Key indices end flat in rangebound trading session

Indian equity benchmarks took a breather after a record rally and ended on a flat note on Tuesday, marred by subdued sentiment and a lack of major triggers. Markets remained rangebound and in the red for most part of the day, as investors awaited crucial economic data from the US which would impact the Federal Reserve rate cut in September. Traders got anxious with Chief Economic Advisor (CEA) V Anantha Nageswaran stating that India is well-positioned for strong global economic growth, but the country must be cautious of financialization as it progresses towards becoming a developed nation by 2047. Nageswaran highlighted the risks of an oversized financial market influencing public policy and economic outcomes, a trend that he believes India should avoid. Some cautiousness came as Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve. Acharya said after the Covid-19 pandemic, rural consumption and investments have weakened.

However, downside remained capped as traders took some support after the World Bank in its latest ‘India Development Update: India’s Trade Opportunities in a Changing Global Context’ stated that the Indian economy continues to grow at a healthy pace despite challenging global conditions. According to the World Bank, the growth is forecast to reach 7 percent in FY24/25 and remain strong in FY25/26 and FY26/27. Some support also came with S&P Global Ratings’ statement that credit quality and financial profile of Indian rated companies are expected to improve further on the back of declining leverage and broad-based earnings growth. It added the absolute debt reduced more in non-infrastructure sectors. Also, S&P Global Market Intelligence said India’s outlook remains positive despite the dip in growth in the first quarter of FY25 to 6.7 percent compared to 7.8 percent in the previous quarter. The global research firm retained India’s GDP output at 6.8 percent for FY25. 

On the global front, Asian markets ended mostly down on Tuesday, while European markets were trading lower as investors awaited more U.S. economic data, including Friday's non-farm payrolls report for August to gauge the size of the Federal Reserve's rate cut later this month. Signs of sluggish demand in China and heightened tensions in the Middle East also weighed on regional markets. Back home, there was some buzz in coal industry stocks as the country's coal production rose by 6.48 per cent to 384.08 million tonne (MT) in the first five months of the ongoing fiscal. The production was 360.71 MT in April-August FY24. Stocks related to agriculture also were in limelight after the government gave the green light to seven major agricultural schemes, totaling around Rs 14,000 crore. This includes a Rs 2,817 crore Digital Agriculture Mission and a Rs 3,979 crore scheme dedicated to crop science. 

Finally, the BSE Sensex fell 4.40 points or 0.01% to 82,555.44, and the CNX Nifty was up by 1.15 points to 25,279.85.     

The BSE Sensex touched high and low of 82,675.06 and 82,400.76 respectively. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.19%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.27%, Capital Goods up by 0.62%, Industrials up by 0.51%, Bankex up by 0.51% and Consumer Disc up by 0.15%, while Utilities down by 0.77%, Oil & Gas down by 0.69%, Metal down by 0.59%, Realty down by 0.53% and TECK down by 0.51% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.45%, Bajaj Finserv up by 1.30%, Titan Company up by 0.85%, Nestle up by 0.75% and HDFC Bank up by 0.72%. On the flip side, Infosys down by 1.22%, Bajaj Finance down by 1.13%, Adani Ports & SEZ down by 0.99%, JSW Steel down by 0.97% and HCL Technologies down by 0.95% were the top losers.

Meanwhile, the Union Cabinet has approved seven big-ticket programmes for the holistic growth of agriculture and allied sectors with a total outlay of nearly Rs 14,000 crore, as it aims to improve farmers' income. The focus of these programmes would be on research & education, climate resilience, natural resource management and digitisation in the agriculture sector along with emphasis on growth of horticulture and livestock sectors. 

The Cabinet has approved crop science for food and nutritional security programmes with a total outlay Rs 3,979 crore. The six pillars have been included in the programme with a focus on preparing the farmers for climate resilient crop sciences and food security by 2047. These six pillars are -- Research and Education; Plant Genetic Resource Management; Genetic improvement for food and fodder crop; Pulse and oilseed crop improvement; Improvement of commercial crops; and Research on insects, microbes, pollinators.

The Cabinet also approved an outlay of Rs 2,291 crore for strengthening agricultural education, management and social sciences. This programme will be under Indian Council of Agricultural Research. The aim is to modernise agri-research and education in line with New Education Policy 2020. The use of latest technology like Digital DPI, Al, big data, remote, etc will be promoted and the programme includes natural farming and climate resilience. The Cabinet also approved the Digital Agriculture Mission with a total investment of Rs 2,817 crore. There are two foundation pillars in the project -- Agri Stack and Krishi Decision Support System. 

A Rs 1,702 crore scheme has also been cleared for sustainable livestock health and their production. The scheme aims to increase farmers' income from livestock and dairy. Under this scheme, the focus will be on animal health management and veterinary education; dairy production and technology development; animal genetic resource management, production and improvement; and animal nutrition and small ruminant production and development. Another major scheme cleared by the Cabinet relates to sustainable development for horticulture. With a total outlay of Rs 860 crore the measure is aimed at increasing farmers’ income from horticulture plants. The programme comprises of tropical, sub-tropical and temperate horticulture crops; root, tuber, bulbous and arid crops; vegetable, floriculture, and mushroom crops; and plantation, spices, medicinal, and aromatic plants The Union Cabinet also gave approvals to a Rs 1,202-crore scheme for strengthening of Krishi Vigyan Kendras (KVKs) and a Rs 1,115-crore scheme for Natural Resource Management.

The CNX Nifty traded in a range of 25,321.70 and 25,235.80. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 1.72%, Bajaj Finserv up by 1.40%. ICICI Bank up by 1.39%, HDFC Life Insurance up by 1.28% and Hero MotoCorp up by 1.24%. On the flip side, Bajaj Finance down by 1.36%, ONGC down by 1.33%, Infosys down by 1.20%, Adani Ports & SEZ down by 1.08% and HCL Technologies down by 1.02%. and HCL Technologies down by 1.02%.

European markets were trading lower; UK’s FTSE 100 decreased 47.59 points or 0.57% to 8,316.25, France’s CAC fell 18.4 points or 0.24% to 7,628.02 and Germany’s DAX lost 80.73 points or 0.43% to 18,850.12.

Asian markets ended mostly down on Tuesday with caution ahead of critical US economic reports, including Friday's non-farm payrolls report for August to gauge the size of the Federal Reserve's rate cut later this month. Japanese shares declined as the yen rebounded from a two-week low against the US dollar. Chinese and Hong Kong shares fell, dragged by banking and energy shares and disappointing China August manufacturing activity data. Moreover, Seoul shares dropped after data showed South Korea's headline inflation eased from 2.6% to 2% in August, marking its lowest level on a year-on-year basis since March 2021.