Benchmarks remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, amid continuing foreign fund inflows and positive global trends. As per data available on the NSE, Foreign institutional investors (FIIs) net bought shares worth Rs 2,049.65 crore on September 12. Sentiments remained positive with Commerce and industry minister Piyush Goyal’s statement that Indian rupee has shown more resilience than most of the other currencies in recent years and the compounded average growth rate of depreciation is lower as compared to pre-2014. Some support also came as the Finance Ministry has attributed the rise in inflation to base effect and increase in food and fuel prices, and stressed that initiatives taken by the government to curb price rise will be felt more significantly in the coming months. Meanwhile, Reserve Bank of India Deputy Governor T Rabi Sankar pressed for a law to protect customers' privacy to ensure that monetization of customer data is done in a responsible manner.

On the global front, Asian markets are trading in green ahead of data traders hope will show surging US inflation eased in August, reducing pressure for more interest rate hikes. Back home, telecom companies stocks remained in watch with report that telecom and satellite operators should look at using the same spectrum bands in coordination with each other and the decision on use of high-frequency range for broadband is likely to be taken in 4-5 months.

The BSE Sensex is currently trading at 60502.44, up by 387.31 points or 0.64% after trading in a range of 60384.38 and 60551.07. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.65%, while Small cap index was up by 0.61%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.36%, Basic Materials up by 1.06%, Metal up by 0.86%, FMCG up by 0.67% and Consumer Discretionary up by 0.60%, while Oil & Gas down by 0.02% was the lone losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 5.39%, Titan Company up by 2.06%, Bajaj Finance up by 1.77%, HDFC up by 1.28% and HDFC Bank up by 1.05%. On the flip side, Sun Pharma down by 0.23% and Tech Mahindra down by 0.01% were the top losers.

Meanwhile, Commerce and industry minister Piyush Goyal has said that Indian rupee has shown more resilience than most of the other currencies in recent years and the compounded average growth rate of depreciation is lower as compared to pre-2014, He also said that exporters should not be dependent on a depreciating rupee and they should stand on their own based on the quality of products and ability to serve the needs of customers in the global markets.

He mentioned ‘I do not think there is any comfortable or uncomfortable level for the rupee. Rupee finds its own place. It's a function of several natural factors -- a function of inflation, capital flows and the risk-reward ratio in each country. I am happy that the Indian rupee has shown more resilience than most of the currencies in recent years.’

He stated ‘If you look at the Indian rupee solely before 2014, and if you took a CAGR (Compounded Annual Growth Rate) of the rupee depreciation, it was in the range of about 3.25-3.5 per cent. Currently, the Indian rupee is depreciating at about 2.5 per cent CAGR, so there has been a significant improvement in the strength of the Indian rupee.’

Besides, talking about the European Union's plan to withdraw export benefits under the Generalised Tariff Preference Scheme (GSP), he expressed confidence that Indian exporters will be able to supply significantly on the basis of their strength. India's exports from sectors such as plastics, stone, machinery and mechanical appliances worth about USD 8 billion to the EU would not be eligible for low- or zero-duty concessions from January 2023 after removal of GSP benefits by the EU.

The CNX Nifty is currently trading at 18033.85, up by 97.50 points or 0.54% after trading in a range of 18020.35 and 18065.50. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 5.09%, HDFC Life Insurance up by 2.19%, Titan Company up by 2.15%, SBI Life Insurance up by 1.72% and Britannia Inds up by 1.50%. On the flip side, Cipla down by 0.38%, Tech Mahindra down by 0.35%, Adani Ports &SEZ down by 0.32%, TCS down by 0.25% and Divi's Lab down by 0.22% were the top losers.

Asian markets are trading in green; Hang Seng increased 79.20 points or 0.41% to 19,441.45, Nikkei 225 surged 44.13 points or 0.15% to 28,586.24, Taiwan Weighted strengthened 66.06 points or 0.45% to 14,873.49, Shanghai Composite gained 10.67 points or 0.33% to 3,272.72, KOSPI rose 61.28 points or 2.57% to 2,445.56, Straits Times advanced 15.22 points or 0.46% to 3,289.94 and Jakarta Composite soared 66.10 points or 0.91% to 7,320.56.