Key gauges continue to trade in green in morning deals

Indian equity benchmarks continued to trade in green in morning deals ahead of the monthly expiry of July futures and option contracts amid positive cues from other Asian markets. Sentiments remained positive as Securities and Exchange Board of India’s (SEBI) Chairman, Ajay Tyagi asserted that a large part of the non-banking financial intermediation is happening through the capital markets. Going forward, the capital markets are going to play a bigger role in funding the economic growth. Traders overlooked Parliamentary panel report stated that the stimulus package announced by the government for the revival of the pandemic-hit economy has been found to be ''inadequate'. Besides, appreciation in Indian rupee against the dollar too aided sentiments. Indian rupee strengthened 11 paise to 74.27 against the dollar on increased selling of the US currency by banks and exporters. On the global front, Asian markets were trading in green, as the US Federal Reserve signalled it was in no rush to taper stimulus, though the mood was fragile as investors waited to see if Beijing could stem the recent bloodletting in Chinese shares.

The BSE Sensex is currently trading at 52639.05, up by 195.34 points or 0.37% after trading in a range of 52561.39 and 52708.72. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.27%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Metal up by 2.59%, Basic Materials up by 1.37%, Energy up by 1.06%, IT up by 0.77% and TECK up by 0.63%, while Power down by 0.44%, FMCG down by 0.26%, Healthcare down by 0.03%, Telecom down by 0.03% and Utilities down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.26%, HCL Tech. up by 1.56%, Reliance Industries up by 1.48%, Titan Company up by 1.20% and Tech Mahindra up by 1.12%. On the flip side, Power Grid Corporation down by 26.13%, Maruti Suzuki down by 2.24%, Bajaj Auto down by 0.69%, HDFC down by 0.68% and NTPC down by 0.51% were the top losers.

Meanwhile, Chief Economic Adviser (CEA) K V Subramanian has said that India is expected to hit a growth rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in the subsequent years on the back of reforms undertaken by the government. He also said the government is expected to meet the fiscal deficit target of 6.8 per cent in the current fiscal despite pressure on revenue collections.

CEA said ‘Our projection is that from FY'23, we should be hitting a growth of 6.5-7 per cent... accelerating from there onwards hitting between 7.5 and 8 per cent as the impact of all these reforms is felt both on the investment rate, which will start touching 40 per cent, and the incremental capital output ratio, basically productivity, which will also improve.’

Subramanian further said the supply-side reforms undertaken by the government in sectors such as agriculture, labour, export PLI scheme, change in MSME definition, creation of the bad bank and privatisation of public sector banks, among others, are going to push growth in the future. Besides, he said, linking of reforms to additional funding by the Centre to States would encourage them to undertake reforms that will push growth.

The CNX Nifty is currently trading at 15770.45, up by 61.05 points or 0.39% after trading in a range of 15737.80 and 15785.90. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.74%, Tata Motors up by 3.50%, Tata Steel up by 3.43%, JSW Steel up by 3.13% and HCL Tech. up by 1.54%. On the flip side, Power Grid Corporation down by 26.13%, Maruti Suzuki down by 2.32%, Cipla down by 1.02%, HDFC down by 0.74% and Coal India down by 0.66% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 187.01 points or 0.68% to 27,768.67, KOSPI rose 0.55 points or 0.02% to 3,237.41, Straits Times advanced 15.55 points or 0.49% to 3,157.30, Shanghai Composite gained 34.97 points or 1.04% to 3,396.56, Jakarta Composite soared 16.13 points or 0.26% to 6,104.65, Taiwan Weighted strengthened 194.06 points or 1.13% to 17,329.28 and Hang Seng increased 698.43 points or 2.74% to 26,172.31.