Domestic indices trade in fine-fettle in early deals; Sensex jumps over 500 points

Indian equity benchmarks made gap-up opening on Thursday tracking gains in other global markets. Domestic indices are trading firm with gains of around a percent each in early deals on account of buying in all the sector indices led by Bankex, Telecom and IT. Sentiments got a boost as International Monetary Fund's (IMF) Managing Director Kristalina Georgieva said that despite global uncertainty and headwinds, India continues to be a bright spot in the global economy. Adding more optimism, Sanjiv Bajaj, President of industry body CII said India is in a much better position to deal with the challenges related to growth and inflation. Buying by foreign investors in domestic markets aided sentiments. Foreign institutional investors (FIIs) have net-bought shares worth Rs 758.37 crore on September 7, as per provisional data available on the NSE. Meanwhile, Commerce and industry minister Piyush Goyal has launched an initiative -- SETU (Supporting Entrepreneurs in Transformation and Upskilling) -- to connect startups in India to US-based investors.

Global cues remained supportive with most of the Asian markets trading higher following the broadly positive cues from Wall Street overnight, as traders now feel that interest rate concerns have been priced into the markets and are indulging in picking up stocks at reduced levels following recent weakness. Besides, the Cabinet Office said Japan's gross domestic product expanded an annualized 3.5 percent on year in the second quarter of 2022, beating expectations for a gain of 2.9 percent and up from 0.1 percent in the previous three months. Meanwhile, the renewed COVID-19 induced curbs in China weighed on market sentiment.

Back home, paint industry stocks were buzzing on the bourses as oil prices declined to 7-month lows. Aviation industry stocks were under pressure as Icra in its report stated that domestic airlines industry is expected to report a net loss of around Rs 15,000-17,000 crore this fiscal on account of elevated price of Aviation Turbine Fuel (ATF) and a weak rupee. In stock specific development, New Delhi Television (NDTV) touched lower circuit amid reports that Gautam Adani-led Adani Group's open offer for 26% of shares in NDTV is set to open on October 17.

The BSE Sensex is currently trading at 59592.65, up by 563.74 points or 0.96% after trading in a range of 59374.99 and 59638.63. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 0.85%.

The top gaining sectoral indices on the BSE were Bankex up by 1.17%, Telecom up by 1.16%, IT up by 1.13%, TECK up by 1.11%, Auto up by 0.86%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were ICICI Bank up by 2.23%, Bharti Airtel up by 2.02%, Mahindra & Mahindra up by 1.88%, Asian Paints up by 1.85% and Tech Mahindra up by 1.69%, while there was no loser on the Sensex.

Meanwhile, highlighting inflation has come down to a manageable level, Finance Minister Nirmala Sitharaman has said the country’s economic growth remains a priority for the government. She added that job creation and equitable distribution of wealth remain the other focus areas. She said ‘some of course are red-lettered (priorities), some may not be. Red-lettered ones would of course be jobs, equitable wealth distribution and making sure India is moving on the path of growth.’

She also said ‘In that sense inflation is not red-lettered. I hope it doesn’t surprise many of you. We have shown that in the past couple of months that we were able to bring it to a manageable level’. According to the government data, retail inflation softened to 6.71 per cent in July due to moderation in food prices but remained above the Reserve Bank’s comfort level of 6 per cent for the seventh consecutive month. The Consumer Price Index (CPI) based retail inflation was at 7.01 per cent in June and 5.59 per cent in July 2021. It was above 7 per cent from April to June this fiscal. She exuded confidence that the Reserve Bank would manage the volatility emerging from aggressive rate hike stance by the US Fed and the European Central Bank.

About fiscal management during the COVID-19 period, she said India with a targeted fiscal policy managed through a challenging time without printing money. Referring to the global energy crisis triggered by the ongoing Russia-Ukraine war, she said uncertainty over availability of crude, natural gas continues. She also urged for deepening of ties between India and the US in all respects including on payment technology.

The CNX Nifty is currently trading at 17765.25, up by 140.85 points or 0.80% after trading in a range of 17732.55 and 17792.20. There were 42 stocks advancing against 7 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were BPCL up by 3.01%, Bharti Airtel up by 2.38%, ICICI Bank up by 2.24%, Mahindra & Mahindra up by 1.92% and Asian Paints up by 1.78%. On the flip side, SBI Life Insurance down by 0.85%, Coal India down by 0.59%, Cipla down by 0.39%, Hindalco down by 0.25% and ONGC down by 0.19% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 559.84 points or 2.04% to 27,990.14, Straits Times rose 28.71 points or 0.89% to 3,239.54, Taiwan Weighted jumped 131.91 points or 0.92% to 14,541.96, KOSPI added 12.74 points or 0.54% to 2,389.20 and Jakarta Composite soared 74.98 points or 1.04% to 7,261.74. On the other hand, Hang Seng fell 90.60 points or 0.48% to 18,953.70 and Shanghai Composite was down by 4.68 points or 0.14% to 3,241.61.