Benchmarks trade flat; FMCG shares decline

The key equity barometers managed to pare most losses and traded near the flat line, with some negative bias, in morning trade. The Nifty traded above the 17,900 mark. FMCG shares witnessed significant selling pressure.

At 10:27 IST, the barometer index, the S&P BSE Sensex, was down 31.18 points or 0.05% to 61,001.08. The Nifty 50 index lost 6 points or 0.03% to 17,923.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.31% while the S&P BSE Small-Cap index added 0.30%

The market breadth remained positive. On the BSE, 1,678 shares rose and 1,421 shares fell. A total of 161 shares were unchanged.

Investor sentiment took a hit after stronger-than-expected U.S. inflation readings ramped up fears of more hawkish moves from the Federal Reserve. The U.S. consumer price index data for January showed that inflation remained resilient despite a slew of interest rate hikes by the Fed. Regional central banks are also expected to raise rates to keep up with the Fed, further tightening the liquidity conditions.

Buzzing Index:

The Nifty FMCG index fell 1.03% to 45,503.95. The index had advanced 1.03% to end at 45,976.95 yesterday.

Emami (down 1.53%), ITC (down 1.46%), Radico Khaitan (down 1.24%), Britannia Industries (down 1.24%) and Hindustan Unilever (down 1.22%) were the top losers.

Among the other losers were Nestle India (down 0.64%), Varun Beverages (down 0.51%), Marico (down 0.5%), Tata Consumer Products (down 0.1%) and Dabur India (down 0.08%).

On the other hand, United Spirits Ltd (up 0.59%) ,Colgate-Palmolive (India) Ltd (up 0.22%) and Procter & Gamble Hygiene and Health Care Ltd (up 0.1%) moved up.

Stocks in Spotlight:

LT Foods rose 1.91%. The Competition Commission of India approved the acquisition of certain equity share capital of LT Foods Ltd. by Riyadh-based SALIC International Investment Corp.

Reliance Industries advanced 1.63%. The Ahmedabad bench of NCLT approved the resolution plan jointly submitted by Reliance Industries and Assets Care & Reconstruction Enterprise for Sintex Industries.

Biocon fell 1.02%. The company has entered into an agreement with Kotak Strategic Situations Fund for a structured funding up to Rs 1,200 crore.

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