Markets make gap-up opening; trade in fine-fettle in early deals

Indian equity benchmarks extended their previous two sessions' Bull Run with gap-up opening on Monday mirroring firm global cues. Markets are trading in fine-fettle in early deals on account of buying in all the sector indices. Sentiments got a boost as Commerce and Industry Minister Piyush Goyal said India is one of the fastest-growing economies in the world and it is expected to reach $30 trillion in the coming 30 years. He said if India grows at 8 per cent every year on a compounded annual growth basis, the economy will double in about nine years. Adding more optimism, a private report that India is rapidly emerging as a preferred country for foreign investments as the steps taken by the government led by Prime Minister Narendra Modi during the last eight years have borne fruit as is evident from the ever-increasing volumes of FDI inflow setting new records. Meanwhile, the government has extended the time for levy of GST compensation cess by nearly 4 years till March 31, 2026.

On the global front, most of the Asian markets are trading higher following the broadly positive cues from global markets on Friday, with energy, technology and financial stocks leading the way higher. Traders also continued to pick up stocks at relatively reduced levels following recent weakness amid concerns about a recession as major central banks move ahead with aggressive rate hikes to tame surging inflation.

Back home, Ministry of Statistics and Programme Implementation said as many as 423 infrastructure projects, each entailing an investment of Rs 150 crore or more, have been hit by cost overruns of more than Rs 4.95 lakh crore. In stock specific development, Hindustan Copper gained as its board will meet on June 30 to consider a proposal to raise up to Rs 500 crore via debentures.

The BSE Sensex is currently trading at 53429.93, up by 701.95 points or 1.33% after trading in a range of 53283.00 and 53509.50. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.96%, while Small cap index was up by 1.57%.

The top gaining sectoral indices on the BSE were IT up by 2.58%, TECK up by 2.20%, Metal up by 2.07%, Capital Goods up by 1.79%, Basic Materials up by 1.71%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Tech Mahindra up by 4.03%, HCL Tech. up by 3.67%, Larsen & Toubro up by 2.43%, Wipro up by 2.40% and Infosys up by 2.40%.

Meanwhile, expressing optimism over the country’s growth, Commerce and Industry Minister Piyush Goyal has said that India is one of the fastest-growing economies in the world and it is expected to reach $30 trillion in the coming 30 years. He added if India grows at 8 per cent every year on a compounded annual growth basis, the economy will double in about nine years. He said the country’s economy at present stood at about $3.2 trillion and in nine years from today, it will be about $6.5 trillion. He further said ‘another nine years, that is 18 years from now, we will be about $13 trillion economy. And then another nine years after that, that is 27 years from now, we will be a $26 trillion economy… Then obviously, 30 years from today, confidently we can all expect that the Indian economy will be a $30 trillion economy’.

The minister said some ‘naysayers’ have raised questions on these numbers but they should come to places like Tiruppur to see the significant jump in the growth of sectors like textiles. He also said that the country’s economy is growing at a healthy pace even in the current challenging times because of the ongoing war between Ukraine and Russia and Covid-19 pandemic. He noted that the war has led to a shortage of certain commodities in the global markets and it has pushed the world inflation, but India has managed to maintain its inflation at a reasonable level.

About the textiles industry, he said the industry size at present is about Rs 10 lakh crore and exports are about Rs 3.5 lakh crore. Given the potential, the industry is targeting to reach Rs 20 lakh crore in terms of industry size and Rs 10 lakh crore exports in the next five years. He also said that Tiruppur has become a global apparel hub and is exporting goods worth over Rs 30,000 crore from Rs 15 crore, 37 years back. He added there is a need to create 75 such textile cities in the country. He highlighted that the sector provides direct employment to 6 lakh people and indirect employment to 4 lakh people, therefore, collectively providing employment to 10 lakh people. He added all over India, roughly 3.5-4 crore people are engaged in the total value chain of the textile sector alone. Textiles is the second largest provider of work after agriculture.

The CNX Nifty is currently trading at 15910.15, up by 210.90 points or 1.34% after trading in a range of 15862.60 and 15927.45. There were 49 stocks advancing against 1 stock declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.97%, HCL Technologies up by 3.74%, JSW Steel up by 3.12%, Infosys up by 2.48% and Wipro up by 2.40%. On the flip side, Apollo Hospital down by 0.71% was the sole loser.

Asian markets are trading mostly in green; Nikkei 225 surged 367.26 points or 1.39% to 26,859.23, Straits Times rose 17.50 points or 0.56% to 3,129.15, Hang Seng jumped 668.78 points or 3.08% to 22,387.84, Taiwan Weighted soared 327.98 points or 2.14% to 15,631.30, KOSPI advanced 47.85 points or 2.02% to 2,414.45 and Shanghai Composite was up by 29.41 points or 0.88% to 3,379.16, while Jakarta Composite was down by 53.08 points or 0.75% to 6,989.86.