Bourses continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the noon session due to buying in Telecom, Capital Goods and Realty stocks. Buying in frontline stocks such as Indusind Bank, Bharti Airtel and Axis Bank were aiding sentiment, while selling in Tech Mahindra, Kotak Mahindra Bank and Reliance Industries kept the gains in the markets in check. Traders were getting comfort as foreign Institutional Investors (FIIs) bought shares worth a net Rs 1780.94 crore in the Indian equity market on July 20, exchange data showed. Additional support came with former Niti Aayog Vice Chairman Arvind Panagariya’s statement that Indian economy, which has grown fairly rapidly in the last 17 years, will grow at 7-8 per cent in the next couple of decades. However, upside remain capped with private report stating that India’s economic activity showed early signs of cooling off in June as acute price pressures, rising interest rates, and a falling rupee dampened sentiment after a strong showing the previous month.

On the global front, Asian markets were trading mixed amid forthcoming central bank meetings in Europe and Japan and uncertainty over the supply of Russian gas. Back home, in scrip specific developments, SBI surged on getting nod to raise fund of Rs 11000 crore in FY23 and IndusInd Bank zoomed on reporting 61% rise in Q1 consolidated net profit.

The BSE Sensex is currently trading at 55564.87, up by 167.34 points or 0.30% after trading in a range of 55270.75 and 55626.45. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.94%, while Small cap index was up by 0.76%.

The top gaining sectoral indices on the BSE were Telecom up by 2.14%, Capital Goods up by 1.10%, Realty up by 1.07%, Industrials up by 0.89% and Basic Materials was up by 0.75%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Indusind Bank up by 8.93%, Bharti Airtel up by 1.12%, Axis Bank up by 1.04%, Bajaj Finance up by 1.04% and Bajaj Finserv was up by 1.03%. On the flip side, Tech Mahindra down by 1.64%, Kotak Mahindra Bank down by 0.85%, Reliance Industries down by 0.78%, NTPC down by 0.17% and Ultratech Cement was down by 0.04% were the top losers.

Meanwhile, Minister of state for electronics and IT Rajeev Chandrasekhar has said that electronic goods exports from the country grew by about 42 percent to Rs 1,16,894 crore in 2021-22. He said there has been an increase in both manufacturing and exports of electronic goods in the country in the last five years. He pointed out that the export of electronic goods has substantially increased in the period 2017-18 to 2021-22 with a compound annual growth rate of 29 percent whereas the production has grown with a compound annual growth rate of 17.9 percent.

According to data shared by the minister, electronics export from the country were Rs 81,822 crore in 2020-21. The electronics production in the country grew to Rs 5,54,461 crore in 2020-21 from Rs 5,33,550 crore in 2019-20.  He said so far, 314 applicants with an investment of Rs 86,912 crore and committed incentives of Rs 9,544 crore have been approved. Incentives amounting to Rs 1,781.02 crore have been disbursed. Out of 314 units approved, 271 units have invested Rs 31,416 crore and 233 units have started production.

The minister further said that the government has committed Rs 409 crore funds through electronics development, which aims to foster research and development and innovation in technology sectors. Rs 409 crore has been committed through EDF (Electronics Development Fund) to 9 Daughter Funds with a targeted corpus of Rs 2,626 crore. To date, EDF has invested Rs 236.48 crore in 8 Daughter funds with direct employment generation of 18,500.

The CNX Nifty is currently trading at 16568.80, up by 47.95 points or 0.29% after trading in a range of 16483.90 and 16592.10. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 7.99%, Hindalco up by 2.30%, UPL up by 2.21%, Adani Ports up by 1.41% and Tata Consumer Products was up by 1.24%. On the flip side, Tech Mahindra down by 1.66%, SBI Life Insurance down by 1.24%, Reliance Industries down by 0.97%, Kotak Mahindra Bank down by 0.97% and Tata Motors was down by 0.28% were the top losers.

Asian markets were trading mixed; Straits Times trembled 19.96 points or 0.63% to 3,150.33, Hang Seng decreased 196.28 points or 0.94% to 20,693.94, Shanghai Composite declined 17.47 points or 0.53% to 3,287.25 and Jakarta Composite was down by 54.09 points or 0.79% to 6,820.65.

On the other hand, KOSPI rose 22.55 points or 0.94% to 2,409.40, Taiwan Weighted strengthened 204.48 points or 1.39% to 14,937.70 and Nikkei 225 was up by 122.74 points or 0.44% to 27,803.00.