Benchmarks trade in green in morning deals

Indian equity benchmarks erased initial losses and were trading in green in morning deals, led by gains in Capital Goods, Industrials and Realty stocks. Traders took some support with Minister of State for Finance Bhagwad Karad stated that the amount involved in fraud cases reported by public sector banks (PSBs) has come down to Rs 3,204 crore in the last fiscal from Rs 28,884 crore in 2017-18. However, gains remain capped as the International Monetary Fund (IMF) in its World Economic Outlook update July 2022 has cut India's growth rate by 0.8 percentage point to 7.4 per cent for fiscal year 2022, reflecting ‘mainly less favourable external conditions and more rapid policy tightening’.  

On the global front, Asian markets are trading mostly in red as traders prepared for a possible sharp interest rate hike from the Federal Reserve to cool inflation. Back home, stocks related to auto component industry remained in focus as Crisil’s report stated that auto component industry is expected to see 9-11 per cent of its revenue coming from EV (Electric Vehicle) parts by 2027 amid increasing electrification. It said this growth will come even as the supply of parts for the conventional internal combustion engine-driven vehicles will also grow during the period.

The BSE Sensex is currently trading at 55469.01, up by 200.52 points or 0.36% after trading in a range of 55157.99 and 55484.09. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.26%, while Small cap index up by 0.14%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.12%, Industrials up by 1.20%, Realty up by 0.93%, PSU up by 0.69%, Healthcare up by 0.59%, while Consumer Durables down by 0.07% and Telecom down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.42%, Sun Pharma Inds. up by 1.96%, Indusind Bank up by 1.26%, SBI up by 1.10% and Hindustan Unilever up by 0.79%. On the flip side, Bajaj Finserv down by 1.01%, Bharti Airtel down by 0.75%, Kotak Mahindra Bank down by 0.66%, Reliance Industries down by 0.18% and Bajaj Finance down by 0.17% were the top losers.

Meanwhile, in order to bolster the overall combat prowess of the armed forces along the northern and western borders, the defence ministry has approved the procurement of military equipment and weapons worth Rs 28,732 crore, including swarm drones and close-quarter battle carbines. It said 'the Acceptance of Necessity (AoN) for capital acquisition proposals of the armed forces amounting to Rs 28,732 crore were accorded by the the Defence Acquisition Council (DAC).'

The approval to the new procurement proposals came amid India's lingering border row with China in eastern Ladakh. The ministry said the approval to procure four lakh close-quarter battle carbines was granted to combat the current complex paradigm of conventional and hybrid warfare and terrorism at the borders.

It also said the decision is set to provide a major impetus to the small arms manufacturing industry in the country and enhance 'Atmanirbharta' (self-reliance) in small arms. It stated considering the demand for enhanced protection against the threat of enemy snipers to our troops deployed along the Line of Control, and in close combat operations in counter-terrorism scenario, DAC accorded AoN for bulletproof jackets with Indian Standard BIS VI level of protection.

The CNX Nifty is currently trading at 16535.90, up by 52.05 points or 0.32% after trading in a range of 16438.75 and 16541.05. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.50%, Sun Pharma up by 1.77%, Grasim Industries up by 1.59%, Cipla up by 1.45% and Indusind Bank up by 1.20%. On the flip side, Apollo Hospital down by 1.62%, Hero MotoCorp down by 1.42%, UPL down by 1.31%, Bajaj Finserv down by 1.04% and Kotak Mahindra Bank down by 0.96% were the top losers.

Asian markets are trading mostly in red; Shanghai Composite declined 3.07 points or 0.09% to 3,274.37, Straits Times trembled 7.57 points or 0.24% to 3,184.55, KOSPI fell 11.21 points or 0.46% to 2,401.75 and Hang Seng decreased 315.42 points or 1.51% to 20,590.46.

On the flip side, Nikkei 225 surged 107.52 points or 0.39% to 27,762.73, Taiwan Weighted strengthened 15.05 points or 0.1% to 14,821.83 and Jakarta Composite soared 5.75 points or 0.08% to 6,877.29.