Indices flat in early trade; SENSEX trades above 81,700; Godrej Consumer shares tank 10% on weak commentary

The benchmark indices were also subdued due to weak global cues. 

At 9:29 AM, the S&P BSE SENSEX was trading at 81,694.92 levels, down 14 points, or 0.02%, while the NSE's NIFTY50 index was trading at 24,676.05, down 1.75 points, or 0.01%.

Among sectoral indices, FMCG stocks were the biggest drags in the early trade on the BSE. The BSE Fast Moving Consumer Goods index was trading at 20,847.73, down 323 points, or 1.53%.

Among constituents, Godrej Consumer Products (GCPL) tanked 10% to ₹1112.05 on the BSE after its weak mid-quarter business update. 

The company said that the demand conditions in India have been subdued for the past few months, which is evident in FMCG market growth.

Further, GCPL added that the weather conditions have not been supportive (delayed winters in the North and cyclones in South India) to the Home Insecticides (HI) segment, contributing ~1/3rd to its standalone business.

This has impacted HI category growths in the current quarter.

It also said that the current inflationary environment has created pressure on the margins.

Other FMCG stocks, too, slid. Last seen, HUL shares were down 3.8%, while Dabur shares were trading 2.55% lower at ₹510.20 apiece on the BSE.

Top gainers & losers on NIFTY50

Broader Market

The BSE MidCap index was trading at 47,785.08 levels, up 115 points, or 0.24%, while the BSE SmallCap index was trading at 57,225.60, up 175 points, or 0.31%.

Global Markets

Asian shares struggled with a slide in South Korea on Monday ahead of a packed week of central bank meetings that should see borrowing costs take a step lower, while US inflation data are the last hurdle to further policy easing there.

Chinese figures out on Monday showed the consumer price index fell a surprisingly large 0.6% in November, pulling annual inflation down to just 0.2% and underlining the need for more drastic policy stimulus.

Political tumult in France and South Korea was joined by the fall of Syrian President Bashar al-Assad's regime, which complicated an already fraught situation in the Middle East.

MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2%. South Korean stocks fell 1.4% even as authorities pledged all-out efforts to stabilise financial markets amid uncertainty over the fate of President Yoon Suk Yeol. 

The dollar added 0.5% on the won to 1,430.87, nearing last week's peak of 1,443.40.

Japan's Nikkei firmed 0.3%, helped by an upward revision to economic growth, while Chinese blue chips wavered either side of flat.