Domestic indices trade lower with cut of over quarter percent

Indian equity markets traded in red with cut of over quarter a percent in late morning deals amid mixed cues from other Asian markets. Selling in TCS, Mahindra & Mahindra, ICICI Bank, Indusind Bank and HDFC Bank companies’ stocks dragged the markets lower. Foreign fund outflows dented domestic sentiments. On October 10, Foreign Institutional Investors (FIIs) sold shares worth Rs 4,926.61 crore. Further, rising crude oil prices amid worries about escalating tensions in the Middle East also weighed on the sentiments. At least 22 people were killed and almost 120 got wounded as Israeli air strikes hit two residential blocks in heart of Beirut. On the BSE sectoral front, traders were seen pilling up positions in Metal, Healthcare and Basic Materials, while selling was witnessed in Realty, Bankex, Utilities, Auto and Power. 

On the global Font, Asian markets were trading mixed following weak cues from the US markets overnight. Back home, in the stock specific development, Ashoka Buildcon rose after the company was declared as the lowest bidder (L-1) for the construction of flyover arm1 arm-2 at T Junction on Sion Panvel Highway, Mumbai.  

The BSE Sensex is currently trading at 81358.43, down by 252.98 points or 0.31% after trading in a range of 81352.27 and 81671.38. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.04%, while Small cap index up by 0.12%.

The top gaining sectoral indices on the BSE were Metal up by 1.40%, Healthcare up by 0.43%, Basic Materials up by 0.32%, Oil & Gas up by 0.28% and IT up by 0.25%, while Realty down by 0.77%, Bankex down by 0.74%, Utilities down by 0.63%, Auto down by 0.52% and Power down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.41%, Tech Mahindra up by 1.22%, HCL up by 1.15%, JSW Steel up by 1.11% and Infosys up by 0.88%. On the flip side, TCS down by 2.33%, Mahindra & Mahindra down by 1.48%, ICICI Bank down by 1.43%, Indusind Bank down by 0.95% and HDFC Bank down by 0.91% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that the overall air cargo volumes are likely to witness healthy growth of around 9-11% YoY to around 3.6-3.7 million tonnes in FY25, supported by 11%-13% expansion in international and 4%-6% growth in domestic cargo. The international cargo volumes have seen a muted YoY rise of 1% in H1 FY24 on the back of the slowdown in the global economy and geo-political conflicts. However, the international cargo volumes have seen a healthy expansion of 18% in H2 FY24, amid the Red Sea crisis, which started in October 2023. Consequently, the seaborne cargo traffic was impacted, which in turn benefitted international air cargo traffic. 

Vinay Kumar G, Vice President & Sector Head - Corporate Ratings, ICRA, said the cargo volumes were relatively less impacted due to Covid in FY21, compared to passenger traffic. Moreover, the recovery was relatively swifter with cargo volumes recovering to 95% of pre-Covid levels in FY22 compared to 55% in passenger traffic. This was supported by higher growth in international cargo on account of the export of Covid-related vaccines and higher merchandise exports in FY22. While the growth in cargo volumes has slowed down during the FY23-H1 FY24 period, it has bounced back handsomely in the last 12 months, since the start of the Red Sea crisis. The international cargo volumes have increased by 18% YoY and 20% YoY during 5M FY25 and are expected to increase by a further 11%-13% YoY to touch new highs in FY25.

Talking on the airport operators’ performance, he said ICRA’s outlook on airport infrastructure is Stable with revenues of ICRA’s sample set likely to grow by around 12-14% YoY in FY25, supported by the sustained improvement in both domestic and international passenger traffic, increase in tariffs at some of the major airports and ramp-up in non-aeronautical revenues. With healthy profitability margins, the debt coverage metrics are expected to remain comfortable with DSCR and interest cover above 2 times and 4 times respectively in the medium term, despite higher interest outgo with the commercialisation of the capex programme at some of the key airports. The credit profile of airport operators is projected to remain strong, supported by healthy accruals and comfortable liquidity.

The CNX Nifty is currently trading at 24929.85, down by 68.60 points or 0.27% after trading in a range of 24927.65 and 25028.65. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.27%, Tata Steel up by 1.41%, Tech Mahindra up by 1.30%, HCL up by 1.24% and JSW Steel up by 1.15%. On the flip side, TCS down by 2.30%, Adani Enterprises down by 1.53%, Mahindra & Mahindra down by 1.51%, Cipla down by 1.44% and ICICI Bank down by 1.43% were the top losers.

Asian markets were trading mixed; Jakarta Composite gained 44.34 points or 0.59% to 7,524.42, Nikkei 225 surged 228.73 points or 0.58% to 39,609.62 and Taiwan Weighted added 243.06 points or 1.06% to 22,902.14. However, Shanghai Composite weakened 43.53 points or 1.34% to 3,258.40, Straits Times fell 5.29 points or 0.15% to 3,580.00 and KOSPI dropped 3.43 points or 0.13% to 2,595.73.