Bourses add more points in late afternoon session

Indian markets enlarged their gains to touch day’s high points in late afternoon session. Traders took support after India Meteorological Department (IMD) said that India is likely to receive normal monsoon rains in 2023 despite the likely emergence of the EI Nino weather phenomenon. Besides, support also came in as SBI Research in its latest report ‘Ecowrap’ has said that the country’s economy is on track to surpass 7 per cent growth rate in Fiscal Year 2023 (FY23) with manufacturing being the key driver. On the global front, Asian markets were trading mixed after reports suggested that U.S. lawmakers are inching closer to an agreement that would raise the debt limit for about two years and cap federal spending at the same level as fiscal 2023 for two years. European markets were trading mostly in green on gains in mining and technology stocks although the main benchmarks were set for steep weekly losses on growing concerns over a slowing global economy and the debt ceiling talks in the United States.

The BSE Sensex is currently trading at 62496.90, up by 624.28 points or 1.01% after trading in a range of 61911.61 and 62501.14. There were 27 stocks advancing against 2 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading in green; the BSE Mid cap index was up by 0.68%, while Small cap index up by 0.50%.

The top gaining sectoral indices on the BSE were IT up by 1.22%, FMCG up by 1.20%, Metal up by 1.09%, TECK up by 1.06%, Consumer Durables up by 0.89%, while Utilities down by 0.38% were the only losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.84%, HCL Tech up by 1.91%, Hindustan Unilever up by 1.78%, Ultratech Cement up by 1.77% and Wipro up by 1.66%. On the flip side, Bharti Airtel down by 0.53% and Power Grid down by 0.36% were the top losers.

Meanwhile, expressing optimism over the India’s economic situation, the SBI Research in its latest report ‘Ecowrap’ has said that the country’s economy is on track to surpass 7 per cent growth rate in Fiscal Year 2023 (FY23) with manufacturing being the key driver. As per the report, India's growth in the fourth quarter of FY23 is likely to be 5.5 per cent, which would lead to the country's growth for FY23 at 7.1 per cent. According to Ecowrap, the variegated patterns of growth emerging across the globe is bringing forth unprecedented challenges before policymakers, regulators and economists in assessing the real rates of projected growth, not only during the current year -- 2023 -- but continuing through 2024 and 2025 as the inflation trajectory management for central banks has been elongated after the surprising turn of events last year. 

Amidst this global hullabaloo, the SBI Research report said India is expected to continue its showdown in pursuing a different pathway of zeroing in on drivers of growth, looking for a renewed surge in resilient manufacturing while supporting services sector to embrace enhanced efficiency. Locally, domestic consumption and investment stand to benefit from stronger prospects for agricultural and allied activities, strengthening business and consumer confidence, and strong credit growth while supply responses and cost conditions are poised to improve as inflationary pressure is easing.

Besides, it said India Inc continues to front lead the economic turnaround while embracing better operational and financial efficiency. It added in Q4FY23, around 1,700 listed entities reported top line growth of 12, while PAT grew by around 19 per cent as compared to the same period previous year. It also said the same set of companies reported earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of around 23 per cent in Q4FY23.

SBI research report said green shoots are also emerging on foreign capital inflows in capital markets with year-to date (YTD) foreign institutional investors (FIIs) inflows in FY24 touching $6 billion, a reversal of trend from 2022. It also added that start-ups financing has been hit due to banking turmoil in the US, in particular failure of niche banks though it also offers a gearing up pedestal to domestic FIs to ring fence the financial needs of these changelings internally to ensure the sweet spot enjoyed by India grows in a disruptive and disproportionate manner.

The CNX Nifty is currently trading at 18489.80, up by 168.65 points or 0.92% after trading in a range of 18333.15 and 18501.55. There were 44 stocks advancing against 5 stocks declining on the index, while 1 stock remained unchanged. 

The top gainers on Nifty were Reliance Industries up by 2.71%, Hindalco up by 2.35%, Divi's Lab up by 2.08%, HCL Tech up by 1.91% and SBI Life up by 1.80%. On the flip side, ONGC down by 1.36%, Grasim Industries down by 1.22%, Bharti Airtel down by 0.47%, Power Grid down by 0.32% and Bajaj Auto down by 0.19% were the top losers.

Asian markets were trading mixed, Taiwan Weighted added 213.05 points or 1.29% to 16,505.05, Nikkei 225 surged 115.18 points or 0.37% to 30,916.31, Shanghai Composite strengthened 11.24 points or 0.35% to 3,212.50 and KOSPI was up by 4.12 points or 0.16% to 2,558.81. On the flip side, Straits Times fell 0.32 points or 0.01% to 3,207.40 and Jakarta Composite plunged 26.17 points or 0.39% to 6,678.06.

European markets were trading mostly in green, UK’s FTSE 100 increased 4.31 points or 0.06% to 7,575.18 and France’s CAC was up by 3.1 points or 0.04% to 7,232.37. On the flip side, Germany’s DAX was down by 7.24 points or 0.05% to 15,786.56.