Key indices edge higher in morning deals

Indian equity benchmarks edged higher in morning deals ahead of the official announcement of first quarter economic growth data due later in the day. Traders took some support with private report that economic growth to be in the range of 14 per cent to 23 per cent for the first quarter of the current financial year. The growth was projected on a low base of 24.4 per cent contraction in the gross domestic product in Q4 of the previous financial year. Some support also came with another private report stating that the overall hiring activity in India has touched pre-pandemic level and going ahead consumption economy will play an important role in driving job growth further. Adding to the optimism, a private report stated that business resumption activity continued its northward journey and reached a new high, much above the pre-pandemic levels for the week ended August 29. The Nomura India Business Resumption Index rose to 102.7 for the week ending 29 August from 101.3 in the prior week.

On the global front, Asian markets were trading mostly in red despite fresh all-time highs on Wall Street, as worries about China's slowing economic growth and regulatory changes weighed on investor sentiment. National data showed China's factory activity expanded at a slower pace in August as coronavirus-related restrictions and high raw material prices pressure manufacturers in the world's second largest economy, while services activity contracted sharply.

The BSE Sensex is currently trading at 57026.83, up by 137.07 points or 0.24% after trading in a range of 56859.10 and 57124.78. There were 18 stocks advancing against 12 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 0.74%.

The top gaining sectoral indices on the BSE were Telecom up by 1.90%, Utilities up by 0.95%, Healthcare up by 0.83%, Power up by 0.72% and Metal up by 0.68%, while Auto down by 0.26%, Energy down by 0.16%, PSU down by 0.08% and Bankex down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.69%, Asian Paints up by 2.15%, Sun Pharma up by 1.35%, Bajaj Finance up by 1.33% and Tata Steel up by 1.02%. On the flip side, Indusind Bank down by 1.20%, Mahindra & Mahindra down by 0.78%, Nestle down by 0.52%, Dr. Reddy's Lab down by 0.49% and Axis Bank down by 0.48% were the top losers.

Meanwhile, Exports from special economic zones (SEZs) grew by about 41.5 per cent to reach Rs 2.15 lakh crore during the April-June quarter of the current fiscal (Q1FY22) driven by healthy growth in pharmaceuticals, engineering, and gems and jewellery sectors. SEZs are key export hubs which contribute about one-fourth of the country's total outbound shipments.

According to commerce ministry data, exports from these zones dipped to Rs 7.56 lakh crore in 2020-21 as against Rs 7.97 lakh crore in 2019-20. In the first quarter of the current financial year, SEZ exports rose about 41.5 per cent to Rs 2.15 lakh crore. As many as 427 such zones have been approved by the government, out of which 267 are operational as on June 30. The data showed that till June 30, Rs 6.25 lakh crore have been invested in these zones and a total of 24.47 lakh people are employed there.

Export Promotion Council for EoUs and SEZs (EPCES) is the nodal body, set up by the commerce ministry, to promote shipments from these zones. The council would work on taking the country's exports to USD 400 billion during the current fiscal. The major export destinations include the United Arab Emirates, US, UK, Australia and Singapore.

The CNX Nifty is currently trading at 16985.25, up by 54.20 points or 0.32% after trading in a range of 16915.85 and 16995.55. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.76%, Asian Paints up by 2.13%, Hindalco up by 1.66%, Adani Ports &SEZ up by 1.51% and Bajaj Finance up by 1.36%. On the flip side, Tata Motors down by 1.71%, Indusind Bank down by 1.27%, BPCL down by 0.81%, Hero MotoCorp down by 0.76% and Mahindra & Mahindra down by 0.62% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 365.37 points or 1.43% to 25,174.17, Taiwan Weighted dropped 128.24 points or 0.74% to 17,268.28, Straits Times trembled 43.76 points or 1.41% to 3,058.35, Shanghai Composite declined 26.61 points or 0.75% to 3,501.54 and Jakarta Composite lost 19.63 points or 0.32% to 6,125.27.

On the flip side, KOSPI rose 32.36 points or 1.03% to 3,176.55 and Nikkei 225 surged 332.80 points or 1.2% to 28,122.09.