Benchmarks trade flat with negative bias in morning deals

Indian equity benchmarks erased initial gains and were trading flat with negative bias in morning deals, dragged by Utilities, FMCG and Auto stocks. Traders turned cautious as provisional data showed foreign portfolio investors (FPIs) sold shares worth Rs 2,832.83 crore in the Indian equity market on May 15, 2024. However, traders took some support with the National Sample Survey Office (NSSO) report showing that the unemployment rate for people aged 15 years and above in urban areas declined to 6.7 per cent in the January-March period from 6.8 per cent a year ago. Meanwhile, a report titled 'Transformation of India's Agriculture' released by the Federation of All India Farmer Associations (FAIFA) said the number of startups in agriculture and allied sectors has risen to over 7,000 in the last nine years due to a conducive business environment and government support. It said before 2014-15, there were less than 50 startups in agriculture and allied sectors. On the global front, Asian markets are trading higher propelled by Wall Street’s surge to record highs overnight. This surge followed a US inflation report showing milder-than-expected results, fuelling expectations that the Federal Reserve may implement at least two rate cuts within the year.

The BSE Sensex is currently trading at 72980.83, down by 6.20 points or 0.01% after trading in a range of 72935.65 and 73396.75. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.71%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were TECK up by 1.08%, Telecom up by 1.05%, Realty up by 0.98%, IT up by 0.94% and Industrials up by 0.91%, while Utilities down by 0.41%, FMCG down by 0.33%, Auto down by 0.20%, Power down by 0.18% and Banking down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.06%, Infosys up by 1.41%, HCL Technologies up by 1.31%, Tech Mahindra up by 1.13% and Wipro up by 0.82%. On the flip side, Maruti Suzuki down by 2.05%, Nestle down by 1.12%, Tata Motors down by 0.92%, Power Grid Corporation down by 0.86% and Indusind Bank down by 0.78% were the top losers.

Meanwhile, the Periodic Labour Force Survey quarterly bulletin (January to March 2024) has showed that the unemployment rate in urban areas for persons aged 15 and above has decreased to 6.7 per cent during the previous quarter January to March 2024. The unemployment rate was 6.8 per cent during the corresponding period last year. It also highlighted that the female unemployment rate also decreased from 9.2 per cent in January - March last year to 8.5 per cent in January - March 2024.

It showed an increase in the Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) and decreasing Unemployment Rates (UR) in urban areas. According to the data by the Ministry of Statistics & Programme Implementation, the Labour Force Participation Rate in urban areas has also shown an increasing trend from 48.5 per cent to 50.2 per cent during January to March 2024 period in comparison to the corresponding period of last year.

In the same period, Female Labour Force Participation Rate in urban areas increased from 22.7 per cent to 25.6 per cent. The survey highlights an increasing trend in the worker population ratio for persons of age 15 years and above to 46.9 per cent from 45.2 per cent. The female worker population ratio in urban areas also rises from 20.6 per cent to 23.4 per cent during the survey period.

The CNX Nifty is currently trading at 22186.10, down by 14.45 points or 0.07% after trading in a range of 22165.15 and 22330.00. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.25%, Infosys up by 1.45%, HCL Technologies up by 1.41%, Tech Mahindra up by 1.20% and LTIMindtree up by 0.98%. On the flip side, Maruti Suzuki down by 2.06%, Shriram Finance down by 1.51%, Divi's Lab down by 1.26%, Adani Enterprises down by 1.25% and Bajaj Auto down by 1.22% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 303.08 points or 1.56% to 19,376.79, Jakarta Composite gained 66.8 points or 0.93% to 7,246.63, Shanghai Composite strengthened 15.07 points or 0.48% to 3,134.97, Straits Times rose 26 points or 0.79% to 3,315.42, KOSPI increased 22.73 points or 0.83% to 2,753.07, Nikkei 225 surged 381.26 points or 0.99% to 38,766.99 and Taiwan Weighted added 176.96 points or 0.84% to 21,324.17.