Local bourses back into green territory in morning deals

Indian equity indices once again entered into green territory in morning session, on the back of buying appeared in Auto, Power and Metal stocks. Some support also came as Finance Minister Nirmala Sitharaman has exhorted large central public sector enterprises (CPSEs) to achieve 50 percent of their planned capital expenditure (capex) target for FY21 by the month of September in order to support economic growth amidst covid-19 pandemic. Market participants took a note of Commerce and Industry Minister Piyush Goyal’s statement that India will take equal and proportional measures to protect domestic manufacturing if other countries continue imposing restrictions or barriers on Indian goods. He also said that if some countries continue exporting low-quality goods or dumping products or routing exports through India's free trade agreement (FTA) partners, India would take actions. Moreover, the rupee’s recovery by 10 paise to 74.79 against the dollar in early trade added to the momentum.

On the global front, Asian markets were trading mixed, as investors remained cautious amid worries about rising U.S.-China tensions and the stalled U.S. stimulus talks. Some concern also came as data showed that the Japanese economy contracted by more than expected in the second quarter. Japan's gross domestic product or GDP plummeted an annualized 27.8 percent on year in the second quarter of 2020. That missed expectations for a decline of 27.2 percent following the 2.2 percent drop in the previous three months. Back home, on the sectoral front, banking stocks remained in focus with latest data from the RBI showing that bank credit and deposits grew 5.51 per cent and 11.11 per cent to Rs 102.65 trillion and Rs 141.61 trillion, respectively, in the fortnight ended July 31.

The BSE Sensex is currently trading at 38001.67, up by 124.33 points or 0.33% after trading in a range of 37734.14 and 38119.38. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.50%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Auto up by 2.15%, Power up by 1.50%, Metal up by 1.40%, Consumer discretionary up by 1.34% and Utilities up by 1.21%, while Energy down by 0.78%, Oil & Gas down by 0.34%, Telecom down by 0.20% and Bankex down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 3.56%, NTPC up by 3.05%, Mahindra & Mahindra up by 1.96%, Maruti Suzuki up by 1.82% and Tata Steel up by 1.63%. On the flip side, SBI down by 1.53%, Axis Bank down by 1.14%, Reliance Industries down by 1.03%, Bharti Airtel down by 0.64% and Sun Pharma down by 0.40% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its latest data has showed that Bank credit and deposits grew 5.51 per cent and 11.11 per cent to Rs 102.65 trillion and Rs 141.61 trillion, respectively, in the fortnight ended July 31. In the fortnight ended August 2, 2019, bank credit and deposits were at Rs 97.29 trillion and Rs 127.44 trillion, respectively.

It further showed that, on a year-on-year (y-o-y) basis, non-food bank credit growth was at 6.7 per cent in June 2020, nearly the same as in May 2020 but lower than the growth of 11.1 per cent in June 2019. Credit growth to agriculture and allied activities rose 2.4 per cent in June, compared with a higher growth of 8.7 per cent in the corresponding month of 2019.

Loan growth to industry grew 2.2 per cent in June 2020, compared with 6.4 per cent growth in June 2019. Credit to large industries increased 3.7 per cent, against 7.6 per cent a year ago. Credit to the services sector continued to grow at a robust, albeit decelerated rate at 10.7 per cent in June 2020 as against 13 per cent in June 2019. Personal loans continued to perform well registering a growth of 10.5 per cent in June, nearly the same as in May but lower than 16.6 per cent growth in June 2019.

The CNX Nifty is currently trading at 11224.15, up by 45.75 points or 0.41% after trading in a range of 11144.50 and 11248.90. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 4.45%, Zee Entertainment up by 3.88%, Hero MotoCorp up by 3.81%, Bajaj Auto up by 3.63% and NTPC up by 3.62%. On the flip side, SBI down by 1.48%, BPCL down by 1.31%, Grasim Industries down by 1.29%, Axis Bank down by 1.28% and Reliance Industries down by 0.89% were the top losers.

Asian markets were trading mixed; Hang Seng increased 358.53 points or 1.42% to 25,541.54, Taiwan Weighted strengthened 133.44 points or 1.04% to 12,928.90 and Shanghai Composite gained 76.20 points or 2.27% to 3,436.30. On the flip side, Straits Times trembled 2.33 points or 0.09% to 2,578.99 and Nikkei 225 slipped 144.14 points or 0.62% to 23,145.22.