Key gauges trim gains in morning deals

Indian equity indices trimmed gains but continued to trade in green terrain in morning deals led by gains in IT, TECK and Oil & Gas stocks amid positive global cues. Traders took a note of Icra Ratings’ report that despite the massive windfall gains from fuel taxes and GST collections, the Centre continues to borrow heavily from the market, with the total drawdown crossing 90 per cent of the notified amount so far or 46 per cent of the total borrowings for FY22, even though the second quarter is only halfway. However, gains remain capped as traders got anxious with RBI Governor Shaktikanta Das’ statement  that the resurgence in inflation in May and June above the upper threshold has reignited the debate on the appropriate monetary policy response. Some concern also came as RBI data showed India's foreign exchange reserves decreased by $2.099 billion to stand at $619.365 billion for the week ended August 13 due to a fall in core currency assets and gold.

On the global front, Asian markets were trading mostly in green as a wave of bargain hunting swept beaten-down markets and China reported no new locally acquired COVID-19 cases for the first time since July, though the mood remained brittle overall. Back home, on the sectoral front, Fertiliser industry’s stocks remained in focus as rating agency ICRA said primary fertiliser sales volume during first four months of FY22 registered 11 per cent decline compared to 4M FY21, mainly due to the base effect as during H1 FY21 fertiliser sales witnessed an upsurge owing to panic buying by farmers following Covid-19 pandemic led lockdown.

The BSE Sensex is currently trading at 55493.37, up by 164.05 points or 0.30% after trading in a range of 55493.37 and 55781.17. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.62%, while Small cap index was down by 1.39%.

The top gaining sectoral indices on the BSE were IT up by 1.35%, TECK up by 1.21%, Oil & Gas up by 0.43%, Energy up by 0.13% and Bankex up by 0.07%, while Basic Materials down by 1.38%, Consumer Durables down by 1.02%, Metal down by 0.92%, Industrials down by 0.78% and Utilities down by 0.72% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 3.51%, Tech Mahindra up by 2.70%, TCS up by 2.20%, Bajaj Finance up by 2.20% and Bajaj Finserv up by 1.72%. On the flip side, Power Grid Corporation down by 1.48%, Ultratech Cement down by 1.28%, Mahindra & Mahindra down by 0.72%, Hindustan Unilever down by 0.58% and Dr. Reddy's Lab down by 0.53% were the top losers.

Meanwhile, investment through participatory notes (P-notes) in the domestic capital market rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months. This also marks the fourth consecutive monthly growth.

According to SEBI data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- rose to Rs 1,01,798 crore at July-end from Rs 92,261 crore as of June 30, 2021. Prior to that, the investment level was at Rs 89,743 crore at May-end, Rs 88,447 crore at April-end, and Rs 89,100 crore as of March 31, 2021. Of the total Rs 1,01,798 crore invested through the route till July, Rs 93,150 crore was invested in equities, Rs 8,290 crore in debt, and Rs 358 crore in hybrid securities.

The month of July 2021 saw the highest level of investment since March 2018, when fund inflow through such a route stood at Rs 1,06,403 crore, and experts said the trend indicated growing confidence of overseas investors into domestic markets. The assets under the custody of FPIs have increased to Rs 48.36 lakh crore at July-end from Rs 48 lakh crore at the end of June.

The CNX Nifty is currently trading at 16480.25, up by 29.75 points or 0.18% after trading in a range of 16479.80 and 16592.50. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 3.38%, Tech Mahindra up by 2.64%, Bajaj Finance up by 2.09%, TCS up by 2.03% and Wipro up by 1.81%. On the flip side, Adani Ports &SEZ down by 2.17%, Tata Consumer Product down by 1.76%, Power Grid Corporation down by 1.68%, Ultratech Cement down by 1.50% and JSW Steel down by 1.46% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 1.81 points or 25169.45% to 449.99, Nikkei 225 surged 1.91 points or 27193.1% to 516.91, Shanghai Composite gained 1.00 points or 3436.8% to 34.40, KOSPI rose 1.56 points or 3086.81% to 47.77, Taiwan Weighted strengthened 2.62 points or 16459.13% to 428.95 and Jakarta Composite soared 0.93 points or 6037.7% to 56.07.

On the flip side, Straits Times trembled 0.01 points or 3116.31% to 0.29.