Markets remain in green in late morning deals

Domestic equity markets remained in green in late morning deals despite mixed global cues. Meanwhile, broader markets exhibited strength as they outperformed benchmark indices. BSE Midcap rose 0.84% and BSE Smallcap indices surged 1.03%. Traders got support as the World Bank said India would remain the fastest-growing economy in terms of both aggregate and per capita gross domestic product (GDP) among the largest emerging market and developing economies in FY24. The sentiments were further supported by Indian rupee appreciating 10 paise to 82.50 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading mixed as traders remained cautious and apprehensive over the outlook for interest rates as they continued to look ahead to next week's US Federal Reserve monetary policy meeting. Back home, all the sectoral indices on the BSE were trading in green led by Utilities, Healthcare, Capital Goods, Telecom and Realty.

The BSE Sensex is currently trading at 62909.57, up by 116.69 points or 0.19% after trading in a range of 62841.95 and 63027.98. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.84%, while Small cap index up by 1.03%.

The top gaining sectoral indices on the BSE were Utilities up by 1.50%, Healthcare up by 1.02%, Capital Goods up by 1.00%, Telecom up by 0.91% and Realty up by 0.90%, while there were no losers. 

The top gainers on the Sensex were Nestle up by 2.29%, Tata Motors up by 1.55%, Power Grid up by 1.40%, Axis Bank up by 1.08% and Hindustan Unilever up by 1.04%. On the flip side, ICICI Bank down by 0.75%, Kotak Mahindra Bank down by 0.71%, Mahindra & Mahindra down by 0.52%, Bajaj Finance down by 0.16% and Tech Mahindra down by 0.09% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that India Inc. have witnessed sequential expansion in margins in Q4 FY2023, with a YoY increase of 11.4%, while the sequential revenue growth was relatively moderate at 5.2%. On a YoY basis, almost all sectors reported revenue expansion in Q4 FY2023, with aviation, hotels, ports and gems & jewellery leading the trend. This was supported by the easing of commodity prices which continued to positively impact consumer sentiments. 

According to the report, in terms of sequential performance, sectors such as consumer durables, construction, port and gems & jewellery reported significant growth in revenues due to successive price hikes and strong demand witnessed in some sectors. On the other hand, it said few sectors like fertilizers and retail witnessed sequential decline in revenues during the quarter due to decline in realisations, following reduction in input costs.

The interest coverage ratio of ICRA’s sample, adjusted for sectors with relatively low debt levels (IT, FMCG and pharma), witnessed a YoY moderation in Q4 FY2023 to 4.7 times from 5.7 times, mainly on account of lower earnings in select sectors compared to historic trends and higher interest rates on the back of rate hikes by the Monetary Policy Committee (MPC). Other factors contributing to the same included, India Inc’s increased reliance on external borrowings due to higher capital expenditure undertaken for future expansion and higher inventory stocking to mitigate supply chain uncertainties. However, India Inc. showed some improvement in its interest coverage ratio on a sequential basis in Q4 FY2023, aided by the sequential improvement in earnings during the quarter.

The CNX Nifty is currently trading at 18661.10, up by 62.10 points or 0.33% after trading in a range of 18636.00 and 18676.05. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Britannia up by 3.31%, BPCL up by 2.60%, Tata Consumer up by 2.48%, Nestle up by 2.25% and HDFC Life Insurance up by 2.08%. On the flip side, ICICI Bank down by 0.72%, Mahindra & Mahindra down by 0.66%, Kotak Mahindra Bank down by 0.58%, Bajaj Finance down by 0.17% and Tech Mahindra down by 0.08% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 137.33 points or 0.81% to 16,898.99, Hang Seng advanced 218.18 points or 1.14% to 19,317.46, Shanghai Composite strengthened 6.97 points or 0.22% to 3,202.31 and KOSPI increased 1.12 points or 0.04% to 2,616.53. However, Jakarta Composite plunged 26.78 points or 0.41% to 6,592.14, Straits Times fell 12.35 points or 0.39% to 3,177.76 and Nikkei 225 slipped 522.31 points or 1.61% to 31,984.47.