Benchmarks continue to trade in green in morning deals

Indian equity benchmarks trimmed some gains but continued to trade in green in morning deals, amid positive trends in Asian markets. Traders took some support with the government data showed that India's factory output measured by the Index of Industrial Production (IIP) posted a robust growth of 19.6 per cent in May 2022, sharply higher from 7.1 per cent recorded in the previous month. Also, India's retail inflation eased marginally to 7.01 per cent in June from 7.04 per cent in the previous month helped by softening crude and edible oil prices. However, gains remain capped as some concern came with a private report that the country's current account deficit is likely to touch $105 billion or 3 per cent of the GDP this fiscal, mainly due to continuously widening trade deficit.

On the global front, Asian markets are trading mostly in green even as the International Monetary Fund warned that avoiding recession in the United States will be increasingly challenging  as it again cut its 2022 U.S. growth forecast to 2.3% from 2.9% in late June as recent data showed weakening consumer spending. Back home, banking stocks remained in watch as domestic rating agency ICRA in its latest report has said that rising bond yields will force banks to report Mark-To-Market (MTM) losses of up to Rs 13,000 crore on their investment portfolios in the April-June quarter (Q1FY23).

The BSE Sensex is currently trading at 53996.66, up by 110.05 points or 0.20% after trading in a range of 53981.16 and 54211.22. 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 0.45%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were FMCG up by 0.81%, Basic Materials up by 0.62%, Realty up by 0.52%, Capital Goods up by 0.49% and PSU up by 0.47%, while Power down by 1.04%, Utilities down by 1.03%, Oil & Gas down by 0.89%, Energy down by 0.59% and Auto down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.74%, Asian Paints up by 1.48%, Larsen & Toubro up by 1.17%, Infosys up by 1.17% and Ultratech Cement up by 1.08%. On the flip side, Indusind Bank down by 2.26%, HCL Technologies down by 1.37%, Titan Company down by 0.79%, HDFC Bank down by 0.56% and Reliance Industries down by 0.52% were the top losers.

Meanwhile, with consumer price inflation remaining high, Finance Minister Nirmala Sitharaman has said the government is watchful of the price situation and will continue the pointed attack on inflation. Retail inflation in June eased to 7.01 per cent in June. The print was lower than 7.04 per cent recorded in May but still higher than RBI's comfort level of 6 per cent.

She stated ‘As the RBI has estimated, till the start of the second half of the year, both the central bank and the government will have to be mindful. We will have to be mindful and watchful of how the price movement is. I will keep monitoring item by item to rein in prices for anything that goes haywire. This pointed attack on inflation will need to continue.’

Besides, ‘I see monsoon being favourable to agriculture. (Farm) Production will be good and rural demand will remain intact,’ Sitharaman said, remaining cautiously optimistic about inflation.

The CNX Nifty is currently trading at 16090.30, up by 32.00 points or 0.20% after trading in a range of 16083.85 and 16140.00. There were 33 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 1.74%, Asian Paints up by 1.59%, BPCL up by 1.39%, Larsen & Toubro up by 1.28% and Grasim Industries up by 1.21%. On the flip side, Indusind Bank down by 2.31%, HCL Technologies down by 1.37%, Titan Co down by 0.66%, Reliance Industries down by 0.63% and HDFC Bank down by 0.60% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted strengthened 397.15 points or 2.85% to 14,347.77, Hang Seng increased 130.25 points or 0.62% to 20,974.99, Nikkei 225 surged 94.56 points or 0.36% to 26,431.22, KOSPI rose 14.14 points or 0.61% to 2,331.90 and Shanghai Composite gained 11.82 points or 0.36% to 3,293.29.

On the global front, Straits Times trembled 21.29 points or 0.68% to 3,124.48 and Jakarta Composite lost 36.30 points or 0.54% to 6,681.99.