Benchmarks continue to trade in green in morning deals

Indian equity benchmarks erased some of the intraday gains but still are trading in green in morning deals, led by gains in Metal, Basic Materials and Power stocks. Traders took some support with RBI data showing that Bank credit rose by 12.89 per cent to Rs 122.81 lakh crore and deposits by 8.35 per cent to Rs 168.09 lakh crore in the fortnight ended July 15, 2022. Some optimism also came as the commerce ministry said the manufacturing sector attracted foreign direct investments worth $21.34 billion in 2021-22, an increase of 76 per cent year-on-year. Besides, exchange data showed foreign institutional investors (FIIs) became net buyers in the capital markets as they bought shares worth Rs 1,637.69 crore on Thursday.

On the global front, Asian markets are trading mostly in red as the unexpected decline in US GDP for the second consecutive quarter signals the U.S. economy is in a technical recession. Back home, auto industry stocks remained in limelight with a private report that passenger vehicle sales are expected to be robust in July, driven by a large order book and production ramp-up, while commercial vehicle volumes may remain in an uptrend.

The BSE Sensex is currently trading at 57227.62, up by 369.83 points or 0.65% after trading in a range of 57166.32 and 57531.75. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.74%, while Small cap index was up by 0.90%.

The top gaining sectoral indices on the BSE were Metal up by 3.72%, Basic Materials up by 1.71%, Power up by 1.49%, IT up by 1.44% and Utilities up by 1.42%, while Healthcare down by 0.40% and Bankex down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 6.98%, Bajaj Finserv up by 2.10%, NTPC up by 1.86%, Asian Paints up by 1.70% and Tech Mahindra up by 1.63%. On the flip side, Dr. Reddy's Lab down by 3.62%, Sun Pharma down by 0.87%, SBI down by 0.72%, ICICI Bank down by 0.48% and ITC down by 0.26% were the top losers.

Meanwhile, Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textile Piyush Goyal has said increasing cooperation in seven emerging areas like Digital Payments, Space Cooperation, Agri and Dairy, Pharma, Gems and Jewellery, MSME (Micro Small and Medium Enterprises) and Inter-regional cooperation between India and Uzbekistan will help boost economic ties.

The minister also said that both the nations should explore ways to improve connectivity for facilitating trade. Moreover, he said that despite the COVID pandemic, interactions and trade have increased in the last few years.

Bilateral trade between India and Uzbekistan rose from $247 million in 2019-20 to $342 million in 2021-22, a growth of 38.5 per cent. Besides, he mentioned good relations with Uzbekistan is key to India’s vision of an integrated extended neighbourhood.

The CNX Nifty is currently trading at 17056.35, up by 126.75 points or 0.75% after trading in a range of 17031.75 and 17141.75. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 7.97%, Tata Steel up by 7.27%, Hindalco up by 3.66%, JSW Steel up by 2.35% and Bajaj Finserv up by 2.24%. On the flip side, Dr. Reddy's Lab down by 3.72%, Cipla down by 1.10%, Shree Cement down by 0.91%, Sun Pharma down by 0.88% and SBI down by 0.63% were the top losers.

Asian markets are trading mostly in red; Straits Times trembled 16.01 points or 0.5% to 3,204.64, Shanghai Composite declined 23.72 points or 0.72% to 3,258.86, Nikkei 225 slipped 67.32 points or 0.24% to 27,748.16 and Hang Seng decreased 473.78 points or 2.3% to 20,148.90.

On the flip side, Taiwan Weighted strengthened 87.85 points or 0.59% to 14,979.75, Jakarta Composite soared 32.62 points or 0.47% to 6,989.44 and KOSPI rose 10.92 points or 0.45% to 2,446.19.