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Domestic indices trim losses in late morning deals
Apr-19-2024

Domestic equity markets trimmed some of their losses but continued to trade in red in late morning deals as conflict reignited between Israel and Iran. Israel conducted strike against Iran. A private report stated that explosions were heard near the airport at the Iran’s central Isfahan city. Weak cues from the other Asian markets and rising crude oil prices also dampened the domestic sentiments. Traders overlooked report that the International Monetary Fund has applauded India for maintaining fiscal discipline in an election year, saying that the Indian economy is doing well and continues to be the world's bright spot. Krishna Srinivasan, Director, Asia and Pacific Department, at the IMF said ‘At this point in time, India's economy is doing well. Growth at 6.8 per cent is very good. Inflation's coming down. We have to make sure that inflation comes down to target and it is there on a durable basis. Macro fundamentals look pretty good.’

On the global front, Asian markets were trading deeply in red after a private report stated that Israel has carried out a strike inside Iran, a move that threatens to push the region deeper into conflict. Back home, all the sectoral indices on the BSE were trading in red led by Realty, Utilities, Power, Auto and IT. Oil and marketing companies (OMCs) were trading lower as tensions flared up in Iran-Israel. IOC, BPCL, HPCL were trading lower.    

The BSE Sensex is currently trading at 72184.54, down by 304.45 points or 0.42% after trading in a range of 71816.46 and 72216.97. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.22%, while Small cap index down by 0.81%.

The top losing sectoral indices on the BSE were Realty down by 1.38%, Utilities down by 1.36%, Power down by 1.31%, Auto down by 1.23%, IT down by 1.08%, while there were no gainers.  

The top gainers on the Sensex were ITC up by 1.17%, HDFC Bank up by 0.74%, Mahindra & Mahindra up by 0.73%, Bharti Airtel up by 0.40% and ICICI Bank up by 0.38%. On the flip side, Axis Bank down by 2.27%, Tata Motors down by 2.14%, NTPC down by 1.65%, Larsen & Toubro down by 1.60% and HCL down by 1.43% were the top losers.

Meanwhile, India's Economic Affairs Secretary Ajay Seth to World Bank has said that despite a challenging global scenario, India's economy has shown robust growth over the past year backed by sustained consumption and investment demand. He said the gross domestic product (GDP) growth estimate for the fiscal 2023-24, which has been revised upwards from 7.3 per cent to 7.6 per cent in the second advance estimates, highlights the enduring strength and resilience of the Indian economy. India grew above 8 per cent for three consecutive quarters of FY24, reaffirming its position as a standout performer amidst sluggish global growth trends. 

He said that similar sentiments have been echoed by various agencies who have revised India's FY24 growth estimate closer to 8 per cent. India's proactive stance on reform and investment in sustainable growth avenues sets a benchmark for emerging economies. He also said that India's thrust on capex continued to crowd in private investment resulting in enhanced Gross Fixed Capital Formation (GFCF) at constant prices registering a growth above 10 per cent in FY24.

He further said India's inflation outlook appears positive with headline and core inflation trending downwards, indicating a broad-based moderation in price pressures. He said that on the external front, the narrowing merchandise trade deficit and the rising net services receipts are expected to improve the current account balance in fiscal 2024. Observing that the manufacturing sector registered double-digit growth in Q3 of FY24, driven by a surge in investment, improved investor confidence, and strong domestic demand conditions, he said the year also saw continued strong growth in services, led by non-contact-intensive services sectors.  

The CNX Nifty is currently trading at 21889.30, down by 106.55 points or 0.48% after trading in a range of 21777.65 and 21902.80. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 1.36%, ITC up by 1.04%, HDFC Bank up by 0.68%, Mahindra & Mahindra up by 0.68% and Apollo Hospital up by 0.53%. On the flip side, Bajaj Auto down by 3.18%, Axis Bank down by 2.23%, Tata Motors down by 2.21%, BPCL down by 1.87% and Larsen & Toubro down by 1.72% were the top losers.

All Asian markets were trading lower; Hang Seng declined 230.17 points or 1.4% to 16,155.70, Nikkei 225 slipped 940.51 points or 2.47% to 37,139.19, Taiwan Weighted lost 738.64 points or 3.78% to 19,562.56, Straits Times fell 12.29 points or 0.39% to 3,175.37, KOSPI dropped 44.00 points or 1.67% to 2,590.70, Shanghai Composite weakened 11.1 points or 0.36% to 3,063.12 and Jakarta Composite plunged 103.71 points or 1.47% to 7,063.10. 
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