Markets trade significantly higher in early deals on Tuesday

Markets have opened significantly higher and are trading with gains of over half percent in early deals on Tuesday on account of falling crude oil prices. Both the Sensex and Nifty recaptured their psychological 59800 and 17800 levels respectively. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally.  Sentiments got boost on private report stating that during the April-July period, the central government achieved more than a third of the direct tax collection for this financial year as personal tax collection exceeded corporation tax mop-up amid tightened enforcement and compliance measures. Overall direct tax collections, net of refunds, including corporation and personal income tax, grew by 40 per cent in the first four months of FY23 to Rs 5 trillion, which is nearly 35 per cent of the target of Rs 14.2 trillion for the whole fiscal year. Indian markets were shut on Monday as the nation celebrated its 75th anniversary of Independence.

On the global front, Asian markets are trading mixed amid worries over global growth following weak China data that knocked oil prices and commodity-linked currencies. The US markets ended higher on Monday despite weak industrial output, retail sales and fixed-asset investment data out of China. Back home, shares of Mahindra & Mahindra (M&M) hit 52-week high of Rs 1,298 per share after the company launched five new electric SUVs.

The BSE Sensex is currently trading at 59875.59, up by 412.81 points or 0.69% after trading in a range of 59673.96 and 59883.03. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.56%, while Small cap index up by 0.50%.

The top gaining sectoral indices on the BSE were Auto up by 1.20%, FMCG up by 1.19%, Consumer Discretionary up by 1.05%, Realty up by 0.99% and Bankex up by 0.84%, while Metal down by 0.63% was the only losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.33%, Asian Paints up by 2.05%, Nestle up by 1.53%, Indusind Bank up by 1.25% and Ultratech Cement up by 1.19%. On the flip side, Tata Steel down by 0.49%, NTPC down by 0.35% and Bharti Airtel down by 0.09% were the top losers.

Meanwhile, former RBI Governor D Subbarao has said India may become a USD five trillion economy by 2028-29 only if the GDP grows at nine per cent per annum consistently for the next five years. He said there are eight key challenges for India to overcome to achieve the dream of $5 trillion economy.

According to him, the challenges are increasing investment, improving productivity and education and health outcomes, creating jobs, raising agriculture productivity, maintaining macroeconomic stability, managing global mega trends and improving governance.

Further, Subba Rao said Modi government triggered a debate on State subsidies and all political parties are at fault for the situation. He cautioned that the States and union government must realise that, the country does not have surplus budgets and while some safety net is surely needed. They must be cautious and selective on what freebies to be given from borrowed money and the future generations should not be burdened with unnecessary debt burden.

The CNX Nifty is currently trading at 17819.60, up by 121.45 points or 0.69% after trading in a range of 17764.05 and 17819.85. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 3.23%, Mahindra & Mahindra up by 2.18%, Asian Paints up by 2.05%, UPL up by 1.75% and Eicher Motors up by 1.55%. On the flip side, Grasim Industries down by 2.93%, Hindalco down by 1.64%, ONGC down by 1.15%, Tata Steel down by 0.40% and JSW Steel down by 0.36% were the top losers.

Asian markets are trading mixed; Hang Seng increased 8.90 points or 0.04% to 20,049.76, Shanghai Composite gained 7.78 points or 0.24% to 3,283.87, KOSPI rose 7.57 points or 0.3% to 2,535.51 and Jakarta Composite was up by 24.65 points or 0.35% to 7,117.93. On the other hand; Taiwan Weighted dropped 4.95 points or 0.03% to 15,412.40, Nikkei 225 slipped 14.97 points or 0.05% to 28,856.81 and Straits Times was down by 6.88 points or 0.21% to 3,249.94.