Benchmarks trade flat in morning deals

Indian equity benchmarks erased their initial gains and were trading flat in morning deals, as global recession fears receded. Traders remained cautious as Finance minister Nirmala Sitharaman said ‘some people do also speak that a falling rupee also helps exports. Whether it does or doesn’t, theoretically it may, but in today’s condition, with recession outside and demand not really as adequately as it should be, even a fall in the rupee may or may not help our exports. We are conscious about these basic facts’. Besides, foreign institutional investors (FIIs) have net sold shares worth Rs 5,101.30 crore on September 26, as per provisional data available on the NSE. Traders overlooked the Organisation for Economic Cooperation and Development (OECD) in its latest Interim Economic Outlook has retained the India’s Gross Domestic Product (GDP) growth projection at 6.9 per cent for the current financial year (FY23) despite the global economy losing momentum in wake of the Russia-Ukraine war.

On the global front, Asian markets are trading mostly in red as hardening interest rates and prospects of a global recession darkened the outlook for riskier assets. Back home, stocks related to Telecom sector remained in watch as a domestic rating agency India Ratings and Research (Ind-Ra) in its latest report has said that the draft Indian Telecommunication Bill may not help accelerate the resolution process for insolvent companies in the sector.

The BSE Sensex is currently trading at 57189.91, up by 44.69 points or 0.08% after trading in a range of 57167.85 and 57704.57. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.65%, while Small cap index was down by 0.21%.

The top gaining sectoral indices on the BSE were FMCG up by 0.74%, Telecom up by 0.61%, Oil & Gas up by 0.60%, Energy up by 0.28% and Bankex up by 0.11%, while Metal down by 1.29%, Auto down by 1.15%, Realty down by 0.82%, Industrials down by 0.73% and Capital Goods down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.48%, Power Grid Corporation up by 1.47%, Nestle up by 1.30%, ITC up by 1.14% and Bharti Airtel up by 0.87%. On the flip side, Tata Steel down by 2.00%, Maruti Suzuki down by 1.39%, Titan Company down by 0.69%, Larsen & Toubro down by 0.64% and Kotak Mahindra Bank down by 0.60% were the top losers.

Meanwhile, Chief Economic Advisor (CEA) V Anantha Nageswaran has said the Indian economy is on the path to recovery but cautioned that foreign investors may remain cautious because of geopolitical challenges. Nageswaran said all sectors of the economy such as agriculture, manufacturing and construction are doing well.
He mentioned ‘The Indian economy is showing resilience and on the path to recovery. Private demand and the services sector are doing better than expected.’ He added private capital formation is taking place, while foreign direct investment (FDI) flow is keeping steady. However, he said there are challenges, and geopolitics is messy for which foreign investors are cautious.

Further, noting that India has a well-capitalised banking sector, he said, the Insolvency and Bankruptcy Code (IBC) also played a big part in improving the health of the banking system which had high NPAs due to the financial crisis of 2008. Moreover, he said the economy is going to see good capital formation for good credit growth. Besides, he also stated ‘Inflation in India is now at seven per cent. But we are worried about this rate which shows the country is becoming less tolerant to it (inflation).’

The CNX Nifty is currently trading at 17009.50, down by 6.80 points or 0.04% after trading in a range of 17007.40 and 17176.45. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Britannia Industries up by 1.93%, Power Grid Corporation up by 1.64%, Hindustan Unilever up by 1.51%, Nestle up by 1.40% and Cipla up by 1.32%. On the flip side, Adani Ports &SEZ down by 2.80%, Hero MotoCorp down by 2.73%, Tata Steel down by 2.10%, Tata Motors down by 1.53% and Maruti Suzuki down by 1.50% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 189.29 points or 1.06% to 17,665.85, Jakarta Composite lost 34.77 points or 0.49% to 7,092.73, Straits Times trembled 18.30 points or 0.58% to 3,163.67 and KOSPI fell 13.29 points or 0.6% to 2,207.65.

On the flip side, Shanghai Composite gained 7.98 points or 0.26% to 3,059.21, Taiwan Weighted strengthened 57.97 points or 0.42% to 13,836.16 and Nikkei 225 surged 136.23 points or 0.52% to 26,567.78.