Benchmarks trade marginally lower in morning deals

Indian equity benchmarks erased initial gains and were trading marginally lower in morning deals, due to losses in Metal, Realty and Healthcare stocks. Traders turned cautious with the Ministry of Commerce & Industry’s data showing that the output of eight core industries contracted for the first time in nearly four years by 1.8 per cent in August 2024 due to decline in output of coal, crude oil, natural gas, refinery products, cement and electricity. In August 2023, the core sector’s output had grown 13.4% and in July 2024, it had grown by 6.1%. Some concern also came as data showed the foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 9792 crore on September 30. On the global front, Asian markets are trading in green as investors react to comments from Federal Reserve Chair Jerome Powell. Powell indicated inflation is cooling and interest rates may decrease further over time but there is no rush to cut rates quickly.

The BSE Sensex is currently trading at 84237.11, down by 62.67 points or 0.07% after trading in a range of 84237.11 and 84648.40. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.21%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were IT up by 0.75%, TECK up by 0.63%, Capital Goods up by 0.31%, Power up by 0.25% and Industrials up by 0.22%, while Metal down by 0.99%, Realty down by 0.79%, Healthcare down by 0.47%, Basic Materials down by 0.43% and FMCG down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.45%, Mahindra & Mahindra up by 1.41%, Infosys up by 1.19%, Bajaj Finserv up by 0.88% and Larsen & Toubro up by 0.78%. On the flip side, Asian Paints down by 2.34%, Tata Steel down by 1.63%, JSW Steel down by 1.32%, Maruti Suzuki down by 1.14% and Titan Company down by 1.06% were the top losers.

Meanwhile, ICRA in its latest report has said that revenues of Indian pharma companies are likely to expand by 9-11 per cent in the current financial year (FY25), albeit a moderation from the increase of 13-14 per cent recorded in the previous year. It stated this projected revenue will be driven by 9-11 per cent growth from the US market, 7-9 per cent each from the European and domestic markets, and 11-13 per cent from the emerging markets.

ICRA has maintained its Stable outlook for the Indian pharmaceutical industry, led by steady demand in the export and domestic markets and the comfortable credit profile of key industry participants. Kinjal Shah, Senior Vice President and Co-Group Head – Corporate Ratings, ICRA, said, ‘ICRA expects the operating margins of its sample set of companies to remain stable at 23-24 per cent in FY2025, supported by an increase in revenues, higher contribution of complex generics/ specialty molecules and soft prices of raw materials.’

It asserted growth in the previous fiscal was impacted to an extent by the change in the composition of the National List of Essential Medicines (NLEM), which resulted in a decline in realisations for certain drugs, in addition to an uneven monsoon, which affected acute therapy sales. The overall growth for pharma companies is expected to be supported by sales force expansion and improvement in productivity of medical representatives (MR), widening distribution in rural areas, and new product launches, even though the price hike granted under NLEM for 2024-25 is minimal. Moreover, it said the revenue growth from the domestic market is set to improve by 7-9% in FY25 as against 6.4% in FY24.

The CNX Nifty is currently trading at 25761.95, down by 48.90 points or 0.19% after trading in a range of 25757.75 and 25907.60. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.39%, Mahindra & Mahindra up by 1.50%, Infosys up by 1.33%, Wipro up by 1.00% and Bajaj Finserv up by 0.92%. On the flip side, Asian Paints down by 2.38%, Tata Steel down by 1.58%, Bajaj Auto down by 1.53%, JSW Steel down by 1.37% and Maruti Suzuki down by 1.34% were the top losers.

Asian markets are trading in green; Jakarta Composite gained 59.95 points or 0.79% to 7,587.88, Straits Times rose 4.43 points or 0.12% to 3,589.72, Nikkei 225 surged 747.98 points or 1.93% to 38,667.53 and Taiwan Weighted added 162.86 points or 0.73% to 22,387.40.