Key gauges remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, tracking gains in index-heavyweights Mahindra & Mahindra, Titan Company and Tata Steel amid a firm trend in global markets. Foreign fund inflows into capital markets also added to the momentum. According to exchange data, foreign institutional investors (FIIs) bought shares worth Rs 369.06 crore on Thursday. Traders took some support with S&P Global Ratings said India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness. Traders also took a note of report that strong growth prospects for the Indian economy will provide the Reserve Bank of India (RBI) with more room for further interest rate hikes. It said the stance of (RBI's) 'withdrawal of accommodation' suggests that benchmark rates are not yet at neutral levels, presumably one-two hikes away. On the global front, Asian markets are trading mostly in green as investors awaited Federal Reserve Chairman Jerome Powell's speech later today at the Jackson Hole economic conference for hints on inflation and rate outlook.

The BSE Sensex is currently trading at 59092.97, up by 318.25 points or 0.54% after trading in a range of 59049.19 and 59321.65. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.76%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Metal up by 1.82%, Industrials up by 1.15%, Consumer Durables up by 1.12%, Capital Goods up by 1.09% and PSU up by 1.09%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.19%, Titan Company up by 2.16%, Tata Steel up by 1.79%, Kotak Mahindra Bank up by 1.59% and Tech Mahindra up by 1.31%. On the flip side, Indusind Bank down by 0.84%, Bharti Airtel down by 0.63%, Asian Paints down by 0.39%, Reliance Industries down by 0.33% and Dr. Reddy's Lab down by 0.16% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its 'Quarterly Statistics on Deposits and Credit of SCBs for June 2022', which released on August 25, has stated that bank credit growth accelerated to 14.2 per cent in the quarter ended June 2022 from 6 per cent in the same period of the previous year. In the quarter ended March 2022, bank credit had expanded by 10.8 per cent.

It mentioned credit growth has been broad-based: all the population groups (i.e., rural, semi-urban, urban and metropolitan), all the bank groups (i.e., public/private sector banks, foreign banks, RRBs and SFBs) and all the regions of the country (i.e., central, eastern, north-eastern, northern, southern and western) recorded double-digit annual credit growth in June 2022.

Further, it stated that aggregate deposit growth (year-on-year) has remained in the range 9.5 - 10.2 per cent during the last five quarters. Besides, it said the share of current account and savings account (CASA) deposits in total deposits has been increasing over the last three years (42 per cent in June 2020, 43.8 per cent in June 2021 and 44.5 per cent in June 2022).

The CNX Nifty is currently trading at 17619.55, up by 97.10 points or 0.55% after trading in a range of 17609.95 and 17685.85. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.85%, Titan Co up by 2.21%, SBI Life Insuran up by 2.02%, JSW Steel up by 1.95% and Hindalco up by 1.84%. On the flip side, Eicher Motors down by 2.40%, Bharti Airtel down by 1.11%, Indusind Bank down by 0.75%, Asian Paints down by 0.58% and Reliance Industries down by 0.45% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 163.80 points or 0.58% to 28,642.81, Hang Seng increased 116.39 points or 0.58% to 20,084.77, Taiwan Weighted strengthened 75.79 points or 0.5% to 15,275.83, Straits Times advanced 11.08 points or 0.34% to 3,258.88, KOSPI rose 5.35 points or 0.22% to 2,482.61 and Shanghai Composite gained 4.34 points or 0.13% to 3,250.59.

On the flip side, Jakarta Composite lost 7.21 points or 0.1% to 7,167.00.