1.32%, Consumer Discretionary down by 1.24% and Capital Goods down by 1.11% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.12%, Asian Paints up by 0.35%, Axis Bank up by 0.29%, Maruti Suzuki up by 0.21% and Bajaj Finserv up by 0.15%. On the flip side, Zomato down by 2.99%, Titan Company down by 2.03%, Infosys down by 1.72%, Adani Ports &SEZ down by 1.70% and Tech Mahindra down by 1.62% were the top losers.

Meanwhile, the Federation of Automobile Dealers Association (FADA) has said that retail automobile sales in India grew 9.1 per cent in 2024 to 2.61 crore units, defying multiple headwinds like extreme weather, elections, and uneven monsoons. It stated segment-wise, two-wheeler sales grew 10.7 per cent, three-wheelers 10.4 per cent, passenger vehicles 5.1 per cent and tractor 2.5 per cent segments posted growth, while commercial vehicles remained nearly flat at 0.07 per cent.

Three-wheelers, passenger vehicles and tractor segments reached new all-time highs; two-wheelers almost breached its 2018 peak and commercial vehicles have yet to surpass its 2018 level. Further, it said challenges for internal combustion engine two-wheelers included finance constraints and rising competition from electric vehicles. Commercial vehicles struggled with election-driven uncertainty and low infra-spend; passenger vehicle growth was led to margin pressures from higher inventory and discounts.

In December, the last month of 2024, overall retail automobile sales however declined by 12.4 per cent, with two-wheelers (-17.6 per cent), three-wheelers (-4.5 per cent), PV (-1.9 per cent) and CV (-5.2 per cent) facing de-growth. Only tractor showed a 25.7 per cent yearly jump in sales in December. In the near term, FADA asserted that about 48 per cent of automobile dealers expect growth in January, 41.22 per cent see flat sales and 10.69 per cent predict a slowdown.

The CNX Nifty is currently trading at 23,558.25, down by 149.65 points or 0.63% after trading in a range of 23,557.35 and 23,751.85. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Dr Reddy’s up by 1.83%, Reliance Industries up by 1.55%, ONGC up by 1.33%, BPCL up by 0.64% and Maruti Suzuki up by 0.40%, while Shriram Finance down by 2.48%, Trent down by 2.43%, Bharat Electronics down by 2.04%, Adani Ports and SEZ down by 2.02% and Titan Company down by 1.98%.

Asian markets are trading mostly in red; Nikkei 225 slipped 113.49 points or 0.28% to 39,969.81, Taiwan Weighted lost 204.06 points or 0.86% to 23,447.21, Hang Seng declined 309.7 points or 1.62% to 19,137.88, Jakarta Composite plunged 3.13 points or 0.04% to 7,080.15 and Shanghai Composite weakened 47.16 points or 1.48% to 3,182.48.

On the flip side, KOSPI increased 28.00 points or 1.12% to 2,520.10 and Straits Times rose 24.48 points or 0.64% to 3,852.65.
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