Barometers trade near flat line, Nifty below 17,900 level, FMCG shares slip

The domestic equity barometers traded near the flat line with minor cuts in mid-morning trade. The Nifty traded below the 17,900 level after hitting the day's high of 17,976.35 in morning trade. IT, PSU bank and metal stocks edged higher. On the other hand, FMCG, auto and healthcare shares declined.

At 11:29 IST, the barometer index, the S&P BSE Sensex, was down 21.83 points or 0.04% to 60,093.65. The Nifty 50 index shed 20.35 points or 0.11% to 17,893.80.

In the broader market, the S&P BSE Mid-Cap index fell 0.23% while the S&P BSE Small-Cap index gained 0.30%.

The market breadth was positive. On the BSE, 1,899 shares rose and 1,355 shares fell. A total of 166 shares were unchanged.

Investors looked ahead to the U.S. consumer price index report due on Thursday for more clues on the rate-hike trajectory. Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession.

US Federal Reserve Chairman Jerome Powell on Tuesday emphasized the need for the central bank to be free of political influence while it tackles high inflation. Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.

Buzzing Index:

The Nifty FMCG index shed 0.67% to 44,326.40. The index declined 1.05% in two trading sessions.

Varun Beverages (down 2.88%), Marico (down 1.47%), Godrej Consumer Products (down 1.39%), Hindustan Unilever (down 1.34%), Colgate-Palmolive (India) (down 0.77%), Nestle India (down 0.7%), Radico Khaitan (down 0.65%), Dabur India (down 0.53%), Tata Consumer Products (down 0.51%) and ITC (down 0.07%) slipped.

On the other hand, Emami (up 0.34%) ,United Spirits (up 0.28%) and Britannia Industries (up 0.24%) edged higher.

Stocks in Spotlight:

RITES fell 2.29%. The company said that it has signed a memorandum of understanding (MoU) with Indian Institute of Technology Kanpur (IIT-Kanpur) to strengthen and develop a sustainable future by "Transforming to Green".

PC Jeweller added 0.12%. The company said that during the quarter ended 31 December 2022, the company has recorded domestic turnover of Rs 829.10 crore, registering a growth of more than 38% on YoY basis. The company's domestic turnover in the corresponding quarter of the previous year was Rs 600.18 crore. It further informed that the company had also opened a new franchisee showroom at Katihar (Bihar) during the quarter.

Dr. Lal PathLabs declined 1.28%. The healthcare service provider said that CARE Ratings has assigned "CARE AA rating with 'stable' outlook to the long-term bank facilities of the company worth Rs 229 crore.

Global Markets:

Asian stocks advanced on Wednesday as investors looked ahead to the U.S. consumer price index, which would set the Federal Reserve's trajectory in its attempt to tackle inflation.

US stocks ended firmly higher on Tuesday on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy.

Fed Chairman Jerome Powell on Tuesday stressed the need for the central bank to be free of political influence while it tackles persistently high inflation. In a speech delivered to Sweden's Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be unpopular politically.

Meanwhile, the World Bank slashed its growth forecasts for most countries and regions and warned that new adverse shocks could tip the global economy into a recession. Global gross domestic product will probably increase 1.7% this year, about half the pace forecast in June, the Washington-based lender said Tuesday. The bank, which also cut its growth estimates for 2024, said persistent inflation and higher interest rates are among the key reasons. It also cited the impact of Russia's invasion of Ukraine, and a decline in investment.

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