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Bears hold tight grip over Dalal Street
May-09-2024

Bears were holding a tight grip over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading near their intraday low points, impacted by selling at Capital Goods and Energy counters along with negative cues from other Asian markets as higher bond yields and looming uncertainty over the ceasefire deal in Gaza overshadowed solid trade figures from China. Sentiments got hit, after the Reserve Bank of India (RBI) in its latest data report has showed that India’s outward foreign direct investment (OFDI) commitments declined 18.29% to $2943.98 million in April 2024 as compared to $3602.95 million in April 2023. In March 2024, it stood at $3,963.94 million.

On the global front, Asian markets were trading mostly in red, even after China's exports rebounded more than expected in April on lower base of comparison. The customs office reported that exports advanced 1.5 percent on a yearly basis in April, faster than the 1.0 percent expected growth. The growth reversed March's 7.5 percent decrease. Imports posted an annual increase of 8.4 percent, which was also bigger than forecast of 5.4 percent. Back home, the steel industry stocks were in watch, as Steel Secretary Nagendra Nath Sinha said that India’s steel demand is expected to grow at a rate of 10 per cent over the next few years, supported by the government's focus on infrastructure.

The BSE Sensex is currently trading at 72800.52, down by 665.87 points or 0.91% after trading in a range of 72796.54 and 73499.49. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.87%, while Small cap index was down by 1.06%.

The only gaining sectoral indices on the BSE were Auto up by 0.85% and Consumer discretionary up by 0.04%, while Capital Goods down by 2.40%, Energy down by 2.09%, Oil & Gas down by 1.97%, Industrials down by 1.92% and Metal down by 1.89% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.34%, Mahindra & Mahindra up by 1.97%, HCL Tech. up by 1.24%, Infosys up by 0.98% and Titan up by 0.24%. On the flip side, Larsen & Toubro down by 5.26%, JSW Steel down by 2.26%, ITC down by 2.19%, Bajaj Finance down by 1.74% and Indusind Bank down by 1.72% were the top losers.

Meanwhile, Steel Secretary Nagendra Nath Sinha has said that India’s steel demand is expected to grow at a rate of 10 per cent over the next few years, supported by the government's focus on infrastructure.

The secretary said with the government's focus on infrastructure, the domestic steel demand will grow in double-digits. He said the demand has grown by 13-14 per cent year-on-year in the financial year 2023-24. It will continue to grow by 10 per cent in the future.

As per official data, the production of crude steel in the country rose 12.6 per cent to 143 million tonnes (MT) in 2023-24 over 127 MT in the previous fiscal. Domestic finished steel consumption has registered a growth of 13 per cent to 136 MT during financial year 2023-24 as against 120 MT in in the previous fiscal, supported by increased demand from automotive and infrastructure sectors.

The CNX Nifty is currently trading at 22088.00, down by 214.50 points or 0.96% after trading in a range of 22083.20 and 22307.75. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.44%, Tata Motors up by 2.26%, Mahindra & Mahindra up by 2.06%, HCL Tech. up by 1.06% and Infosys up by 0.99%. On the flip side, Larsen & Toubro down by 5.36%, Coal India down by 3.72%, Divi's Lab down by 3.16%, Britannia down by 2.86% and ITC down by 2.49% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 139.74 points or 0.68% to 20,560.77, Straits Times fell 2.94 points or 0.09% to 3,261.59, KOSPI dropped 32.91 points or 1.21% to 2,712.14 and Nikkei 225 slipped 128.39 points or 0.34% to 38,073.98, while Hang Seng advanced 208.09 points or 1.12% to 18,521.95 and Shanghai Composite strengthened 26.4 points or 0.84% to 3,154.88.
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