Sensex, Nifty manage to keep heads above neutral lines

In a highly volatile session, Indian markets managed to keep their heads above neutral lines in early afternoon deals, with both Sensex and Nifty trading marginally higher, on the back of positive cues from other Asian markets along with buying at FMCG and Auto counters. Domestic sentiments were positive, as Reserve Bank of India (RBI) said that inflation trajectory expected to move down to 5.2 per cent this fiscal from the average level of 6.7 per cent recorded last year. Besides, it said that CAD expected to remain moderate on back of robust services exports, salubrious impact of moderation in commodity prices of imports. 

On the global front, Asian markets were trading mostly in green, despite Hong Kong's exports continued to decline in April, and at a faster pace. The data from the Census and Statistics Department showed that exports of goods plunged 13.0 percent year-over-year in April, much faster than the 1.5 percent decline in March. Exports have been falling since May 2002.

Back home, on the sectoral front, energy producing company’s stocks were in watch, as in a big boost to off-shore wind energy projects, the Government given complete waiver of ISTS charges for 25 years to projects commissioned on or before December 31, 2032. Besides, the ISTS waiver of Green Hydrogen and Green Ammonia projects extended from June 30, 2025 to December 31, 2030.

The BSE Sensex is currently trading at 62866.25, up by 19.87 points or 0.03% after trading in a range of 62737.40 and 63030.63. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.14%, while Small cap index was up by 0.23%.

The top gaining sectoral indices on the BSE were FMCG up by 0.29%, Auto up by 0.15%, Healthcare up by 0.08%, IT up by 0.05% and TECK up by 0.03%, while Metal down by 0.93%, Telecom down by 0.37%, Power down by 0.24%, Utilities down by 0.23% and Consumer Durables down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.10%, HCL Technologies up by 1.05%, Wipro up by 0.85%, Bajaj Finance up by 0.54% and Kotak Mahindra Bank up by 0.54%. On the flip side, Tech Mahindra down by 0.99%, Sun Pharma down by 0.75%, Nestle down by 0.71%, Tata Steel down by 0.55% and Larsen & Toubro down by 0.47% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its annual report has said that India's growth momentum is likely to be sustained in 2023-24 in an atmosphere of easing inflationary pressures on the back of sound macroeconomic policies, softer commodity prices, a robust financial sector, a healthy corporate sector, continued fiscal policy thrust on quality of government expenditure, and new growth opportunities stemming from global realignment of supply chains.

However, report said slowing global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility following new stress events in the global financial system could pose downside risks to growth. It said its monetary policy remains focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

It further said with a stable exchange rate and a normal monsoon -- unless an El Nino event strikes -- the inflation trajectory is expected to move down over 2023-24, with headline inflation edging down to 5.2 per cent from the average level of 6.7 per cent recorded last year. In the external sector, it said the current account deficit (CAD) is expected to remain moderate, drawing strength from robust services exports and the salubrious impact of moderation in commodity prices of imports. With global uncertainties persisting, it said foreign portfolio investment (FPI) flows may remain volatile.

The CNX Nifty is currently trading at 18611.10, up by 12.45 points or 0.07% after trading in a range of 18575.50 and 18662.45. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 1.13%, HCL Technologies up by 1.06%, JSW Steel up by 1.02%, Ultratech Cement up by 1.01% and Wipro up by 0.85%. On the flip side, Hindalco down by 1.31%, Coal India down by 0.98%, HDFC Life Insurance down by 0.97%, Tech Mahindra down by 0.97% and Dr Reddy's Laboratories down by 0.91% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 94.62 points or 0.3% to 31,328.16, KOSPI increased 26.71 points or 1.03% to 2,585.52, Hang Seng advanced 3.75 points or 0.02% to 18,554.86, Straits Times rose 1.49 points or 0.05% to 3,196.71 and Shanghai Composite strengthened 0.3 points or 0.01% to 3,221.75, while Jakarta Composite plunged 5.85 points or 0.09% to 6,675.25 and Taiwan Weighted lost 13.56 points or  0.08% to 16,622.74.