Markets trade with gains of over quarter percent in late afternoon session

Markets were trading higher with gains of over quarter percent in late afternoon session tracking positive moves from European markets. Meanwhile, broader indices were also trading higher with gains in the range of 0.35-0.55%. Gains in Oil & Gas, Energy, Metal, PSU and Utilities stocks lifted the headline indices, while losses in Healthcare, TECK, IT, Capital stocks capped upsides. Sentiments got boost with a private report stating that India will be the fastest growing major economy this year and the next despite headwinds from rising inflation, widening trade deficit and a declining rupee. On the global front, Asian markets were trading mostly higher following the mixed cues from Wall Street overnight, as traders reacted to another US Labor Department report showing an unexpected decrease in producer prices in the month of July. European markets were trading higher in cautious trading after the U.K. economy contracted in the second quarter. Back home, in stock specific development, Bharat Forge rallied after the company reported in-line performance for the June quarter (Q1FY23) with standalone revenue up 5.1 per cent sequentially at Rs 1,759 crore.

The BSE Sensex is currently trading at 59485.69, up by 153.09 points or 0.26% after trading in a range of 59113.01 and 59538.08. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 0.54%.

The gaining sectoral indices on the BSE were Oil & Gas up by 2.48%, Energy up by 2.22%, Metal up by 1.99%, PSU up by 1.55% and Utilities up by 1.38%, while Healthcare down by 0.87%, TECK down by 0.75%, IT down by 0.69%, Capital Goods down by 0.17% and Auto down by 0.12% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.13%, Tata Steel up by 3.12%, Power Grid Corp up by 1.95%, Reliance Industries up by 1.80% and ICICI Bank up by 1.27%. On the flip side, Maruti Suzuki down by 1.38%, Infosys down by 1.34%, Larsen & Toubro down by 1.01%, TCS down by 0.98% and Sun Pharma Inds. down by 0.73% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has predicted that the inflation is likely to undershoot the Monetary Policy Committee’s (MPC) Q2 and Q3 FY2023 projections modestly, with expectations of the first monthly sub-6% inflation print in Q3 itself, resulting in the agency’s full-year CPI inflation projection of 6.5%.
As per the report, the moderation in global commodity prices since mid-June 2022 will reduce the pressure on business margins and boost value-added growth in Q2 FY2023. This could support growth in Q3- Q4 FY2023 also if the commodity price downtrend sustains.

Further, the rating agency noted that risks have emerged on account of the flagging external demand and rising uncertainty amidst a global slowdown, which could curtail India’s exports and defer the anticipated broad-basing of private capex activity.

Given the MPC’s focus on anchoring inflation expectations and the RBI Governor’s statement on ensuring that inflation moving closer to the target of 4.0% over the medium term, the agency expects another rate hike of around 10-35 bps in the September 2022 Policy meeting, albeit lower than the newly coined ‘new normal’ of 50 bps. After that, ICRA believes the MPC is likely to turn extremely data dependent.

The CNX Nifty is currently trading at 17709.20, up by 50.20 points or 0.28% after trading in a range of 17597.85 and 17724.65. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.93%, NTPC up by 3.09%, Tata Steel up by 2.89%, Grasim Industries up by 2.27% and UPL up by 2.23%. On the flip side, Divi's Lab down by 5.25%, Apollo Hospital Ent. down by 3.10%, Infosys down by 1.42%, Maruti Suzuki down by 1.40% and Tata Consumer Produc down by 1.23% were the top losers.

Asian markets were trading mostly higher; Taiwan Weighted strengthened 91.12 points or 0.60% to 15,288.97, Hang Seng increased 93.19 points or 0.46% to 20,175.62, KOSPI rose 4.16 points or 0.16% to 2,527.94 and Nikkei 225 was up by 727.65 points or 2.62% to 28,546.98. On the flip side, Jakarta Composite lost 31.11 points or 0.43% to 7,129.28, Shanghai Composite fell 4.78 points or 0.15 % to 3,276.89 and Straits Times was down by 30.81 points or 0.93% to 3,271.15.

European markets were trading higher, UK’s FTSE 100 rose 41.72 points or 0.57% to 7,508.21, Germany’s DAX gained 74.35 points or 0.55% to 13,770.95, France’s CAC surged 32.31 points or 0.49% to 6,575.74.