Domestic indices trade firm in early deals: Nifty above 17,450 mark

Indian equity benchmarks extended their previous session’s gains with positive opening on Thursday mirroring firm global cues. Markets are trading firm with notable gains of around half a percent each in early deals led by IT, TECK and Metal stocks. Sentiments got some support as the finance ministry released the fifth instalment of revenue deficit grant of Rs 7,183 crore to 14 states for the current fiscal. Traders took note of report that the government plans to facilitate easier financing norms to activities pertaining to the manufacturing and services hubs envisaged under the proposed revamped law for Special Economic Zones (SEZs), also known as Development (Enterprise and Services) Hub Bill, 2022. Though, market sentiments remained somewhat subdued as the government data showed that India's foreign direct investment to gross domestic product ratio eased to 2.7% in fiscal year ending March. 31, 2022 from 3.1% in the previous financial year.

Global cues remained supportive with most of the Asian markets trading higher, following the broadly positive cues from global markets overnight, as traders reacted positively to some upbeat U.S. economic data on services sector activity and manufactured goods new orders, which helped ease concerns about a lingering recession and sharper interest rate hikes. However, rising tensions between the U.S. and China after House Speaker Nancy Pelosi's visit to Taiwan and the threatened response by China is weighing on the market.

Back home, sugar industry stocks were buzzing as the Cabinet hiked the fair and remunerative price (FRP) of sugarcane for the 2022-23 season, which starts from October, by Rs 15 per quintal to Rs 305, triggering calls from sugar mills for a commensurate rise in the minimum sale price (MSP) of sugar to keep their businesses competitive. In stock specific developments, Adani Power hit 52-week high after it reported a 16-fold jump in consolidated net profit to Rs 4,780 crore in Q1FY23. Inox Leisure rose after delivering its highest ever quarterly revenues.

The BSE Sensex is currently trading at 58650.52, up by 299.99 points or 0.51% after trading in a range of 58549.91 and 58712.66. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.64%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were IT up by 1.71%, TECK up by 1.43%, Metal up by 1.31%, Basic Materials up by 1.18%, Capital Goods up by 0.91%, while Realty down by 0.50%, PSU down by 0.15%, Telecom down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.17%, Wipro up by 1.76%, Tech Mahindra up by 1.47%, Dr. Reddy's Lab up by 1.15% and Larsen & Toubro up by 1.09%. On the flip side, NTPC down by 1.25%, SBI down by 1.07%, Titan Company down by 0.48%, Bharti Airtel down by 0.22% and Reliance Industries down by 0.17% were the top losers.

Meanwhile, with an aim to spur economic activities, the Confederation of Indian Industry (CII) president Sanjiv Bajaj has asked the Central government to contemplate reducing the personal income tax rates. He also said the country's underlying growth drivers are strong and the economy would grow in the range of 7.4 per cent to 8.2 per cent in the next fiscal. He noted that ‘putting more money in the pockets of the consumers is of vital importance to revive consumption demand in the economy. The government should contemplate a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive the demand cycle.’

Bajaj said ‘the Central and state capex are rising and tax buoyancy would support growth in FY23. Hence, on balance, CII has retained India's GDP forecast in a range of 7.4 to 8.2 per cent in FY23’. He also said the CII believes that there is a lot that industry and CII could do themselves in taking India to a $40 trillion goal post by 2047. He also maintained that India needs to boost its forex reserves to revive the economy especially in view of the capital outflows by foreign institutional investors, prompted by an uncertain global economic environment.

He opined ‘the government should work towards inclusion of some of the large market cap companies into the global equity indices like MSCI and FTSE indices, expedite India's entry into J P Morgan's Global Emerging-Market Bond Index and Barclays Global Bond Index, and consider bringing out a special issue of India Millennial Bonds like was done in 2008’. He also predicted that by 2027, some initiatives will make India a $5 trillion economy. Bajaj underscored the importance of expanding the Production Linked Incentive Scheme (PLIS) and bringing more sectors within its ambit, especially those which are labour intensive and also in sectors where imports are high.

The CNX Nifty is currently trading at 17475.80, up by 87.65 points or 0.50% after trading in a range of 17446.95 and 17490.70. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.84%, Infosys up by 2.11%, Wipro up by 1.70%, Cipla up by 1.58% and Eicher Motors up by 1.51%. On the flip side, Tata Consumer Products down by 2.98%, NTPC down by 1.16%, SBI down by 1.01%, Titan Company down by 0.59% and Britannia Industries down by 0.53% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 160.47 points or 0.58% to 27,902.37, Straits Times added 5.78 points or 0.18% to 3,257.84, Hang Seng jumped 253.23 points or 1.28% to 20,020.32, KOSPI advanced 6.23 points or 0.25% to 2,467.68, Jakarta Composite rose 14.94 points or 0.21% to 7,061.58 and Shanghai Composite was up by 4.72 points or 0.15% to 3,168.39, while Taiwan Weighted was down by 178.75 points or 1.21% to 14,598.27.