Domestic indices trim some losses in late morning deals

Domestic equity indices trimmed some losses but continued to trade in red in late morning deals as market participants indulged in reducing their positions. Meanwhile, the broader markets were also facing the heat of selling; the BSE mid-cap index declined by 1.17 per cent and the small-cap index was down 1.11 per cent. Weak cues from the global markets weighed on the domestic sentiments. Sentiments remained weak as foreign institutional investors (FIIs) sold equities worth Rs 3,560 crore on December 12. On the BSE sectoral front, all the sectoral indices on the BSE trading in red led by Realty, Metal, PSU, Basic Materials and Bankex.  Metal industry related stocks were under pressure due to a stronger US dollar and uncertainty around China’s stimulus plans.

On the global front, Asian markets were trading mostly in red following weak cues from the US markets overnight.  Back home, in the stock specific, Pennar Industries gained after it signed a joint venture agreement to manufacture and sell solar modules and cells.

The BSE Sensex is currently trading at 80503.13, down by 786.83 points or 0.97% after trading in a range of 80082.82 and 81224.08. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.17%, while Small cap index down by 1.11%.

The top losing sectoral indices on the BSE were Realty down by 2.40%, Metal down by 2.33%, PSU down by 1.41%, Basic Materials down by 1.39% and Bankex down by 1.25%, while there were no gainers.  

The few gainers on the Sensex were Bharti Airtel up by 1.42%, Hindustan Unilever up by 0.26%, Nestle up by 0.08% and Power Grid up by 0.02%. On the flip side, Tata Steel down by 3.05%, JSW Steel down by 2.93%, Indusind Bank down by 2.71%, Bajaj Finserv down by 2.20% and Axis Bank down by 2.14% were the top losers.

Meanwhile, automotive Component Manufacturers Association of India (ACMA) has said that the automotive components industry grew 11 per cent year-on-year to Rs 3.32 lakh crore in the first half of the current fiscal (H1FY25). The turnover of the automotive component industry in the April-September period of last fiscal stood at Rs 2.98 lakh crore. It said exports grew by 7 per cent to $11.1 billion (Rs 93.34 lakh crore) while imports grew by 4 per cent to $11 billion (Rs 92.05 lakh crore) with $150 million in surplus. It noted that the aftermarket, estimated at Rs 47,416 crore, also witnessed a growth of 5 per cent year-on-year. Similarly, component supplies to OEMs in the domestic market grew by 11 per cent year-on-year to Rs 2.83 lakh crore.

ACMA President Shradha Suri Marwa said with vehicle sales across all segments reaching pre-pandemic levels and despite geopolitical challenges on the exports front, the auto components sector witnessed a steady growth in both domestic and international markets in the first half of FY2024-25. She also said the festive season brought significant sales across most segments of the vehicle industry. However, she said reflecting on the past eight months of this fiscal year, while two-wheelers have shown promising growth, sales of passenger vehicles and commercial vehicles have been relatively moderate. 

On the exports front, she said with geological challenges, delivery time and freight costs have once again gone up. That said, in value terms, the industry remains in robust health, signalling stability and resilience amidst evolving market dynamics. She added that the components industry continues to make investments for purposes of higher value addition, technology upgradation and localisation to stay relevant to both domestic and international customers. 

The CNX Nifty is currently trading at 24301.35, down by 247.35 points or 1.01% after trading in a range of 24180.80 and 24520.80. There were 4 stocks advancing against 46 stocks declining on the index.

The few gainers on Nifty were Bharti Airtel up by 1.43%, Hindustan Unilever up by 0.22%, Apollo Hospital up by 0.18% and Nestle up by 0.07%. On the flip side, Shriram Finance down by 3.73%, Tata Steel down by 3.05%, JSW Steel down by 2.86%, Indusind Bank down by 2.77% and Hindalco down by 2.53% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 370.84 points or 1.82% to 20,026.21, Jakarta Composite plunged 27.09 points or 0.37% to 7,367.15, Shanghai Composite weakened 54.83 points or 1.58% to 3,406.67, Straits Times fell 0.84 points or 0.02% to 3,808.43, Nikkei 225 slipped 417.28 points or 1.05% to 39,431.86 and Taiwan Weighted lost 32.44 points or 0.14% to 23,014.36. However, KOSPI increased 10.64 points or 0.43% to 2,492.76.