Benchmarks trade near day’s high points in late morning deals

Indian equity markets magnified their gains and traded near day’s high points in late morning deals as participants indulged in enlarging positions. Gains in markets were led by fast-moving consumer goods (FMCG) and metal stocks. Positive cues from other Asian markets, after China's decision to support property developers to boost demand, also supported sentiments.  Further, traders were getting encouragement as British Prime Minister Rishi Sunak has reiterated the UK's commitment to a Free Trade Agreement (FTA) with India as part of the country's wider focus on enhancing ties with the Indo-Pacific region. In stock specific development, Lupin rallied after its Brazilian subsidiary acquired nine brands from a subsidiary of Bausch Health Companies Inc. 

On the global front, Asian markets were mostly trading in green boosted by Chinese property companies after the securities regulator in China lifted the ban on equity refinancing for listed property firms. Back home, there were some buzz in banking related stocks as Fitch Ratings has said that India's bank credit growth will accelerate in the financial year ending March 2023 (FY23), despite the effects of higher interest rates. It stated strong loan growth should benefit net revenue, particularly as it will be coupled with wider net interest margins. 

The BSE Sensex is currently trading at 62792.72, up by 287.92 points or 0.46% after trading in a range of 62362.08 and 62849.28. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.10%, while Small cap index up by 0.11%.

The top gaining sectoral indices on the BSE were FMCG up by 1.71%, Consumer Durables up by 0.83%, Metal up by 0.70%, Healthcare up by 0.54% and Bankex up by 0.45%, while Capital Goods down by 0.53%, Oil & Gas down by 0.35%, Telecom down by 0.35%, Industrials down by 0.33% and Energy down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.14%, Nestle up by 1.62%, Tata Steel up by 1.38%, Titan Co up by 1.35% and ICICI Bank up by 1.23%. On the flip side, Power Grid Corp down by 1.15%, Indusind Bank down by 1.11%, Larsen & Toubro down by 0.90%, Bajaj Finserv down by 0.51% and Asian Paints down by 0.25% were the top losers.

Meanwhile, rating agency ICRA has said that passenger vehicle makers are likely to invest around Rs 65,000 crore by FY25 to ramp up production capacities to cater to enhanced demand. It stated that the demand for passenger vehicles has remained healthy since the turn of the calendar year, aided by strong underlying demand and an easing up of semiconductor shortages.

According to the report, the passenger vehicle industry wholesale volumes are expected to touch an all-time high of 3.7-3.8 million units in FY23, a growth of 21-24 per cent over the previous fiscal, driven by robust demand. It also said with ease in supply chain constraints and semiconductor shortage, capacity utilisation of the OEMs (Original Equipment Manufacturers) improved to healthy levels over the past few quarters -- factoring in a continuation of strong demand sentiments, the OEMs have now revved up their capacity expansion plans.

The report further said with the OEMs also budgeting for a substantial outlay towards new product development, including the development of capabilities/dedicated platforms for electric vehicles, the aggregate capex outlay for the OEMs is estimated to remain heightened at Rs 650 billion over FY2023-FY2025. It said multiple OEMs have already announced an aggregate outlay in excess of Rs 250 billion towards capacity expansion for the next few fiscals. It added that while adding new capacities will marginally moderate the capacity utilisation levels over the next few years, given the healthy demand environment, the utilisation is likely to remain at comfortable levels at around 70 per cent. 

The CNX Nifty is currently trading at 18646.30, up by 83.55 points or 0.45% after trading in a range of 18552.15 and 18662.60. There were 36 stocks advancing against 13 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.20%, Hindalco up by 1.84%, Nestle up by 1.66%, Hero MotoCorp up by 1.60% and Titan Co up by 1.48%. On the flip side, Power Grid Corp down by 1.04%, Indusind Bank down by 1.01%, BPCL down by 0.97%, Larsen & Toubro down by 0.91% and Coal India down by 0.83% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 152.77 points or 1.05% to 14,709.64, Straits Times advanced 28.62 points or 0.88% to 3,268.68, Shanghai Composite gained 64.50 points or 2.1% to 3,143.05, KOSPI rose 21.34 points or 0.89% to 2,429.61 and Hang Seng increased 690.02 points or 3.99% to 17,987.96.  However, Nikkei 225 slipped 126.31 points or 0.45% to 28,036.52 and Jakarta Composite lost 10.78 points or 0.15% to 7,006.58.