Benchmarks continue firm trade in morning session

Indian equity benchmarks continued their firm trade in the morning session on account of buying in frontline blue chip counters. The sentiments remained upbeat with the commerce and industry ministry stating that foreign direct investment (FDI) inflows in the research and development sector have increased to $343.64 million in 2021 against $55.77 million in 2020. Traders took support from Economic Affairs Secretary Ajay Seth’s statement that the rupee is managed well and there is nothing to be 'overtly' worried about the depreciation in the domestic currency against the US dollar. Traders also took a note of Rajya Sabha informed that cases of frauds on public sector banks have come down by about 50 per cent in FY'22 to 2,369 as against 4,680 recorded in the previous fiscal. The amount involved in the frauds too declined to Rs 3,204 crore from Rs 7,306 crore in 2020-21.

On the global front, Asian markets are trading in green as strong US corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession. Back home, stocks related to Auto sector remained in watch as Minister of State for Skills and Development Rajeev Chandrasekhar said the automobile sector in India will create at least 1 crore jobs for youth over the next 5-6 years.

The BSE Sensex is currently trading at 55427.76, up by 660.14 points or 1.21% after trading in a range of 55313.85 and 55523.52. All the 30 stocks were advancing on the index. 

The broader indices were trading in green; the BSE Mid cap index rose 0.70%, while Small cap index was up by 0.87%.

The top gaining sectoral indices on the BSE were IT up by 1.76%, Metal up by 1.75%, TECK up by 1.48%, Energy up by 1.39% and Oil & Gas up by 1.28%, while Realty down by 0.35% was the lone losing index on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.33%, Titan Company up by 2.31%, Reliance Industries up by 2.29%, Infosys up by 1.79% and Hindustan Unilever up by 1.63%, while there were no losers on the Sensex.

Meanwhile, the Securities and Exchange Board of India (Sebi) in its latest data has showed that investment in the Indian capital markets through participatory notes (P-notes) declined to Rs 80,092 crore till June-end, making it the lowest level in 20 months, on aggressive rate hike by the US Federal Reserve. According to data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 80,092 crore at June-end compared to Rs 86,706 crore at May-end.

This was the lowest level since October 2020, when investment through the route was at Rs 78,686 crore. The June figure also marks the second consecutive monthly decline in investment numbers. Of the total Rs 80,092 crore invested through the route till June 2022, Rs 70,644 crore was invested in equities, Rs 9,355 crore in debt, and Rs 92 crore in hybrid securities.

In comparison, Rs 70,644 crore was invested in equities and Rs 9,355 crore in debt during May. P-notes are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

The CNX Nifty is currently trading at 16541.85, up by 201.30 points or 1.23% after trading in a range of 16501.55 and 16565.45. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.38%, Reliance Industries up by 2.70%, Tech Mahindra up by 2.38%, Tata Motors up by 2.35% and Titan Company up by 2.23%. On the flip side, HDFC Life Insurance down by 1.13% and Eicher Motors down by 0.44% were the top losers.

All the Asian markets are trading in green; Hang Seng increased 359.55 points or 1.74% to 21,020.61, Taiwan Weighted strengthened 92.17 points or 0.63% to 14,786.25, KOSPI rose 18.39 points or 0.78% to 2,389.36, Shanghai Composite gained 21.82 points or 0.67% to 3,301.25, Straits Times advanced 41.49 points or 1.33% to 3,159.28, Jakarta Composite soared 120.94 points or 1.8% to 6,857.03 and Nikkei 225 surged 676.32 points or 2.51% to 27,638.00.