Bourses trade with strength in late afternoon session

Indian equity benchmarks were trading strength to strength in late afternoon session ahead of monthly F&O expiry. The overall market breadth was positive as 1895 shares were advancing and 1380 were declining, while 163 shares were unchanged on the BSE. Huge buying in IT and Realty counters pulled up the markets higher. Globally, investors took support after Federal Reserve officials raised interest rates by 75 basis points for the second straight month, delivering the most aggressive tightening in more than a generation to curb surging inflation but risking a sharp blow to the economy. Sector wise, Telecom sector remain in focused, as minister of state for communications Devusinh Chauhan has said that telecom service providers May launch 5G mobile service in the current financial year (FY23). Besides, manufacturing sector attracted foreign direct investments worth $21.34 billion in 2021-22, an increase of 76 per cent year-on-year.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from global markets overnight, as traders reacted to the US Fed's widely anticipated interest rate hike and Fed Chair Jerome Powell's comments that he does not think the U.S. is currently in a recession. However, European markets were trading mostly in red as a slew of downbeat earnings including from Santander took the shine off a global rally driven by easing worries about the future pace of U.S. interest rate hikes.

The BSE Sensex is currently trading at 56866.30, up by 1049.98 points or 1.88% after trading in a range of 56236.45 and 56879.32. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.75%, while Small cap index was up by 0.61%.

The top gaining sectoral indices on the BSE were IT up by 2.40%, Realty up by 2.25%, TECK up by 2.07%, Bankex up by 1.81% and Metal was up by 1.60%, while Telecom was down by 0.61% was the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 10.72%, Bajaj Finserv up by 9.55%, Tata Steel up by 4.64%, Kotak Mahindra Bank up by 4.36% and Indusind Bank up by 3.99%. On the flip side, Bharti Airtel down by 1.36%, Dr. Reddy's Lab down by 1.17%, Ultratech Cement down by 0.82%, Sun Pharma down by 0.47% and Larsen & Toubro down by 0.24% were the top losers.

Meanwhile, highlighting measures taken by the government to boost exports, the Ministry of Commerce & Industry in its latest report has showed that the overall (merchandise plus services) exports increased from $52.8 billion in June 2021 to $64.9 billion in June 2022. As per the Ministry of Commerce & Industry, the overall (merchandise plus services) imports increased from $52.9 billion in June 2021 to $82.4 billion in June 2022.

The Ministry underlined various measures such as Foreign Trade Policy (2015-20) extended upto September 30, 2022; assistance provided through several schemes to promote exports, namely, Trade Infrastructure for Export Scheme (TIES) and Market Access Initiatives (MAI) Scheme; and common Digital Platform for Certificate of Origin has been launched to facilitate trade and increase Free Trade Agreement (FTA) utilization by exporters.

Apart from this, measures including package announced in light of the COVID pandemic to support domestic industry through various banking and financial sector relief measures, especially for MSMEs; and launching of districts as export hubs by identifying products with export potential in each district, addressing bottlenecks for exporting these products and supporting local exporters/manufacturers to generate employment in the district, were also mentioned by the Ministry.

The CNX Nifty is currently trading at 16919.00, up by 277.20 points or 1.67% after trading in a range of 16746.25 and 16930.55. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 10.46%, Bajaj Finserv up by 9.42%, Tata Steel up by 4.65%, Kotak Mahindra Bank up by 4.32% and Indusind Bank up by 3.89%. On the flip side, Shree Cement down by 2.70%, Bharti Airtel down by 1.51%, Dr. Reddy's Lab down by 1.20%, Tata Motors down by 1.07% and Hero MotoCorp down by 0.81% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 99.73 points or 0.36% to 27,815.48, Jakarta Composite soared 58.60 points or 0.85% to 6,956.82, KOSPI rose 19.74 points or 0.82% to 2,435.27, Straits Times advanced 14.87 points or 0.46% to 3,220.01 and Shanghai Composite was up by 6.82 points or 0.21% to 3,282.58. On the flip side, Taiwan Weighted dropped 29.69 points or 0.2% to 14,891.90 and Hang Seng was down by 47.36 points or 0.23% to 20,622.68.

European markets were trading mostly in red, UK’s FTSE 100 decreased 22.74 points or 0.31% to 7,325.49 and Germany’s DAX was down by 42.58 points or 0.32% to 13,123.80. On the flip side, France’s CAC was up by 4.18 points or 0.07% to 6,262.12.