Sensex, Nifty maintain gaining momentum in early noon deals

Gaining momentum continued over the Dalal Street, with both Sensex and Nifty holding around 0.60% gains each, on the back of positive cues from other Asian markets. Sentiments remained positive, as the Union Government released 3rd installment of tax devolution to State Governments amounting to Rs 1,18,280  crore on June 12, 2023, as against normal monthly devolution of Rs 59,140 crore. One advance installment in addition to the regular installment due in June 2023 is being released to States to enable them to speed up capital spending, finance their development/ welfare related expenditure and also to make available resources for priority projects/ schemes. Besides, the Finance Ministry officials will showcase India's strong economic fundamentals and pitch for a sovereign rating upgrade in a meeting with US-based Moody's on June 16. 

On the global front, Asian markets were trading mostly in green, as retail sales in Indonesia increased for the third consecutive month in April, and retailers expect sales to grow marginally in May. The results of a survey by Bank Indonesia showed that retail sales climbed 1.5 percent year-on-year in April, slower than the 4.9 percent rise in the previous month. The growth in April was largely driven by more sales of cultural and recreational goods as well as clothing. 

The BSE Sensex is currently trading at 63096.19, up by 371.48 points or 0.59% after trading in a range of 62777.04 and 63135.98. 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 0.90%, while Small cap index was up by 0.84%.

The top gaining sectoral indices on the BSE were Telecom up by 1.89%, Realty up by 1.63%, Consumer Durables up by 1.51%, FMCG up by 1.22% and Healthcare up by 1.06%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Titan Company up by 2.23%, Asian Paints up by 1.74%, Hindustan Unilever up by 1.68%, Bajaj Finserv up by 1.56% and Tata Steel up by 1.55%. On the flip side, Kotak Mahindra Bank down by 0.97%, SBI down by 0.52%, Mahindra & Mahindra down by 0.35%, HCL Technologies down by 0.31% and Tata Motors down by 0.21% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India and the UAE look to more than double non-oil bilateral trade to $100 billion by 2030. At present, the non-oil bilateral trade stands at $48 billion. The new target was agreed upon during the first meeting of the Joint Committee of India-UAE Comprehensive Economic Partnership Agreement (CEPA). The agreement was implemented on May 1 last year.

The minister stated that the UAE is a major supplier of crude oil to India. Oil shipments account for a major share of bilateral trade between the countries. He said that businesses from both sides were encouraged to further expand this trade and smooth implementation of the CEPA will help in this. He also said ‘we have also agreed to set up an India-UAE CEPA Council that will serve as a vehicle for both governments and the export-oriented private sector to facilitate the implementation of CEPA by creating awareness and building partnerships, and organising business events in both countries’. He added that this council would focus on areas such as MSMEs, startups, women entrepreneurs, services sector participants.

Talking on the bilateral trade, he said the two leaders have asked businesses to do more trade in the petroleum sector also. He also said India imports a lot of petroleum products and the UAE is its principal supplier and the UAE is also a large consumer of refined petroleum products. They are also large traders in refined products going beyond their own capacity. He said ‘So I requested the UAE to encourage their companies to look at sourcing refined products more and more from India’.

The CNX Nifty is currently trading at 18708.05, up by 106.55 points or 0.57% after trading in a range of 18631.80 and 18718.40. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 2.15%, Tata Consumer Products up by 2.10%, Asian Paints up by 1.73%, Cipla up by 1.59% and Hindustan Unilever up by 1.58%. On the flip side, Kotak Mahindra Bank down by 1.11%, SBI down by 0.49%, Adani Ports & SEZ down by 0.33%, Mahindra & Mahindra down by 0.32% and HCL Tech. down by 0.32% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 584.65 points or 1.77% to 33,018.65, Taiwan Weighted added 261.23 points or 1.52% to 17,216.60, Hang Seng advanced 145.97 points or 0.75% to 19,550.28, KOSPI increased 8.6 points or 0.33% to 2,637.95 and Shanghai Composite strengthened 4.4 points or 0.14% to 3,233.23, while Jakarta Composite plunged 1.49 points or 0.02% to 6,720.88 and Straits Times fell 5.79 points or 0.18% to 3,190.28.