Markets cut some gains in late afternoon session

Indian equity markets trimmed some of their gains in late afternoon session, but continued to trade in green. Buying in Metal and banking counters helped the markets to trade in positive territory. Traders found support after Reserve Bank of India Governor Shaktikanta Das has said the Indian banking sector ‘stands out as strong and stable’ in the face of extreme stress originating from the Covid pandemic, the continuing war in Europe and the banking sector crisis in certain advanced economies. Meanwhile, a private report said that the RBI may cut key benchmark policy rate in the fourth quarter of the current calendar year as a mix of factors will allow the central bank to shift focus and adopt a more accommodative policy stance sooner. On the global front, Asian markets were trading mixed, while European markets were trading higher after U.S. lawmakers reached a tentative debt limit deal to avert a fast-approaching default in early June.

The BSE Sensex is currently trading at 62,859.34, up by 357.65 points or 0.57% after trading in a range of 62801.54 and 63026.00. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.38%, while Small cap index was up by 0.38%.

The top gaining sectoral indices on the BSE were Metal up by 1.49%, Consumer Durables up by 1.07%, Bankex up by 0.78%, Auto up by 0.76% and Realty was up by 0.74%, while Oil & Gas down by 0.73%, IT down by 0.23%, TECK down by 0.16%, Healthcare down by 0.09% and Energy was down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.06%, Indusind Bank up by 1.93%, Tata Steel up by 1.88%, SBI up by 1.65% and Ultratech Cement up by 1.63%. On the flip side, Power Grid down by 0.97%, HCL Tech down by 0.84%, Sun Pharma down by 0.69%, Maruti Suzuki down by 0.61% and TCS down by 0.38% were the top losers.

Meanwhile, think tank Global Trade Research Initiative (GTRI) in its latest report has said that share of India's exports in the world trade in sectors such as pharma, gems and jewellery, leather, and footwear declined in 2022 as compared to 2015. India's global market share in sectors like apparel, leather, shoes, and marine products has been decreasing, primarily due to concerns over quality rather than pricing issues. However, there is an increase in the share of electronics, machinery, petroleum, auto parts, iron and steel, and aluminium products' exports during the period.  

The report said that the key sectors that witnessed a higher share in global trade are electronics, telecom, mobile phones, and electrical equipment, as well as machinery. This is noteworthy as these product groups hold substantial importance in world trade, which exceeds $6 trillion. India's historically low share in these sectors is gradually but decisively improving.

According to the report, in 2022, India's share in global merchandise trade stood at 1.8 per cent. However, its share in machinery and electronics was a mere 0.75 per cent and 0.4 per cent, respectively in 2015. Over the course of seven years, there has been a marginal yet significant improvement in these shares. It also stated that quality issues are not limited to pharmaceuticals but also affect Indian aquaculture products, such as shrimp and prawns.

The CNX Nifty is currently trading at 18,602.00, up by 102.65 points or 0.55% after trading in a range of 18584.45 and 18641.20. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 4.01%, Coal India up by 2.17%, Tata Steel up by 1.93%, SBI Life up by 1.90% and Indusind Bank up by 1.78%. On the flip side, ONGC down by 2.56%, Divi's Lab down by 1.02%, Power Grid down by 0.99%, HCL Tech down by 0.89% and Maruti Suzuki down by 0.71% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 317.23 points or 1.02% to 31,233.54, Taiwan Weighted added 131.25 points or 0.79% to 16,636.30, Shanghai Composite strengthened 8.95 points or 0.28% to 3,221.45 and KOSPI was up by 4.12 points or 0.16% to 2,558.81. On the flip side, Straits Times fell 11.82 points or 0.37% to 3,195.57, Jakarta Composite plunged 41.19 points or 0.62% to 6,645.81 and Hang Seng was down by 195.81 points or 1.06% to 18,551.11.

European markets were trading higher, UK’s FTSE 100 increased 56.33 points or 0.74% to 7,627.20, France’s CAC rose 8.74 points or 0.12% to 7,327.92 and Germany’s DAX was up by 36.79 points or 0.23% to 16,020.76.