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Markets trim opening losses; trade flat in early deals
Apr-25-2024

Indian equity benchmarks made negative start on Thursday tracking weak global cues following lower-than-expected revenue guidance by Meta. Domestic indices soon trimmed some of their losses and are trading flat with negative bias in early deals as traders were cautious ahead of monthly futures & options (F&O) expiry later in the day. Foreign fund outflows dented the sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 2,511.74 crore on April 24, provisional data from the NSE showed. However, some support came in with a private report that merger and acquisition (M&A) deal value soared by 60 per cent to $19.6 billion in January-March 2024. Traders took note of report that India and UAE trade has increased 15 per cent since the implementation of the free trade agreement in May 2022 and the two countries are on track to surpass the target of $100 billion in non-oil trade by 2030.

Most of the Asian markets are trading lower, following the mixed cues from Wall Street overnight, as traders remain cautious ahead of the report on first quarter US GDP data that could have an impact on the outlook for interest rates. The Fed is widely expected to leave interest rates unchanged at next week's US Fed monetary policy meeting, but traders will look for clues about the possibility of future rate cuts.

Back home, pharma industry stocks are in focus with the commerce ministry data showing that the country's drugs and pharmaceuticals exports increased 9.67 per cent year-on-year to $27.9 billion in 2023-24, even as the total exports dipped by 3 per cent in the last fiscal. In 2022-23, the exports stood at $25.4 billion. As per the data, pharma exports in March grew by 12.73 per cent to $2.8 billion. In stock specific development, Axis Bank leading the gainers on the indices on reporting profit of Rs 7,129 crore in Q4 as against a loss in the corresponding quarter a year ago. On the other hand, Kotak Bank leading the losers on the indices after the Reserve Bank of India (RBI) barred the private lender from issuing new credit cards. 

The BSE Sensex is currently trading at 73815.17, down by 37.77 points or 0.05% after trading in a range of 73556.15 and 73872.69. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.08%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were PSU up by 0.57%, Industrials up by 0.56%, Capital Goods up by 0.53%, Energy up by 0.27% and Utilities up by 0.19%, while Realty down by 0.94%, Consumer Durables down by 0.54%, Bankex down by 0.39%, Metal down by 0.28% and Consumer Discretionary down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.94%, HCL Technologies up by 1.25%, Sun Pharma up by 0.98%, SBI up by 0.85% and ICICI Bank up by 0.68%. On the flip side, Kotak Mahindra Bank down by 10.23%, Hindustan Unilever down by 1.52%, Titan Company down by 0.87%, Asian Paints down by 0.86% and Maruti Suzuki down by 0.79% were the top losers.

Meanwhile, expressing optimism over India and UAE trade partnership, the Comprehensive Economic Partnership Agreement (CEPA) Council Director Ahmed Aljneibi has said that the trade between two countries increased 15 per cent since the implementation of the free trade agreement in May 2022 and the both are on track to surpass the target of $100 billion in non-oil trade by 2030. The UAE-India CEPA Council (UICC) was launched on the sidelines of the Vibrant Gujarat Summit in January. The two countries implemented the CEPA in May 2022.

Aljneibi said the UAE-India trading relationship has grown rapidly since the signing of the CEPA. The UAE stands as India's second-largest export destination, third-largest trading partner, and fourth-largest investor. The bilateral trade has totalled $85 billion and the UAE's foreign direct investment into India has increased to $3.3 billion in 2023.

He stressed that UICC's mandate is to ensure that the UAE and Indian businesses, no matter their size or sectorial focus, have inclusive and open pathways to benefit from the CEPA. He added Rajasthan's highly diverse economy and strong trading ties with the UAE - which reached $450 million in 2023 - represents a natural fit for the development of mutually beneficial ties.

The CNX Nifty is currently trading at 22387.30, down by 15.10 points or 0.07% after trading in a range of 22305.25 and 22403.50. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.31%, Grasim Industries up by 1.37%, HCL Technologies up by 1.27%, Sun Pharma up by 0.96% and SBI up by 0.84%. On the flip side, Kotak Mahindra Bank down by 10.13%, Tata Consumer Products down by 2.00%, Hindustan Unilever down by 1.68%, LTIMindtree down by 1.58% and HDFC Life Insurance down by 1.14% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 765.65 points or 2.03% to 37,694.43, Taiwan Weighted lost 244.51 points or 1.23% to 19,887.23, KOSPI dropped 29.18 points or 1.1% to 2,646.57, Jakarta Composite declined 25.01 points or 0.35% to 7,149.52 and Straits Times fell 9.72 points or 0.3% to 3,283.41. On the other hand, Hang Seng rose 93.11 points or 0.54% to 17,294.38 and Shanghai Composite was up by 5.08 points or 0.17% to 3,049.90.
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