Benchmarks manage to trade in green in morning deals

Domestic benchmark indices managed to trade in green in morning deals, led by gains in Metal, Capital Goods and Auto stocks. Traders took some support with a private report stating that the Centre may release about Rs 30,000 crore soon as GST (goods and services tax) compensation for June 2022, the last month of the five-year guaranteed compensation pledged by the Union government. Some support also came as in a bid to promote ease of doing business, the finance ministry notified the consolidated rules for overseas investment by Indian entities. The Foreign Exchange Management (Overseas Investment) Rules, 2022 will subsume extant regulations pertaining to Overseas Investments and Acquisition and Transfer of Immovable Property outside India Regulations, 2015. Traders also took a note of private report stated that the Reserve Bank's rate setting panel is likely to opt for slowing down the pace of hikes and increase the repo rate by 0.25 per cent in September. On the global front, Asian markets are trading mostly in red after a renewed spike in European energy prices stoked fears of recession and unease over China's economy.

The BSE Sensex is currently trading at 58865.93, up by 92.06 points or 0.16% after trading in a range of 58172.48 and 59068.25. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Metal up by 1.39%, Capital Goods up by 1.25%, Auto up by 1.09%, Basic Materials up by 0.99% and Healthcare up by 0.81%, while IT down by 1.37%, TECK down by 1.25%, Power down by 0.83% and Utilities down by 0.83% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.09%, Mahindra & Mahindra up by 2.47%, Sun Pharma up by 1.84%, Tata Steel up by 1.71% and Larsen & Toubro up by 1.60%. On the flip side, Infosys down by 1.88%, Tech Mahindra down by 1.85%, HCL Technologies down by 1.57%, TCS down by 1.05% and Wipro down by 0.89% were the top losers.

Meanwhile, Automotive Component Manufacturers Association (ACMA) has said that Indian auto components industry clocked its highest-ever turnover of Rs 4.2 trillion in 2021-22, registering a growth of 23 per cent on the back of strong performance in exports and aftermarket.  ACMA stated while auto parts’ imports rose 33 per cent in 2021-22, exports grew 43 per cent in the same period. The auto component industry in India exported components worth Rs 1.41 trillion in 2021-22, it said, adding that auto parts worth Rs 1.36 trillion were imported in 2021-22.

It mentioned North America, which accounts for 32 per cent exports, saw a 46 per cent growth. Europe, accounting for 31 per cent and Asia for 25 per cent, respectively, grew 39 per cent and 40 per cent. Moreover, it highlighted around 30 per cent of total auto components’ import is from China, giving it the number one position. Germany is the second-largest source of auto parts for India, accounting for around 11 per cent.
Besides, it noted that key items exported in the last financial year were drive transmission and steering, engine components, body, chassis, suspension, and brakes.

The turnover of auto components' aftermarket stood at Rs 74,203 crore in 2021-22, clocking a growth rate of 15 per cent over the previous year. The aftermarket’s turnover crossed the pre-pandemic levels in 2021-22 because of more vehicles on road, prolonged usage of vehicles, increase in demand of second-hand vehicles, increase in commodity prices, and emergence of new sales channels such as online retailers and multi-brand outlets.

The CNX Nifty is currently trading at 17534.80, up by 44.10 points or 0.25% after trading in a range of 17345.20 and 17588.55. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.08%, Mahindra & Mahindra up by 2.45%, Eicher Motors up by 2.16%, Cipla up by 2.15% and Grasim Industries up by 2.13%. On the flip side, Infosys down by 1.90%, Tech Mahindra down by 1.83%, HCL Technologies down by 1.56%, TCS down by 1.11% and Wipro down by 0.89% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 339.85 points or 1.18% to 28,454.65, Taiwan Weighted dropped 155.62 points or 1.02% to 15,089.52, Hang Seng decreased 96.43 points or 0.49% to 19,560.55, KOSPI fell 23.99 points or 0.97% to 2,438.51 and Straits Times trembled 19.68 points or 0.6% to 3,242.89.

On the flip side, Shanghai Composite gained 5.86 points or 0.18% to 3,283.65 and Jakarta Composite soared 52.69 points or 0.74% to 7,160.67.