Sensex, Nifty wipe out opening gains to trade flat in early deals

Indian equity benchmarks made flat-to-positive start on Wednesday tracking overnight gains on Wall Street and fall in crude oil prices after three successive days of strong gains, consolidating ahead of supply data. Sensex and Nifty soon wiped out their opening gains and are trading flat with negative bias in early deals as investors remained on sidelines ahead of economic data from Indian and US. However, downside remained capped amid foreign fund inflows. Foreign institutional investors (FIIs) purchased shares worth Rs 1,503.76 crore on August 27. Traders took note of Indian Ambassador to Oman Amit Narang stating that discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early. He said the pact will give a significant push to bilateral trade and investment ties between the two countries. 

On the global front, Asian markets are trading mostly lower as traders remain cautious and await the release of key US inflation report later in the week, which could impact expectations for how quickly the US Fed will cuts interest rates. On the economic front, the value of total construction work done in Australia was up a seasonally adjusted 0.1 percent on quarter in the second quarter of 2024. Back home, Coal sector stocks are in focus with report that the country's coal production rose by 7.12 per cent to 370.67 million tonne from April to August 25. Coal production was 346.02 MT in the year-ago period. In stock specific development, Orient Technologies is set to debut on the Mainboard.

The BSE Sensex is currently trading at 81700.96, down by 10.80 points or 0.01% after trading in a range of 81578.32 and 81840.57. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.04%, while Small cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were Telecom up by 0.44%, Oil & Gas up by 0.32%, Energy up by 0.26%, PSU up by 0.26% and Industrials up by 0.26%, while Realty down by 0.57%, Bankex down by 0.20%, Basic Materials down by 0.16%, FMCG down by 0.14% and Utilities down by 0.11% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.09%, Indusind Bank up by 0.97%, Titan Company up by 0.60%, Tata Motors up by 0.46% and Sun Pharma up by 0.45%. On the flip side, Bajaj Finserv down by 0.73%, Tata Steel down by 0.58%, JSW Steel down by 0.56%, ICICI Bank down by 0.50% and TCS down by 0.50% were the top losers.

Meanwhile, expressing optimism over India’s growth story, Moody's said over the last ten years, the government has escalated its capital spending on infrastructure from Rs 1.97 trillion (1.6 per cent of GDP) in FY2014-15 to Rs 11.1 trillion (3.4 per cent of GDP) in FY2024-25. This leap reflects a broader strategy to enhance physical and digital infrastructure, supporting an average annual Gross Domestic Product (GDP) growth rate of 6 per cent and encouraging private sector participation through public-private partnerships (PPPs). The increase in government capital expenditure and private sector investments has catalysed India's infrastructure overhaul. India's infrastructure development has seen unprecedented progress over the past decade, driven by substantial capital spending from both government and private sectors. This transformation spans physical infrastructure, such as railways, roads, airports, and digital advancements, positioning India as a leader among emerging markets.

Recent developments have not only bolstered connectivity and logistics but also significantly improved the country's ranking on the World Bank's Logistics Performance Index (LPI), which has risen from 54 out of 160 countries a decade ago to 38 out of 139 countries. The infrastructure component of the LPI has similarly improved, moving from 58 to 47 in the same period. The government's continued focus on infrastructure development is evidenced by the Rs 11.1 trillion capital expenditure allocated for FY2024-25, a 16.9 per cent increase from the previous fiscal year. This investment is expected to drive further improvements in logistics, connectivity, and overall economic growth.

India's physical infrastructure has expanded dramatically. The country now boasts the second-largest road network globally, trailing only the United States. Airport passenger handling capacity has surged, with India recently surpassing Brazil and Indonesia to become the third-largest domestic aviation market, following China and the US. This growth is largely attributed to the government's Ude Desh ka Aam Naagrik (UDAN) scheme, which has enhanced regional aviation connectivity. Despite these achievements, per capita travel and consumption statistics remain lower compared to many emerging market peers. However, India's infrastructure density, including road and railway network lengths per 1,000 kilometres, surpasses that of countries like China.

The CNX Nifty is currently trading at 25009.70, down by 8.05 points or 0.03% after trading in a range of 24964.65 and 25048.15. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were LTIMindtree up by 3.52%, BPCL up by 1.53%, Indusind Bank up by 1.21%, Mahindra & Mahindra up by 1.05% and Titan Company up by 0.46%. On the flip side, Hero MotoCorp down by 1.15%, ONGC down by 0.78%, Divi's Lab down by 0.68%, Tata Steel down by 0.65% and Adani Enterprises down by 0.61% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 173.74 points or 0.97% to 17,700.93, Nikkei 225 slipped 25.43 points or 0.07% to 38,263.19, KOSPI dropped 15.74 points or 0.59% to 2,673.51, Straits Times fell 7.39 points or 0.22% to 3,391.08 and Shanghai Composite weakened 6.25 points or 0.22% to 2,842.48. On the other hand, Taiwan Weighted surged 117.45 points or 0.53% to 22,302.45 and Jakarta Composite was up by 25.51 points or 0.34% to 7,623.39.