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Markets add more losses in late morning deals
Jan-09-2025

Domestic equity indices added more losses in late morning deals as market participants indulged in reducing their positions. Hectic selling in Larsen & Toubro, Tata Steel, Tata Motors, HDFC Bank and Ultratech Cement companies’ stocks dragged both the Sensex and Nifty below their psychological 77,800 and 23,600 levels respectively. Traders were cautious as the 10-year U.S. Treasury yield rose to its highest since April after the latest Federal Reserve meeting minutes indicated greater concern over inflation. The yield on the benchmark 10-year Treasury was last nearly one basis point lower at 4.677%, after earlier topping 4.7% to reach its highest level since late April. On the BSE sectoral front, traders were seen pilling up positions only in FMCG and Basic Materials, while selling was witnessed in Oil & Gas, Energy, PSU, Metal and Realty.

On the global front, Asian markets were trading mostly in red as investors fretted the Federal Reserve could delay policy easing due to inflation worries, while China’s entrenched consumer disinflation further dented sentiment. Back home, in the stock specific development, ACME Solar Holdings gained after the company commissioned an aggregate capacity of 1,023.05 MW of solar power projects in Rajasthan. 

The BSE Sensex is currently trading at 77758.40, down by 390.09 points or 0.50% after trading in a range of 77668.72 and 78206.21. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.23%, while Small cap index down by 0.32%.

The only gaining sectoral indices on the BSE were FMCG up by 1.65% and Basic Materials up by 0.08%, while Oil & Gas down by 1.34%, Energy down by 1.10%, PSU down by 1.03%, Metal down by 0.97% and Realty down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.49%, ITC up by 1.80%, Kotak Mahindra Bank up by 1.66%, Nestle up by 1.48% and Mahindra & Mahindra up by 0.92%. On the flip side, Larsen & Toubro down by 2.13%, Tata Steel down by 1.58%, Tata Motors down by 1.54%, HDFC Bank down by 1.43% and Ultratech Cement down by 1.40% were the top losers.

Meanwhile, rating agency CRISIL in its latest report has said that healthy farm incomes should provide support to rural incomes next fiscal (FY26) and lower inflation and scope for reduced interest rates should improve purchasing power for discretionary spending in India. This fiscal (FY25), real private consumption growth revived to 7.3 per cent from 4 per cent last fiscal. This fiscal, growth in government consumption expenditure rebounded to 4.1 per cent from 2.5 per cent last fiscal, supporting private consumption growth recovery.

The report said over the past few fiscals, government revenue spending on welfare schemes, such as NREGA, rural roads and housing construction, generated employment and bolstered rural demand in the immediate term. It said in FY26, for private consumption to remain strong, government spending must focus on employment generating schemes that put incomes in the hands of those with a higher propensity to consume.

According to the report, a combination of such spending on asset-creating schemes (rural roads, affordable housing and National Rural Employment Guarantee Act works) and furthering government capital expenditure or capex on infrastructure (railways, highways and ports) could moderate the inflation impact of such spending. It noted that if the supporting factors kick in, the pick-up in private consumption growth could be preserved next fiscal.

The CNX Nifty is currently trading at 23560.10, down by 128.85 points or 0.54% after trading in a range of 23537.95 and 23689.50. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.52%, Britannia up by 2.04%, ITC up by 1.66%, Kotak Mahindra Bank up by 1.55% and Bajaj Auto up by 1.55%. On the flip side, ONGC down by 2.21%, Larsen & Toubro down by 2.16%, Tata Steel down by 1.68%, HDFC Bank down by 1.51% and Coal India down by 1.50% were the top losers.

Asian markets were trading mostly in red; Shanghai Composite weakened 7.34 points or 0.23% to 3,222.83, Straits Times fell 17.41 points or 0.45% to 3,869.57, Nikkei 225 slipped 456.89 points or 1.16% to 39,524.17 and Taiwan Weighted lost 260.13 points or 1.12% to 23,147.20. However, Hang Seng advanced 6.81 points or 0.04% to 19,286.65, Jakarta Composite gained 3.02 points or 0.04% to 7,083.37 and KOSPI increased 2.81 points or 0.11% to 2,523.86. 
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