Domestic indices trade deeply in red in late morning deals

Domestic indices were trading deeply in red with cut of over one percent in late morning deals as market participants indulged in reducing their positions. Hectic selling in Tech Mahindra, Bajaj Finserv, Ultratech Cement, ICICI Bank and Sun Pharma companies’ stocks dragged the markets to trade near low points of day. Unabated foreign fund outflows dented investor sentiments.  As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 4,445.59 crore on November 06.  All the sectoral indices on the BSE were trading in red led by Metal, Auto, IT, Utilities and Basic Materials.

On the global front, Asian markets were trading mostly higher following positive cues from the US markets overnight. Sentiments got boost as China’s exports grew 12.7% year on year in October, sharply beating street estimates of a 5.2% rise, according to the country’s customs agency. In the stock specific development, Rail Vikas Nigam (RVNL) surged after the company has secured a letter of acceptance (LoA) for an order worth over Rs 180 crore from East Central Railway.

The BSE Sensex is currently trading at 79471.05, down by 907.08 points or 1.13% after trading in a range of 79419.34 and 80563.42. There was 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.41%, while Small cap index up by 0.01%.

The top losing sectoral indices on the BSE were Metal down by 1.73%, Auto down by 1.34%, IT down by 1.28%, Utilities down by 1.18% and Basic Materials down by 1.18%, while there were no gainers indices.  

The only gainer on the Sensex was Tata Steel up by 1.01%. On the flip side, Tech Mahindra down by 2.58%, Bajaj Finserv down by 2.26%, Ultratech Cement down by 1.96%, ICICI Bank down by 1.83% and Sun Pharma down by 1.82% were the top losers.

Meanwhile, Federation of Automobile Dealers' Association (FADA) has said that the total vehicle retail sales in India witnessed a 32 per cent on-year rise in October 2024 to 28,32,944 units with all segments including two-wheelers and passenger vehicles registering strong growth. It said the total vehicle retail sales in October 2023 stood at 21,43,929 units. The strong growth in October this year was largely driven by the rural market, especially boosting two-wheeler and passenger vehicles sales, supported by increased Minimum Support Price (MSP) for Rabi crops.

According to FADA, passenger vehicle sales grew 32.38 per cent to 4,83,159 units in October 2024, from 3,64,991 units retailed in October 2023. Two-wheeler sales for the previous month were recorded at 20,65,095 units, as compared to 15,14,634 units in October 2023, registering a growth of 36.35 per cent, while three-wheeler sales were up 11.45 per cent year-on-year to 1,22,846 in in October 2024. Tractor sales increased 3.08 per cent during October 2024 to 64,433 units, from 62,542 units a year ago.  

FADA stated that the convergence of major festivals (Navratri and Diwali) in October significantly boosted consumer demand; attractive festive offers, new model launches, and improved stock availability led to a 36 per cent year-on-year and 71 per cent month-on-month growth in two-wheelers. Besides, rural sentiments, favourable monsoon and good crop expectations, further contributed to the growth. Moreover, the 32 per cent year-on-year and 75 per cent month-on-month rise in passenger vehicle sales was driven by festive demand, aggressive offers, and new model introductions. FADA remains optimistic about near-term growth of the overall automobile industry particularly with the wedding season ahead. However, potential challenges such as inventory overstock and economic headwinds may affect sales momentum towards the end of the year.

The CNX Nifty is currently trading at 24205.80, down by 278.25 points or 1.14% after trading in a range of 24181.95 and 24503.35. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 6.30%, Tata Steel up by 1.01%, Trent up by 0.46%, Coal India up by 0.28% and HDFC Life Insurance up by 0.01%. On the flip side, Hindalco down by 8.14%, Shriram Finance down by 2.80%, Adani Enterprises down by 2.74%, Grasim Industries down by 2.72% and Tech Mahindra down by 2.70% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 234.77 points or 1.13% to 20,773.15, Shanghai Composite strengthened 40.7 points or 1.19% to 3,424.51, Straits Times rose 71.36 points or 1.94% to 3,674.35, KOSPI increased 3.79 points or 0.15% to 2,567.30 and Taiwan Weighted added 197.44 points or 0.84% to 23,414.82. However, Jakarta Composite plunged 92.88 points or 1.27% to 7,290.99 and Nikkei 225 slipped 139.14 points or 0.35% to 39,341.53.