Sensex, Nifty trade higher amid strong manufacturing PMI

Positive macroeconomics data helped Indian equity benchmarks to keep their heads above water in early afternoon session. India's manufacturing sector activity improved further in the month of May, hitting 31-month high, with factory orders rising at the fastest pace since January 2021 and companies stepping up input purchasing owing to stock-replenishment efforts. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.7 in May from 57.2 in April. Besides, beating street estimates, India’s economic growth measured in terms of Gross Domestic Product (GDP) surged to 6.1 per cent in the March quarter of fiscal year 2022-23 (Q4FY23). However, gains were limited, as the Reserve Bank of India’s data report showed that growth of bank credit to industry decelerated to 7 per cent in April 2023 as compared with 8 per cent in corresponding month in the previous year. 

On the global front, Asian markets were trading in green, after China's manufacturing activity expanded for the first time in three months in May as strong new orders boosted production. The survey results from S&P Global revealed that the Caixin manufacturing Purchasing Managers' Index picked up to 50.9 in May from 49.5 in April. The reading was forecast to remain unchanged at 49.5.

The BSE Sensex is currently trading at 62691.35, up by 69.11 points or 0.11% after trading in a range of 62526.18 and 62762.41. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.31%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Realty up by 1.23%, IT up by 0.71%, Healthcare up by 0.67%, Utilities up by 0.64% and Consumer Durables up by 0.50%, while Metal down by 0.83%, Energy down by 0.42%, Telecom down by 0.30%, Bankex down by 0.20% and TECK down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.84%, TCS up by 1.19%, Mahindra & Mahindra up by 1.05%, Axis Bank up by 0.97% and Asian Paints up by 0.86%. On the flip side, Bharti Airtel down by 3.84%, Kotak Mahindra Bank down by 2.89%, Maruti Suzuki down by 1.01%, ITC down by 0.90% and HCL Technologies down by 0.46% were the top losers.

Meanwhile, the Reserve Bank data (RBI) has said that growth of bank credit to industry decelerated to 7 per cent in April 2023 as compared with 8 per cent in corresponding month in the previous year. It also said personal loans growth registered a growth of 19.4 per cent (y-o-y) in April 2023 as against 14.4 per cent a year ago, mainly driven by housing and vehicle loans. Loan to agriculture and allied activities improved to 16.7 per cent (y-o-y) in April 2023 from 10.6 per cent a year ago.

RBI said size-wise, credit to large industry rose by 5.3 per cent as compared with 1.3 per cent a year ago. Credit growth of medium industries was 19.1 per cent as against 53.7 per cent last year. Credit to micro and small industries registered a growth of 9.7 per cent in April 2023 (29.8 per cent a year ago). 

It further said among major industries, credit growth (y-o-y) to 'basic metal & metal products' and 'petroleum, coal products & nuclear fuels' accelerated in April 2023 as compared with the corresponding month of the previous year. Credit growth to 'chemicals & chemical products', 'food processing', 'infrastructure' and 'textiles' decelerated. Bank credit growth to the services sector accelerated to 21.6 per cent annually in April 2023 from 11.2 per cent a year ago, primarily due to the improved credit offtake to non-banking financial companies and trade.

The CNX Nifty is currently trading at 18555.10, up by 20.70 points or 0.11% after trading in a range of 18514.40 and 18580.30. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 3.88%, Divi's Laboratories up by 3.00%, Bajaj Auto up by 1.79%, Hindustan Unilever up by 1.61% and Hero MotoCorp up by 1.47%. On the flip side, Coal India down by 4.89%, Kotak Mahindra Bank down by 3.89%, Bharti Airtel down by 2.92%, Maruti Suzuki down by 1.13% and Britannia Industries down by 0.98% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 260.13 points or 0.84% to 31,148.01, Hang Seng advanced 18.27 points or 0.1% to 18,252.54, Straits Times rose 3.02 points or 0.1% to 3,161.82 and Shanghai Composite strengthened 0.19 points or 0.01% to 3,204.75, while KOSPI dropped 7.95 points or 0.31% to 2,569.17 and Taiwan Weighted lost 66.31 points or 0.4% to 16,512.65.