HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Indian equity indices remain flat in late morning deals
Feb-05-2025

Indian equity markets remained flat in late morning deals amid mixed cues from other Asian markets. Market participants remained cautious ahead of the Reserve Bank of India's three-day monetary policy meeting, set to begin today, amid expectations of a rate cut. However, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 1.10-1.60%. Some support came as a recent report by the State Bank of India (SBI) noted that the country's retail inflation is expected to decline to 4.5% in the last quarter (January-March) of the financial year 2024-25 (FY25). There was some encouragement in markets on report that the restart of a tariff war between the United States (US) and China may have a positive impact on Indian exporters, as observed from the previous trade war during US President Donald Trump’s first term. On the sectoral front, traders were seen pilling up positions in Oil & Gas, Metal, Energy, PSU and Power, while selling was witnessed in FMCG, Realty, Consumer Durables, Auto and Consumer Disc. 

On the global front, Asian markets were trading mixed as the Chinese government announced tariffs on U.S. imports in retaliation to duties on its exports. Meanwhile, China’s Caixin Services PMI came in at 51.0 in January, compared with December’s 52.2 reading, showing a slowdown in the country’s services activity. Back home, in the stock specific development, Rail Vikas Nigam (RVNL) surged as it received Letter of Acceptance (LoA) of Rs 404 crore from East Coast Railway.

The BSE Sensex is currently trading at 78464.26, down by 119.55 points or 0.15% after trading in a range of 78328.04 and 78735.41. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.13%, while Small cap index up by 1.56%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.85%, Metal up by 1.68%, Energy up by 1.45%, PSU up by 1.40% and Power up by 1.14%, while FMCG down by 0.74%, Realty down by 0.52%, Consumer Durables down by 0.44%, Auto down by 0.09% and Consumer Disc down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.13%, Tata Motors up by 1.14%, Tata Steel up by 1.09%, Power Grid up by 0.68% and Adani Ports up by 0.38%. On the flip side, Asian Paints down by 3.65%, Titan down by 2.79%, Nestle down by 2.30%, Sun Pharma down by 1.47% and HCL Technologies down by 1.21% were the top losers.

Meanwhile, India’s services sector activity expanded at slowest pace in the month of January, as new business intakes rose at the slowest pace since November 2023, curbing the upturn in business activity. As for prices, cost burdens increased to broadly the same extent as in December, with firms largely reporting greater payroll expenses. Besides, charge inflation also ticked higher.

According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index eased to 56.5 in January from 59.3 in December. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also fell to 57.7 in January as against 59.2 in December.

The report noted that ongoing improvements in new business intakes and rising capacity pressures prompted service providers to recruit additional staff at the start of the last fiscal quarter. The rate of job creation accelerated from December and was among the fastest seen since data collection started in December 2005.

Service providers in India were confident of a rise in business activity over the course of the coming 12 months. Advertising, efforts to price competitively and new client enquiries were some of the reasons for upbeat forecasts. The level of positive sentiment did fall to a three-month low, but was broadly aligned with the series trend.

The CNX Nifty is currently trading at 23750.05, up by 10.80 points or 0.05% after trading in a range of 23713.55 and 23807.30. There were 27 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.77%, Apollo Hospital up by 2.50%, Hindalco up by 2.35%, Indusind Bank up by 2.24% and Bharat Electronics up by 2.16%. On the flip side, Asian Paints down by 3.65%, Titan down by 2.76%, Nestle down by 2.30%, Sun Pharma down by 1.41% and Britannia down by 1.12% were the top losers.

Asian markets were trading mixed; Hang Seng declined 279.71 points or 1.36% to 20,510.25, Jakarta Composite plunged 40.87 points or 0.58% to 7,032.59, Shanghai Composite weakened 27.02 points or 0.84% to 3,223.58 and Straits Times fell 12.67 points or 0.33% to 3,810.34. However, KOSPI increased 24.52 points or 0.98% to 2,506.21, Nikkei 225 surged 10.77 points or 0.03% to 38,809.14 and Taiwan Weighted added 367.62 points or 1.59% to 23,161.58. 
  RELATED NEWS >>
Most Viewed >>
January 27 , 2025
Bears continue to rule the roost
January 24 , 2025
Corporate law firms, institutional brokers hud
January 24 , 2025
Small IT flaunts strong numbers, spark for eve
January 27 , 2025
FPIs incessant selling continues; withdraw Rs
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.