Benchmarks continue to trade in green in morning deals

Indian equity benchmarks continued to trade in green in morning deals, supported by gains across index-heavy-weights like Axis Bank, Mahindra & Mahindra and Bajaj Finserv, among many others. Sentiments remained positive with Chief Economic Advisor V Anantha Nageswaran’s statement that high frequency data indicate buoyant economic growth momentum and the 7% GDP growth estimate for the current fiscal is very realistic. He also said that there are enough signs that manufacturing is in good health. Traders overlooked a private survey showed India's manufacturing sector expanded at the slowest pace in four months in February amid rising borrowing costs & weakness in the sector. However, the sector remained relatively strong amid buoyant domestic demand, despite higher inflationary pressures. India's S&P Global Manufacturing Purchasing Managers' Index remained largely unchanged at 55.3 in February from January's 55.4. It was well above the 50-mark separating expansion from contraction for a 20th straight month. On the global front, Asian markets are trading higher as investors reacted to upbeat factory activity data from China. China's manufacturing sector notched its fastest expansion in more than a decade, according to an official gauge of activity.

The BSE Sensex is currently trading at 59309.35, up by 347.23 points or 0.59% after trading in a range of 59109.54 and 59370.67. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.83%, while Small cap index was up by 1.06%.

The top gaining sectoral indices on the BSE were Metal up by 1.66%, Realty up by 0.94%, Industrials up by 0.92%, Auto up by 0.91% and Bankex up by 0.81%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Axis Bank up by 2.14%, Mahindra & Mahindra up by 2.06%, Bajaj Finserv up by 1.65%, HCL Technologies up by 1.43% and Tata Steel up by 1.39%. On the flip side, Power Grid Corporation down by 1.69% was the lone loser.

Meanwhile, the Ministry of Statics and Programme Implementation in its latest report has stated that India’s economic growth slowed down to 4.4%  in the third quarter of 2022-23 (Q3FY23) mainly due to poor performance of the manufacturing sector. In October-December 2021, the economy grew by 11.2%  and by 6.3%  in the July-September 2022 quarter. GDP at Constant (2011-12) Prices in Q3 2022-23 is estimated at Rs 40.19 lakh crore, as against Rs 38.51 lakh crore in Q3 2021-22. GDP at Current Prices in Q3 2022-23 is estimated at Rs 69.38 lakh crore, as against Rs 62.39 lakh crore in Q3 2021-22, showing a growth of 11.2%.

It has also pegged the country’s growth at 7%  for 2022-23. Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of Rs 159.71 lakh crore, as against the First Revised Estimate of GDP for the year 2021-22 of Rs 149.26 lakh crore. Nominal GDP or GDP at Current Prices in the year 2022-23 is estimated to attain a level of Rs 272.04 lakh crore, as against Rs 234.71 lakh crore in 2021-22, showing a growth rate of 15.9% . Besides, the NSO revised the GDP growth for 2021-22 to 9.1% against the earlier estimate of 8.7%.

In terms of sectors, the manufacturing sector contracted by 1.1% on-year in the quarter as compared to 1.3% growth in same quarter of last year. 'Agriculture, Forestry & Fishing' is estimated to have grown 3.7%, which is on account of a good kharif crop. Private final consumption expenditure (PFCE), a proxy for household consumption, accounted for 63.3% in nominal GDP for the October-December quarter (Q3) compared with 65.1% in Q3FY22. Government final consumption expenditure (GFCE) has a 9% share in nominal GDP compared with 9.5% for the same period last year, while gross fixed capital formation (a proxy for infrastructure investment) was 26.8% versus 26.6%.

The CNX Nifty is currently trading at 17418.00, up by 114.05 points or 0.66% after trading in a range of 17345.25 and 17421.95. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 10.62%, Adani Ports & SEZ up by 2.89%, Hindalco up by 2.23%, Axis Bank up by 2.13% and Mahindra & Mahindra up by 2.08%. On the flip side, Power Grid Corporation down by 1.82%, Britannia Industries down by 1.42%, Cipla down by 0.46%, SBI Life Insurance down by 0.33% and Coal India down by 0.19% were the top losers.

Asian markets are trading higher; Taiwan Weighted added 98.29 points or 0.63% to 15,602.08, Hang Seng advanced 666.01 points or 3.26% to 20,451.95, Shanghai Composite strengthened 29.45 points or 0.89% to 3,309.06, Jakarta Composite gained 2.59 points or 0.04% to 6,845.83, Straits Times rose 3.43 points or 0.11% to 3,266.06 and Nikkei 225 surged 59.68 points or 0.22% to 27,505.24.