Benchmarks continues to trade in sideways; FMCG shares slides for 3rd day

The headline equity benchmarks continued to trade sideways in the morning trade, following a rally in the previous trading day. The three-day RBI Monetary Policy Committee (MPC) meeting also begins today, with market participants anticipating a potential rate cut, which could influence investor sentiment. The Nifty traded above the 23,750 mark. FMCG shares extended losses for the three consecutive trading sessions.

At 10:30 ST, the barometer index, the S&P BSE Sensex, shed 49.73 points or 0.06% to 78,533.76. The Nifty 50 index rose 34.80 points or 0.15% to 23,774.05.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.11% and the S&P BSE Small-Cap index added 1.41%.

The market breadth was strong. On the BSE, 2,534 shares rose and 973 shares fell. A total of 202 shares were unchanged.

Economy:

In January, the seasonally adjusted HSBC India Services PMI Business Activity Index stood at 56.5, indicating a sharp rate of expansion in business activity compared to the previous month. However, the headline figure declined from 59.3 in December to its lowest level since November 2022. This drop suggests a slowdown in the pace of growth within the sector.

India's private sector economy lost some growth momentum in January, as a quicker increase in factory production was more than offset by a softer expansion in service activity. The HSBC India Composite Output Index dropped from 59.2 in December to a 14-month low of 57.7. Despite the decline, the latest figure remained above the long-run series average, indicating that the economy is still experiencing a robust upturn.

Pranjul Bhandari, Chief India Economist at HSBC, commented, "Indias services sector lost growth momentum in January, although the PMI remained well above the 50-breakeven level. The business activity and new business PMI indices eased to their lowest levels since November 2022 and November 2023, respectively. That said, new export business partly countered the downtrend and continued to rebound from a dip in late-2024, in line with official data which showed Indias services exports shining in December and capturing a larger share of global trade."

Result Today:

Abbott India (up 0.75%), Arvind Fashions (up 1.04%), Avalon Technologies (down 0.42%), CCL Products (up 0.25%), CMS Info Systems (up 0.73%), Cummins India (up 2.83%), Eveready Industries India (up 3.54%), Gallantt Ispat (up 0.93%), Gujarat Gas (up 1.82%), Innova Captab (down 0.16%), Jagran Prakashan (up 2.26%), Kansai Nerolac Paints (down 1.21%), Medi Assist Healthcare Services (up 0.73%), Info Edge (India) (up 1.92%), Navneet Education (up 1.39%), Page Industries (up 0.68%), Reliance Power (up 1.20%), Skipper (up 1.17%), Sula Vineyards (up 2.39%), Swiggy (down 3.38%), Symphony (down 2.28%), Tega Industries (up 2.91%), Thangamayil Jewellery (up 4.20%), VRL Logistics (up 2.69%), Welspun Corp (up 1.12%), Zydus Lifesciences (up 0.49%) will announce their quarterly earnings later today.

Buzzing Index:

The Nifty FMCG index lost 1.01% to 56,697.35. The index fell 1.27% in past three consecutive trading sessions.

Nestle India (down 3.1%), Marico (down 2.14%), Tata Consumer Products (down 2.07%), United Spirits (down 2.01%) and United Breweries (down 2%), Britannia Industries (down 1.52%), Hindustan Unilever (down 1.06%), Radico Khaitan (down 0.84%), Dabur India (down 0.66%) and ITC (down 0.58%) declined.

On the other hand, ITC Hotels (up 1.48%), Procter & Gamble Hygiene and Health Care (up 0.6%), and Colgate-Palmolive (India) (up 0.01%) added.

Stocks in Spotlight:

JTL Industries added 2.55% to Rs 100.53 after the company said that it has received an order order to supply 3,000 metric tons of galvanized iron (GI) pipes of assorted sizes from the Public Health Engineering (PHE) Department, Jammu, under JJM.

Tilaknagar Industries consolidated net profit advanced 23.21% to Rs 53.93 crore in Q3 FY25, compared to Rs 43.77 crore in Q3 FY24. Revenue from operations (excluding excise duty) declined 9.63% year on year to Rs 340.43 crore in the quarter ended 31 December 2024.

Lemon Tree Hotels advanced 4.10% to Rs 153.50 after the companys consolidated net profit surged 76.53% to Rs 62.49 crore on 22.4% increase in revenue from operations to Rs 355.18 crore in Q3 FY25 over Q3 FY24.

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