Domestic indices trade below neutral lines in late morning deals

Domestic equity markets remained below neutral lines and were trading with marginal cut in late morning deals amid mixed cues from other Asian markets. Sentiments were subdued owing to investor anxiety about the U.S. and Chinese economic outlook. Selling in Nestle, Bajaj Finance, Bajaj Finserv, HCL and Larsen & Toubro companies’ stocks dragged the markets below neutral lines. Traders overlooked report that NITI Aayog CEO B.V.R. Subrahmanyam said the Free Trade Agreement (FTA) being negotiated between India and the UK is in the final stages with both sides within finger-touching distance to clinch an agreement. The FTA is aimed at significantly enhancing the estimated GBP 38.1 billion a year bilateral trading partnership. On the BSE sectoral front, traders were seen pilling up positions in Consumer Durables, Healthcare, Oil & Gas, Telecom and Basic Materials, while selling was witnessed in Capital Goods, Realty, Utilities, Power and Auto. 

On the global front, Asian markets were trading mixed following negative cues from the US markets overnight. In the stock specific developments, PNB Housing Finance rose after it announced that the company’s board will meet to approve the issuance of NCDs to raise funds worth Rs 2,500 crore through NCDs. Century Textiles and Industries rallied after it has issued a corporate guarantee valued at Rs. 400 crores in favour of Hindalco Industries.

The BSE Sensex is currently trading at 82252.60, down by 100.04 points or 0.12% after trading in a range of 82190.72 and 82617.49. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.57%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.96%, Healthcare up by 0.94%, Oil & Gas up by 0.55%, Telecom up by 0.50%, Basic Materials up by 0.47%, while Capital Goods down by 0.62%, Realty down by 0.60%, Utilities down by 0.46%, Power down by 0.38%, Auto down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 3.10%, ITC up by 0.73%, Tata Steel up by 0.46%, Ultratech Cement up by 0.44% and SBI up by 0.28%. On the flip side, Nestle down by 1.27%, Bajaj Finance down by 1.06%, Bajaj Finserv down by 1.04%, HCL down by 0.80% and Larsen & Toubro down by 0.75% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) Founder Ajay Srivastava has said that the World Bank's suggestion for India to reconsider joining RCEP (Regional Comprehensive Economic Partnership) is based on flawed assumptions and outdated projections. He said for developing countries like India, policy decisions must be rooted in real-world data and a thorough understanding of the long-term implications. 

GTRI Founder said India pulled out of the RCEP in 2019 after entering negotiations in 2013. The RCEP bloc comprises 10 Asean group members (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Singapore, Thailand, the Philippines, Laos and Vietnam) and their six FTA partners – India, China, Japan, South Korea, Australia and New Zealand. He said that the World Bank should focus on thorough, data-based analysis that considers the specific challenges and economic conditions of developing countries before offering solutions based solely on economic models, which should be just one factor.

Srivastava has pointed out that the World Bank's latest India Development Update: India's Trade Opportunities in a Changing Global Context suggested that India could reconsider its regional integration options including its position on RCEP. However, he said this suggestion overlooks critical factors and could have significant implications for India's economic strategy and self-reliance goals. He added that India's decision not to join the RCEP was strategically sound and the core concerns that led India to opt out of RCEP in 2019 remain valid and have only been reinforced by subsequent developments. India already has several functional Free Trade Agreements (FTAs) with 13 out of 15 RCEP members, except New Zealand and China.

The CNX Nifty is currently trading at 25173.65, down by 25.05 points or 0.10% after trading in a range of 25151.55 and 25275.45. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Titan up by 3.25%, BPCL up by 1.32%, Apollo Hospital up by 1.06%, LTIMindtree up by 0.98% and Divi's Lab up by 0.85%. On the flip side, Britannia down by 1.20%, Bajaj Finserv down by 1.13%, Nestle down by 1.13%, Bajaj Finance down by 1.06% and HCL down by 0.82% were the top losers.

Asian markets were trading mixed; Hang Seng declined 89.13 points or 0.51% to 17,368.21, Shanghai Composite weakened 2.36 points or 0.08% to 2,781.92, KOSPI dropped 5.03 points or 0.2% to 2,575.77 and Nikkei 225 slipped 412.93 points or 1.13% to 36,634.68. However, Taiwan Weighted added 100.63 points or 0.47% to 21,193.38, Jakarta Composite gained 24.38 points or 0.32% to 7,697.28 and Straits Times rose 0.33 points or 0.01% to 3,441.71.