Bourses trade at day’s high points in late afternoon session

Indian equity markets traded at day’s high points in late afternoon session ahead of weekly F&O expiry. Among heavy-weights Reliance Industries, HCL Tech and Bajaj Finserv exhibited a smart performance. Traders took support after bank credit to NBFCs grew in double digit in FY22 with outstanding bank credit to them rising by 10.4 per cent to Rs 10.5 lakh crore on the back of improvement in overall economic activities and banks' renewed focus on the NBFC sector improvement in their balance sheets. Sector wise, airline industry remained in focused, as prices of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- has been reduced by Rs 1,563.97 per kilolitre, or 1.27 per cent, to Rs 1,21,475.74 per kl (Rs 121 per litre) in the national capital on softening international crude oil rates. Simultaneously, prices of commercial LPG - used by business establishments such as hotels and restaurants - were reduced by Rs 135 per 19-kg cylinder.

On the global front, Asian markets were trading mostly in red as traders grow increasingly worried that central bank moves to rein in inflation could tip economies into recession. European markets were trading in green led by industrial and luxury names, with gains limited by a slide in energy stocks and lingering worries over slowing economic growth.

The BSE Sensex is currently trading at 55840.74, up by 459.57 points or 0.83% after trading in a range of 55135.11 and 55842.87. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.32%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Energy up by 2.35%, Oil & Gas up by 2.12%, IT up by 1.66%, TECK up by 1.60% and Realty was up by 0.78%, while Auto down by 0.77%, Capital Goods down by 0.19% and Bankex was down by 0.14% were the few losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.63%, HCL Tech up by 2.51%, Bajaj Finserv up by 2.38%, Sun Pharma up by 2.20% and Asian Paints up by 2.06%. On the flip side, HDFC down by 1.67%, Power Grid down by 1.57%, Hindustan Unilever down by 1.07%, HDFC Bank down by 0.91% and ICICI Bank down by 0.49% were the top losers.

Meanwhile, owing to the diverging growth-inflation dynamics between advanced economies (AEs) and India, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that domestic interest rates more likely to be guided by domestic factors such as growth, pro-active supply side management by authorities and higher sensitivity of interest rate over aggregate demand owing to the external benchmark linked loans.

According to the report, structural factors such as the elevated supply of bonds by the central and state governments will keep the interest rate trajectory upwards in the short to medium term. In addition to that, abrupt changes in the geopolitical scenario and the subsequent impact on the business environment could lead to volatility in the financial system.

Ind-Ra further noted that risks to growth have increased, amid the geo-political challenges and supply-side constraints. On the other hand, inflation is likely to remain the biggest challenge for the next few months amid all the geo-political tension, and consequently Ind-Ra expects the monetary policy condition to be more focused on controlling inflation and maintaining stability in the financial system and exchange rate market.

The CNX Nifty is currently trading at 16628.45, up by 105.70 points or 0.64% after trading in a range of 16443.05 and 16638.00. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.63%, HCL Tech up by 2.74%, Bajaj Finserv up by 2.41%, Sun Pharma up by 2.26% and Infosys up by 2.16%. On the flip side, Apollo Hospital down by 4.91%, Hero MotoCorp down by 3.36%, HDFC down by 1.78%, Tata Motors down by 1.71% and Power Grid down by 1.59% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 212.81 points or 1% to 21,082.13, Taiwan Weighted dropped 122.52 points or 0.73% to 16,552.57, Nikkei 225 slipped 44.01 points or 0.16% to 27,413.88, KOSPI fell 26.91 points or 1% to 2,658.99, Straits Times trembled 18.50 points or 0.57% to 3,225.50 and Jakarta Composite was down by 0.25 points or 0% to 7,148.72. On the flip side, Shanghai Composite was up by13.30 points or 0.42% to 3,195.46.

European markets were trading in green, France’s CAC increased 66.83 points or 1.04% to 6,485.72 and Germany’s DAX was up by 120.22 points or 0.84% to 14,460.69.