Markets hold strength in noon deals

Markets were trading in fine fettle, with Sensex and Nifty crossing 59200 and 17600 levels, in the noon session due to buying in Bankex, PSU and TECK stocks. Gains in frontline blue chip stocks such as Bajaj Finance, Mahindra & Mahindra and Bajaj Finserv also helped to lift the markets. Sentiments were upbeat as Monthly Economic Report of the Department of Economic Affairs, Ministry of Finance said India retained its status as an attractive destination among a set of developed and developing economies, as the 5th largest recipient of FDI in the April-June quarter. Additional support came as foreign investors pumped Rs 12,000 crore into the Indian equity market so far this month on hopes that global central banks, particularly the US Fed, may go slow on rate hikes as inflation starts to cool off. On the global front, Asian markets were trading mostly lower as investors braced for another interest rate hike by the U.S. Federal Reserve.

The BSE Sensex is currently trading at 59229.24, up by 388.45 points or 0.66% after trading in a range of 58487.76 and 59277.55. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.28%, while Small cap index was up by 0.24%.

The top gaining sectoral indices on the BSE were Bankex up by 0.76%, PSU up by 0.72%, TECK up by 0.70%, IT up by 0.65% and Energy was up by 0.55%, while Telecom down by 0.67%, Realty down by 0.62%, Capital Goods down by 0.57%, Consumer Durables down by 0.37% and Metal was down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.16%, Mahindra & Mahindra up by 2.89%, Bajaj Finserv up by 2.26%, SBI up by 1.75% and HDFC was up by 1.69%. On the flip side, Asian Paints down by 1.56%, Tata Steel down by 0.95%, Maruti Suzuki down by 0.94%, Larsen & Toubro down by 0.40% and ICICI Bank was down by 0.35% were the top losers.

Meanwhile, an article published in the Reserve Bank of India’s (RBI) bulletin has said that India's current account deficit (CAD), a key indicator of balance of payment of a country, is expected to be within 3.0 per cent of GDP in 2022-23 as against 1.2 per cent during the last fiscal. It said the widening trade deficit, or the gap between the value of imports and exports, puts pressure on the balance of payments.  It noted that India's trade deficit during the first five months of 2022-23 widened to $124.5 billion from $54 billion in the previous corresponding period. In the entire fiscal 2021-22, the trade deficit was $189.5 billion.

The article said most importantly, future prices for crude oil contracts over the next few months have softened. International prices of vegetable oils and fertilisers are also looking more benign than before. It noted that there are other bright spots too and added that in August, exports of petroleum products have rebounded y-o-y. Overall, the export target of $750 billion for goods and services for 2022-23 is appearing within reach.

In addition, it said India is cementing its position as the top remittances’ receiver in the world, with inflows touching $90 billion last year and set to create a new record. It said with portfolio flows returning and foreign direct investment remaining strong, this order of deficit is eminently financeable. However, it said the opinions expressed in the article are those of the authors and do not represent the views of the RBI.

The CNX Nifty is currently trading at 17640.95, up by 110.10 points or 0.63% after trading in a range of 17429.70 and 17667.20. There were 32 stocks advancing against 17 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Bajaj Finance up by 3.24%, Mahindra & Mahindra up by 3.00%, Adani Ports up by 3.00%, Bajaj Finserv up by 2.23% and SBI Life Insurance was up by 2.10%. On the flip side, Cipla down by 1.46%, Tata Motors down by 1.26%, Asian Paints down by 1.18%, Britannia Inds down by 1.14% and Tata Steel was down by 0.90% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 136.08 points or 0.93% to 14,425.68, Straits Times trembled 7.09 points or 0.22% to 3,261.20, Hang Seng decreased 211.33 points or 1.13% to 18,550.36, KOSPI fell 27.12 points or 1.14% to 2,355.66 and Shanghai Composite was down by 19.61 points or 0.63% to 3,106.79. On the flip side, Jakarta Composite was up by 7.93 points or 0.11% to 7,176.80.