Market trades sideways; auto shares drop

The key equity benchmarks traded in a narrow range during morning trade, extending losses for a fourth consecutive session. The Nifty slipped below the 25,850 mark, as uncertainty surrounding a potential U.S.-India trade agreement continued to weigh on investor risk appetite. However, the cautious sentiment may find support from a rebound in the rupee and early signs of renewed foreign investor buying.

Meanwhile, auto stocks witnessed selling pressure for the fourth consecutive trading session.

At 10:30 ST, the barometer index, the S&P BSE Sensex, shed 22.98 points or 0.03% to 84,536.67. The Nifty 50 index rose 12.65 points or 0.05% to 25,830.45.

In the broader market, the S&P BSE Mid-Cap index slipped 0.30% and the S&P BSE Small-Cap index fell 0.50%.

The market breadth was weak. On the BSE, 1,320 shares rose and 2268 shares fell. A total of 202 shares were unchanged.

Buzzing Index:

The Nifty Auto index slipped 1.51% to 27,073.35. The index fell 2.68% in four consecutive trading sessions.

Samvardhana Motherson International (down 2.93%), Hero MotoCorp (down 2.67%), Uno Minda (down 2.43%), Tata Motors Passenger Vehicles (down 2.18%), Bharat Forge (down 2.02%), TVS Motor Company (down 2.01%), Mahindra & Mahindra (down 1.88%), Bajaj Auto (down 1.74%), Eicher Motors (down 1.53%) and Exide Industries (down 1.33%) declined.

Stocks in Spotlight:

Shares of asset management companies jumped on Wednesday after the Securities and Exchange Board of India announced a cut in mutual fund expense ratios. The move was seen as a structural positive for the industry. Nippon Life India Asset Management surged 5.22%. HDFC Asset Management Company rallied 4.75%. UTI Asset Management Company gained 2.57%. Motilal Oswal Financial Services rose 3.14%. Aditya Birla Sun Life AMC advanced 2.02%, while Nuvama Wealth Management added 1.91%.

NTPC Green Energy shed 0.79%. The company announced the commissioning of an additional 37.925 MW of solar power capacity at its Khavda Solar Energy Project in Gujarat.

GE Vernova T&D India dropped 4.05%. The company said it has received a letter of award (LoA) from Power Grid Corporation of India (PGCIL) for the refurbishment of the 2x500 MW HVDC Chandrapur back-to-back link connecting the northern & southern regions of India.

Titagarh Rail Systems shed 0.12%. The company said that it has secured a Rs 273.24-crore contract from the Ministry of Railways for the supply and maintenance of Rail Borne Maintenance Vehicles (RBMV).

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