Benchmarks continue to trade higher in late morning deals

Indian equity benchmarks continued to trade higher in late morning deals, amid fresh foreign fund inflows and continuous buying in Utilities, Oil & Gas and Power counters. Foreign Institutional Investors (FIIs) turned buyers on Monday as they bought equities worth Rs 922.89 crore after a day's breather, according to exchange data. Sentiments remained positive with a Reserve Bank of India (RBI) article stating that India’s growth in the April-June quarter is likely to be driven by private consumption, supported by reviving rural demand, and renewed buoyancy in manufacturing. Some support also came as the federal finance ministry in its monthly economic review said that domestic demand will aid India’s economy and help lay the foundation for the capex cycle, despite global headwinds that pose a downside risk to growth. On the global front, Asian markets are trading mostly in red as traders remain cautious and reluctant to make significant moves while they await additional news on US debt ceiling negotiations after talks broke down last week.  

The BSE Sensex is currently trading at 62213.98, up by 250.30 points or 0.40% after trading in a range of 62061.24 and 62227.72. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.46%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Utilities up by 1.47%, Oil & Gas up by 1.31%, Power up by 1.26%, Energy up by 0.95% and IT up by 0.72%, while Capital Goods down by 0.24% and Consumer Durables down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.12%, Indusind Bank up by 1.45%, Tata Motors up by 1.23%, Infosys up by 1.11% and ITC up by 0.91%. On the flip side, Kotak Mahindra Bank down by 0.87%, Larsen & Toubro down by 0.57%, Titan Company down by 0.39%, Bharti Airtel down by 0.35% and Mahindra & Mahindra down by 0.25% were the top losers.

Meanwhile, with a view to identify and mitigate risks at an early stage, Reserve Bank of India (RBI) Governor Shaktikanta Das has asked public sector banks to further strengthen their governance and risk management. Das also emphasised the need for banks to ensure continued financial and operational resilience. 

The central bank in a statement said Das acknowledged the role played by the banks in supporting the economy and maintaining resilience along with improved financial performance in the face of several adverse shocks in recent times. 

It stated ‘He (Das) exhorted the directors of banks to further strengthen the governance and assurance functions (risk management, compliance and internal audit) so that the banks are able to identify and mitigate risks at an early stage.’

The CNX Nifty is currently trading at 18402.00, up by 87.60 points or 0.48% after trading in a range of 18349.75 and 18410.50. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 12.43%, Divi's Lab up by 3.77%, Adani Ports &SEZ up by 2.25%, Bajaj Finserv up by 2.17% and BPCL up by 2.16%. On the flip side, Grasim Industries down by 1.42%, Kotak Mahindra Bank down by 0.96%, HDFC Life Insurance down by 0.66%, Larsen & Toubro down by 0.56% and Hero MotoCorp down by 0.49% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 135.21 points or 0.43% to 30,951.61, Taiwan Weighted lost 13.1 points or 0.08% to 16,167.79, Hang Seng declined 133.2 points or 0.68% to 19,544.97 and Shanghai Composite weakened 27.91 points or 0.85% to 3,268.56.

On the flip side, KOSPI increased 10.33 points or 0.4% to 2,567.41, Jakarta Composite gained 25.17 points or 0.37% to 6,754.82 and Straits Times rose 8.82 points or 0.27% to 3,219.91.