Local equity markets enlarge gains in late afternoon session

Local equity markets have enlarged their gains in late afternoon session on sustained buying activities in index heavyweights, viz Larsen & Toubro, HDFC and ITC among others. Traders took support after Apparel Export Promotion Council (AEPC) in its latest report has showed that apparel exports rose by about 32 per cent to $4.5 billion during April-June this fiscal as against $3.40 billion in the same period last year. In 2021-22, apparel exports stood at $16.2 billion. Meanwhile, Reserve Bank of India (RBI) in its latest monthly data on India’s International Trade in Services has showed that the country’s services exports increased by 20.2 per cent year-on-year to $23.26 billion in July 2022. However, the July exports were lower than $25.29 billion in June this fiscal. In scrip specific, Adani Enterprises remained in focused, as it is all set to enter National Stock Exchange's (NSE) benchmark index Nifty 50 from September 30.

On the global front, Asian markets were trading mostly in red ahead of a key U.S. jobs report as investors braced for more aggressive rate hikes from the Federal Reserve, while commodities took an overnight dive amid new China lockdowns. European markets were trading higher helped by the likely resumption of Russian gas supplies to Europe, ahead of the release of the key U.S. monthly jobs report.

The BSE Sensex is currently trading at 59025.30, up by 258.71 points or 0.44% after trading in a range of 58558.64 and 59108.66. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.26%, while Small cap index was up by 0.63%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.66%, Telecom up by 1.41%, Industrials up by 1.34%, Bankex up by 0.68% and Consumer Durables was up by 0.53%, while Metal down by 0.14%, IT down by 0.10%, Energy down by 0.09% and Oil & Gas was down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.21%, HDFC up by 1.61%, ITC up by 1.57%, Axis Bank up by 1.25% and HDFC Bank up by 1.19%. On the flip side, Indusind Bank down by 0.57%, Power Grid Corp down by 0.51%, Nestle down by 0.49%, Wipro down by 0.47% and Infosys down by 0.46% were the top losers.

Meanwhile, the Apparel Export Promotion Council (AEPC) in its latest report has showed that apparel exports rose by about 32 per cent to $4.5 billion during April-June this fiscal as against $3.40 billion in the same period last year. In 2021-22, apparel exports stood at $16.2 billion.

Further, AEPC chairman Naren Goenka said that free trade agreements with countries including UAE, Australia and the UK will help neutralise the advantage which India's competitors use to enjoy in some of the important markets. He said ‘to match the growing global demand, our scale has to be larger and skills have to be matched.’

AEPC chairman also noted that the council is making efforts towards promoting brand India at various global platforms as a trusted supplier by showcasing its strength on sustainability, circularity and ethical sourcing. Meanwhile, the council requested the government to announce new Technology Upgradation Fund Scheme (TUFS) and production-linked incentive scheme for the apparel sector.

The CNX Nifty is currently trading at 17612.95, up by 70.15 points or 0.40% after trading in a range of 17476.45 and 17643.85. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 2.20%, Adani Ports up by 1.93%, HDFC up by 1.65%, ITC up by 1.56% and Axis Bank up by 1.30%. On the flip side, Shree Cement down by 1.77%, Hero MotoCorp down by 1.56%, BPCL down by 1.34%, ONGC down by 1.22% and Bajaj Auto down by 1.07% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 145.22 points or 0.74% to 19,452.09, Taiwan Weighted dropped 128.82 points or 0.87% to 14,673.04, Straits Times trembled 12.64 points or 0.39% to 3,211.44, Nikkei 225 slipped 10.63 points or 0.04% to 27,650.84 and KOSPI was down by 6.20 points or 0.26% to 2,409.41. On the flip side, Shanghai Composite gained 1.50 points or 0.05% to 3,186.48 and Jakarta Composite was up by 24.08 points or 0.34% to 7,177.18.

European markets were trading higher, UK’s FTSE 100 increased 47.26 points or 0.66% to 7,195.76, France’s CAC increased 41.79 points or 0.69% to 6,076.10 and Germany’s DAX was up by 162.51 points or 1.29% to 12,792.74.