Benchmarks extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, dragged down by Utilities, Telecom and Realty stocks despite positive signals from global markets. Traders overlooked India Ratings and Research’s report in which it has revised upward the country’s Gross Domestic Product (GDP) growth estimate for FY25 to 7.1 per cent from 6.5 per cent earlier. In a statement, it said strong support from the sustained government capex, deleveraged balance sheets of corporate and banking sector, and the incipient private corporate capex cycle make it revise its estimate. Meanwhile, Finance Minister Nirmala Sitharaman said that the government has adopted ‘a pro-poor approach’ while implementing Goods and Services Tax, and despite lower taxes rates the revenues as a percentage of GDP have reached the pre-GST level. She said without GST, states' revenue from subsumed taxes from FY 2018-19 to 2023-24 would have been Rs 37.5 lakh crore. With GST, states' actual revenue amounted to Rs 46.56 lakh crore. On the global front, Asian markets are trading mostly in green amid optimism that the U.S. Federal Reserve may start cutting interest rates later this year. 

The BSE Sensex is currently trading at 73586.46, down by 309.08 points or 0.42% after trading in a range of 73552.61 and 74026.80. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.65%, while Small cap index was down by 0.62%.

The few gaining sectoral indices on the BSE were FMCG up by 2.10% and Capital Goods up by 0.04%, while Utilities down by 1.19%, Telecom down by 1.03%, Realty down by 1.02%, Bankex down by 0.88% and Basic Materials down by 0.88% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.39%, Nestle up by 2.27%, ITC up by 2.06%, Sun Pharma up by 0.46% and Asian Paints up by 0.42%. On the flip side, HCL Technologies down by 2.18%, Power Grid Corporation down by 2.17%, ICICI Bank down by 1.58%, JSW Steel down by 1.53% and Axis Bank down by 1.21% were the top losers.

Meanwhile, the Indian Construction Equipment Manufacturers' Association (ICEMA) in its latest report has said that India's construction equipment industry witnessed a 26 per cent rise in sales to 1,35,650 units in the 2023-24 fiscal (FY24) on the back of the government's infrastructure-led growth agenda. The construction equipment (CE) industry had sold 1,07,779 units in the previous fiscal year.

It further said the government's infra-led growth agenda and pre-election impetus on projects in the pipeline triggered positive growth in all five major construction equipment segments. It stated the industry's excellent annual performance has been a result of significant increase in demand for construction equipment observed in both domestic as well as exports markets, by 24 per cent and 49 per cent, respectively.

Besides, it said the total sales of earthmoving equipment -- the largest equipment segment of the CE industry -- increased to 93,531 units in FY24, which is 21 per higher than 77,164 units sold in FY23, accounting for approximately 70 per cent of the total construction equipment sales in FY24.

The CNX Nifty is currently trading at 22339.20, down by 103.50 points or 0.46% after trading in a range of 22338.20 and 22499.05. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 4.33%, Nestle up by 2.43%, Britannia Industries up by 2.34%, ITC up by 2.06% and Tata Consumer Product up by 0.70%. On the flip side, HCL Tech. down by 2.37%, Power Grid Corporation down by 2.18%, JSW Steel down by 1.72%, ICICI Bank down by 1.51% and Shriram Finance down by 1.46% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 498.96 points or 1.3% to 38,735.03, Taiwan Weighted added 86.76 points or 0.42% to 20,610.07, Straits Times rose 2.75 points or 0.08% to 3,305.94 and KOSPI increased 54.76 points or 2.05% to 2,731.39.

On the flip side, Jakarta Composite plunged 4.29 points or 0.06% to 7,131.60, Shanghai Composite weakened 4.1 points or 0.13% to 3,136.62 and Hang Seng declined 157.92 points or 0.86% to 18,420.38.