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Benchmarks remain in red in morning deals
May-08-2024

Indian equity benchmarks remained in red in morning deals, weighed down by losses in Consumer Durables, Banking and IT counters. Uncertainty around election outcome and high volatility also kept investors on the sidelines. Traders overlooked Chief Economic Adviser in the Ministry of Rural Development Kuntal Sensarma’s statement that robust capital expenditure by the government and improvement in business confidence will push the country's economic growth in 2024-25. He said that the focus areas in 2024-25 should be infrastructure growth, inclusive development and harnessing demographic dividend, among others. Meanwhile, the Ministry of Statistics and Programme Implementation (MoSPI) it its National Account Statistics 2024 has said that net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23. The net household savings peaked at Rs 23.29 lakh crore in 2020-21. These have been on the decline since then. On the global front, Asian markets are trading mostly in red as U.S. rate concerns lingered and an escalation of the military operation in Rafah fueled uncertainty about a ceasefire in Gaza. The United States has played down the deadly Israeli assault on Rafah and said it would push for the ceasefire deal.

The BSE Sensex is currently trading at 73138.72, down by 373.13 points or 0.51% after trading in a range of 73134.97 and 73418.14. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.28%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were PSU up by 1.49%, Oil & Gas up by 1.32%, Energy up by 1.19%, Metal up by 1.09% and Utilities up by 0.58%, while Consumer Durables down by 0.69%, Bankex down by 0.67%, IT down by 0.45%, TECK down by 0.34% and Capital Goods down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.13%, NTPC up by 1.10%, SBI up by 0.74%, JSW Steel up by 0.66% and Tata Motors up by 0.56%. On the flip side, Asian Paints down by 2.21%, Hindustan Unilever down by 1.88%, HDFC Bank down by 1.34%, ICICI Bank down by 1.23% and Larsen & Toubro down by 1.18% were the top losers.

Meanwhile, the Ministry of Statistics and Programme Implementation (MoSPI) it its National Account Statistics 2024 has said that net household savings declined sharply by Rs 9 lakh crore to Rs 14.16 lakh crore in three years to 2022-23. The net household savings peaked at Rs 23.29 lakh crore in 2020-21. These have been on the decline since then. The net household savings declined to Rs 17.12 lakh crore in 2021-22 and dipped further to a five-year low of Rs 14.16 lakh crore in 2022-23. The previous low of net household savings was Rs 13.05 lakh crore in 2017-18 which increased to Rs 14.92 lakh crore in 2018-19 and Rs 15.49 lakh crore in 2019-20.

Further, it stated that the investment in mutual funds almost trebled to Rs 1.79 lakh crore in 2022-23 in three years from Rs 64,084 crore in 2020-21. It was Rs 1.6 lakh crore in 2021-22. The household investment in shares and debentures almost doubled to Rs 2.06 lakh crore in 2022-23 from Rs 1.07 lakh crore in three years from 2020-21. It was Rs 2.14 lakh crore in 2021-22.

Bank advances (loans) to households have also doubled in three years to Rs 11.88 lakh crore in 2022-23 from Rs 6.05 lakh crore in 2020-21. It was Rs 7.69 lakh crore in 2021-22. Loans to households by financial corporations and non-banking financial corporations increased also fourfold to Rs 3.33 lakh crore in 2022-23 from Rs 93,723 crore in 2020-21. It was 1.92 lakh crore in 2021-22.

The CNX Nifty is currently trading at 22224.30, down by 78.20 points or 0.35% after trading in a range of 22185.60 and 22291.80. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.98%, BPCL up by 1.89%, Tata Steel up by 1.25%, NTPC up by 1.13% and Adani Enterprises up by 1.07%. On the flip side, Dr. Reddy's Lab down by 3.06%, Asian Paints down by 2.05%, Hindustan Unilever down by 2.03%, HDFC Bank down by 1.29% and ICICI Bank down by 1.21% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 628.45 points or 1.62% to 38,206.65, Hang Seng declined 69.17 points or 0.38% to 18,410.20, Straits Times fell 30.48 points or 0.92% to 3,269.56, Jakarta Composite plunged 24.87 points or 0.35% to 7,098.74 and Shanghai Composite weakened 12.99 points or 0.41% to 3,134.75.

On the flip side, Taiwan Weighted added 11.46 points or 0.06% to 20,664.99 and KOSPI increased 4.90 points or 0.18% to 2,739.26. 

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