Domestic indices add more losses in late morning deals

Domestic equity indices added more losses and were trading with cut of over 0.75 percent, which dragged both the Sensex and Nifty below their psychological 73,400 and 22,300 levels respectively. Markets were trading near low points in late morning deals on account of selling by funds and retail investors. Meanwhile, the session was largely weak for broader indices with BSE Mid cap index and Small cap index falling in the range of 1.60-1.80%. Hectic selling in JSW Steel, Power Grid, NTPC, Indusind Bank and HCL companies’ stocks dragged the markets lower. Foreign fund outflows dented sentiments. Foreign Institutional Investors (FIIs) sold shares worth Rs 2,168.75 crore on May 6. Further, geopolitical tensions also weighed on markets as Israel commenced its planned military offensive in Rafah hours after it rejected Hamas's proposal for a ceasefire in Gaza. 

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight. Sentiments got boost as Japan’s service sector activity expanded in April at its fastest pace since August, according to final figures from S&P Global. The headline au Jibun Bank Japan services business activity index came in at 54.3 in April, compared to 54.1 in March, touching an eight month high. Back home, almost all the sectoral indices on BSE were trading into negative territory; however stocks from FMCG counter was the only exception. Stocks from Realty, Utilities, Metal, Basic Materials and Telecom counters were the prominent losers of the session.  

The BSE Sensex is currently trading at 73338.31, down by 558.23 points or 0.76% after trading in a range of 73330.62 and 74026.80. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.78%, while Small cap index down by 1.64%.

The only gaining sectoral index on the BSE was FMCG up by 1.88%, while Realty down by 2.63%, Utilities down by 2.50%, Metal down by 2.35%, Basic Materials down by 2.19%, Telecom down by 2.10% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.66%, Nestle up by 2.12%, ITC up by 1.65%, Kotak Mahindra Bank up by 0.38% and TCS up by 0.36%. On the flip side, JSW Steel down by 3.15%, Power Grid down by 3.08%, NTPC down by 2.33%, Indusind Bank down by 2.16% and HCL down by 1.98% were the top losers.

Meanwhile, credit ratings agency CRISIL in its latest report has said that as much as half of the country’s international air passenger traffic is expected to be catered by Indian airlines by financial year 2027-28. It said the share of Indian airlines in international passenger traffic, including originating or terminating as well as the traffic transitioning through the country, is seen surging 700 basis points to around 50 per cent by 2027-28, from 43 per cent in the previous fiscal.

According to the report, the improvement would be driven by Indian airlines deploying additional aircraft and adding new routes in the international segment, as well as their inherent advantage of superior domestic connectivity compared with foreign carriers. It noted that business profiles of Indian carriers will strengthen as a result of their rising share in international traffic, which is more profitable than the domestic segment. India’s international passenger traffic grew to around 70 million in fiscal 2024, from a low of 10 million in pandemic-hit fiscal 2021, and has surpassed the pre-pandemic level. The share of Indian airlines, which was rising steadily earlier, picked up pace since the pandemic.

The report further said a noticeable shift in spending patterns has emerged after the pandemic, as evident in the increasing inclination of Indians towards international leisure travel. Increasing disposable incomes, easing visa requirements, growing number of airports and enhanced air travel connectivity are boosting international travel. The government’s focus on making India a hub for tourism is also expected to provide a fillip to inbound traffic. Thus, international passenger traffic is likely to clock a compound annual growth rate (CAGR) of 10-11 per cent over the next four fiscals, against a mere 5 per cent CAGR in the four years prior to the pandemic. 

The CNX Nifty is currently trading at 22266.60, down by 176.10 points or 0.78% after trading in a range of 22254.75 and 22499.05. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 4.61%, Britannia up by 2.63%, Nestle up by 2.14%, ITC up by 1.73% and SBI Life up by 0.51%. On the flip side, JSW Steel down by 3.51%, Shriram Finance down by 3.48%, Power Grid down by 3.37%, Hindalco down by 3.24% and Bajaj Auto down by 2.82% were the top losers.  

Asian markets were trading mostly in green; Nikkei 225 surged 536.46 points or 1.4% to 38,772.53, Taiwan Weighted added 105.15 points or 0.51% to 20,628.46, Straits Times rose 3.34 points or 0.1% to 3,306.53, KOSPI increased 53.22 points or 1.99% to 2,729.85 and Shanghai Composite strengthened 5.72 points or 0.18% to 3,146.44. However, Jakarta Composite plunged 7.11 points or 0.1% to 7,128.78 and Hang Seng declined 97.75 points or 0.53% to 18,480.55.