Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, in line with firm trends in the global markets and heavy buying in index major Reliance Industries. Fresh foreign fund inflows also added to the positive momentum in the equity market. Foreign Portfolio Investors (FPIs) were net buyers on Wednesday as they bought equities worth Rs 1,245.39 crore, according to exchange data. Sentiments remained up-beat as Chief Economic Advisor (CEA) V Anantha Nageswaran expressed optimism over India’s economic growth and said that the country’s economy is likely to grow at the rate of 6.5 per cent in the coming decade on the back of the turnaround in financial and investment cycle. On the global front, Asian markets are trading mostly in green as underlying sentiment was supported by easing worries about the global banking system and expectations that the Federal Reserve is nearing the end of its aggressive streak of rate hikes.

The BSE Sensex is currently trading at 58591.70, up by 631.61 points or 1.09% after trading in a range of 58273.86 and 58709.17. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 1.40%.

The top gaining sectoral indices on the BSE were Utilities up by 1.58%, Energy up by 1.54%, Telecom up by 1.48%, Realty up by 1.36% and PSU up by 1.36%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Reliance Industries up by 3.23%, ICICI Bank up by 2.77%, Tata Motors up by 2.32%, Nestle up by 1.95% and HCL Technologies up by 1.70%. On the flip side, Sun Pharma down by 0.56%, ITC down by 0.42%, Asian Paints down by 0.40%, Bajaj Finance down by 0.38% and Hindustan Unilever down by 0.13% were the top losers.

Meanwhile, the World Bank in its latest report ‘Falling Long-Term Growth Prospects: Trends, Expectations, and Policies’ has said that India’s potential growth could benefit from accelerated implementation of an already ambitious reform agenda. The report said addressing the aftermath of financial sector distress in India could unlock significant growth. He said India has a less developed financial system than many of its peers, with a heavy state presence. To improve the sector’s efficiency and depth, reforms could be undertaken to further rationalise the role of public sector banks, ensure a level-playing field in the banking sector, and promote the development of capital markets.

On India’s infrastructure deficit, it said reforms suggested by the Task Force on the National Infrastructure Pipeline should be implemented, including improving project preparation processes, enhancing the capacity and participation of the private sector, improving contract enforcement and dispute resolution, and improving sources of financing. He stated said investment growth in India slowed from an annual average of 10.5 per cent in 2000-10 to 5.7 per cent in 2011-21. In India, structural bottlenecks, including unreliable power, poor road and rail networks, and arduous administrative requirements on business, have been barriers to investment over the past decade, along with banking sector weaknesses that have constrained investment finance.

It said warns that the global economy faces the prospect of a 'lost decade' on account of nearly all drivers of economic progress in recent history fading. It mentioned the global economy’s ‘speed limit’ - the maximum rate of long-term growth without causing inflation - is set to decline to its lowest point in three decades by 2030. It stated in the decade before COVID-19, a global slowdown in productivity - which is essential for income growth and higher wages - was already adding to concerns about long-term economic prospects.

The CNX Nifty is currently trading at 17256.25, up by 175.55 points or 1.03% after trading in a range of 17204.65 and 17289.75. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.28%, ICICI Bank up by 2.78%, Hindalco up by 2.56%, Tata Motors up by 2.27% and Nestle up by 2.25%. On the flip side, Sun Pharma down by 0.78%, Apollo Hospital down by 0.76%, Asian Paints down by 0.48%, ITC down by 0.48% and Bajaj Auto down by 0.34% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 27.73 points or 0.17% to 15,877.16, Hang Seng advanced 171 points or 0.83% to 20,480.13, Shanghai Composite strengthened 7.06 points or 0.22% to 3,268.31, KOSPI increased 22.71 points or 0.92% to 2,475.87, Straits Times rose 6.61 points or 0.2% to 3,263.79 and Nikkei 225 surged 248.1 points or 0.89% to 28,031.03.

On the flip side, Jakarta Composite plunged 1.09 points or 0.02% to 6,807.86.