Markets continue to trade in red in late morning deals

Domestic equity markets continued to trade in red in late morning deals on account selling by funds and retail investors. Selling in Asian Paints, Hindustan Unilever, Tata Steel, Maruti Suzuki and Indusind Bank companies’ stocks weighed on the markets. Sentiments were weak as the HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 56.5 last month from 57.5 in August - the weakest since January - and slightly below a preliminary estimate of 56.7. Growth in India's manufacturing industry cooled to an eight-month low in September as solid demand and output eased slightly. Besides, foreign fund outflows also dented domestic sentiments. On September 30, 2024, Foreign Institutional Investors (FIIs) sold shares worth Rs 9,791.93 crore. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK, Consumer Durables, Bankex and Industrials, while selling was witnessed in Metal, Realty, FMCG, Oil & Gas and Healthcare.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets overnight. Back home, shares of gold finance companies such as Muthoot Finance and Manappuram Finance were trading in the red as the Reserve Bank of India (RBI) said it has observed several irregular practices by gold loan businesses. The RBI observed incorrect application of risk weights, weakness in monitoring of loan-to-value (LTV) ratio, and lack of transparency during auction of gold ornaments and jewellery on default by the customer, among others while lending loans.  Thus, the Central Bank has directed banks and non-banking financial companies (NBFCs), offering gold loans, to thoroughly review their policies and identify gaps.

The BSE Sensex is currently trading at 84133.17, down by 166.61 points or 0.20% after trading in a range of 84098.94 and 84648.40. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.12%, while Small cap index up by 0.43%.

The top gaining sectoral indices on the BSE were IT up by 0.30%, TECK up by 0.25%, Consumer Durables up by 0.22%, Bankex up by 0.15% and Industrials up by 0.09%, while Metal down by 0.70%, Realty down by 0.68%, FMCG down by 0.58%, Oil & Gas down by 0.50% and Healthcare down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.81%, Mahindra & Mahindra up by 1.27%, SBI up by 0.96%, Bajaj Finance up by 0.84% and Bajaj Finserv up by 0.67%. On the flip side, Asian Paints down by 2.17%, Hindustan Unilever down by 1.80%, Tata Steel down by 1.63%, Maruti Suzuki down by 1.44% and Indusind Bank down by 1.24% were the top losers.

Meanwhile, the Ministry of Commerce & Industry in its latest data has showed 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 per cent and in July 2024, it had grown by 6.1 per cent. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Coal production having 10.33 per cent weight declined by 8.1 per cent in August, 2024 over August, 2023, while its cumulative index increased by 6.5 per cent during April to August, 2024-25 over corresponding period of the previous year. Electricity generation having 19.85 per cent weight declined by 5.0 per cent in August, 2024 over August, 2023, while its cumulative index increased by 6.8 per cent during April to August, 2024-25 over corresponding period of the previous year. Cement production having 5.37 per cent weight declined by 3.0 per cent in August, 2024 over August, 2023, while its cumulative index increased by 0.7 per cent during April to August, 2024-25 over corresponding period of the previous year. 

Petroleum Refinery production having 28.04 per cent weight declined by 1.0 per cent in August, 2024 over August, 2023, while its cumulative index increased by 1.7 per cent during April to August, 2024-25 over corresponding period of the previous year. Natural Gas production having 6.88 per cent weight declined by 3.6 per cent in August, 2024 over August, 2023, while its cumulative index increased by 2.6 per cent during April to August, 2024-25 over corresponding period of the previous year. Crude Oil production having 8.98 per cent weight declined by 3.4 per cent in August, 2024 over August, 202 and its cumulative index declined by 1.7 per cent during April to August, 2024-25 over corresponding period of the previous year.

However, steel production having 17.92 per cent weight increased by 4.5 per cent in August, 2024 over August, 2023 and its cumulative index increased by 7.3 per cent during April to August, 2024-25 over corresponding period of the previous year. Fertilizer production having 2.63 per cent weight increased by 3.2 per cent in August, 2024 over August, 2023 and its cumulative index increased by 1.7 per cent during April to August, 2024-25 over corresponding period of the previous year.

The CNX Nifty is currently trading at 25756.90, down by 53.95 points or 0.21% after trading in a range of 25739.20 and 25907.60. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.72%, Mahindra & Mahindra up by 1.43%, Wipro up by 1.08%, SBI up by 0.94% and Bajaj Finance up by 0.85%. On the flip side, Asian Paints down by 2.15%, Bajaj Auto down by 1.77%, Hindustan Unilever down by 1.76%, Tata Steel down by 1.68% and Maruti Suzuki down by 1.49% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 53.82 points or 0.71% to 7,581.75, Nikkei 225 surged 717.37 points or 1.89% to 38,636.92 and Taiwan Weighted added 141.57 points or 0.64% to 22,366.11. However, Straits Times fell 1.31 points or 0.04% to 3,583.98.