Bourses maintain gains in late afternoon session

Indian equity markets continued to trade in green in late afternoon session.  IT, metal and banking counters were on the priority list of the buyers. The broader indices, the BSE Mid cap index and Small cap index were too trading in green. Traders continued to take support 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. On the global front, Asian markets were trading mixed after more talks in Washington on government debt ended with no deal to avoid a potentially jarring default. European markets were trading mostly in red on weak updates from Julius Baer and Vivendi, while resilient euro zone business growth in May bolstered the chances of an interest-rate hike by the European Central Bank.

The BSE Sensex is currently trading at 62163.88, up by 200.20 points or 0.32% after trading in a range of 62061.24 and 62245.19. There were 19 stocks advancing against 10 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading in green; the BSE Mid cap index gained 0.48%, while Small cap index was up by 0.31%.

The top gaining sectoral indices on the BSE were Utilities up by 1.47%, Power up by 1.28%, Oil & Gas up by 1.09%, Telecom up by 0.78% and Metal was up by 0.77%, while Capital Goods down by 0.52%, Industrials down by 0.23% and Consumer Durables was down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.01%, Tata Motors up by 1.35%, ITC up by 1.28%, Asian Paints up by 1.24% and Indusind Bank up by 1.16%. On the flip side, Kotak Mahindra Bank down by 0.84%, Larsen & Toubro down by 0.74%, Titan Company down by 0.67%, Sun Pharma down by 0.51% and Tech Mahindra down by 0.40% were the top losers.

Meanwhile, the finance ministry in its report has said that there are downside risks to growth and upside risks to inflation, partly channelled through the external sector and partially originating from weather uncertainties. It said consumption has shown steady and broad-based growth, while investment in capacity creation and real estate is finding traction.

Observing that the FY24 for the Indian economy opened on the back of strong activity witnessed in the last quarter of the previous fiscal, the report said GST collections in April, which marked the commercial activity of the last month, underwent a level shift pushed up by the widening of the tax base and heightened economic activity. Index of Industrial Production (IIP) and Eight Core Industries Index (ECI) averaged steady growth in Q4 of FY23, adding to the capacity utilization hovering close to 75 percent two quarters earlier. Buoyed by sustainable growth in activity and increasing capacity utilization, it said the corporates have started investing in new capacity, adding that the production of capital goods and construction/infrastructure goods, as estimated in the IIP, grew steadily in Q4 of FY23, along with imports of capital goods.

Like the manufacturing and services sector, it said the prospects for the agriculture sector also appear to be bright. The forecast of a normal monsoon, surplus water reservoir levels, adequate availability of seeds and fertilizers, and robust tractor sales augurs well for a healthy kharif sowing season starting in June 2023. It noted that despite unseasonal rains, smooth public procurement of wheat augers well for food security, and rural demand is also gaining momentum, as evident in sturdy sales of fast-moving consumer goods (FMCG) companies during Q4 of FY23 and sustained double-digit growth of two-three-wheelers sales in April. Going forward, it said, healthy prospects for the kharif season, higher minimum support prices (MSP) for crops, and increased budgetary spending by the government are likely to enhance farmers’ income and boost the rural economy.

The CNX Nifty is currently trading at 18400.55, up by 86.15 points or 0.47% after trading in a range of 18349.75 and 18419.75. There were 35 stocks advancing against 14 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Adani Enterprises up by 16.65%, Divi's up by 4.14%, Adani Ports up by 2.48%, Bajaj Finserv up by 1.96% and BPCL up by 1.60%. On the flip side, Grasim Industries down by 1.15%, Apollo Hospital down by 0.93%, Kotak Mahindra Bank down by 0.76%, Larsen & Toubro down by 0.71% and Titan Company down by 0.63% were the top losers.

Asian markets were trading mixed, Jakarta Composite gained 15.75 points or 0.23% to 6,745.40, KOSPI increased 10.47 points or 0.41% to 2,567.55, Straits Times rose 8.67 points or 0.27% to 3,219.76 and Taiwan Weighted was up by 7.14 points or 0.04% to 16,188.03. On the flip side, Shanghai Composite weakened 50.23 points or 1.55% to 3,246.24, Nikkei 225 slipped 129.05 points or 0.42% to 30,957.77 and Hang Seng was down by 246.92 points or 1.27% to 19,431.25.

European markets were trading mostly in red, France’s CAC fell 60.16 points or 0.81% to 7,418.00 and Germany’s DAX was down by 22.07 points or 0.14% to 16,201.92. On the flip side, UK’s FTSE 100 was up by 5.37 points or 0.07% to 7,776.36.