Domestic markets trade flat in late morning deals

Domestic equity markets were trading flat in late morning deals as investors looked ahead to the latest monetary policy decision from the U.S. Federal Reserve. Markets digested the latest U.S. inflation data, which showed price pressures slowed again in May. Meanwhile, investors also remained on sidelines ahead of India’s WPI or wholesale inflation for May to be out later in the day. However, broader indices on the BSE were trading higher. Sentiments got some support as Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh said the production-linked incentive (PLI) schemes have led to an increase in production, employment generation, and exports of the country. Metal stocks traded higher after the central bank of top metals consumer China lowered a short-term lending rate for the first time in 10 months to prop up its post-pandemic recovery.

On the global front, Asian markets were trading mostly higher following positive cues from US markets overnight. On the sectoral front, traders were seen pilling up position in Metal, Telecom, Utilities, Oil & Gas and Power, while selling was witnessed in IT, TECK, Bankex, Realty and Capital Goods. In the stock specific development, Vodafone Idea rose amid reports that promoters are planning to infuse funds in the debt laden telecom company. 

The BSE Sensex is currently trading at 63135.28, down by 7.88 points or 0.01% after trading in a range of 63013.51 and 63242.72. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.15%, while Small cap index up by 0.49%.

The top gaining sectoral indices on the BSE were Metal up by 1.38%, Telecom up by 0.93%, Utilities up by 0.66%, Oil & Gas up by 0.63% and Power up by 0.57%, while IT down by 0.43%, TECK down by 0.39%, Bankex down by 0.32%, Realty down by 0.12% and Capital Goods down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.85%, NTPC up by 1.35%, Power Grid up by 0.95%, Tata Motors up by 0.87% and Reliance Industries up by 0.66%. On the flip side, Bharti Airtel down by 1.07%, Bajaj Finserv down by 0.98%, Bajaj Finance down by 0.83%, Axis Bank down by 0.70% and Indusind Bank down by 0.66% were the top losers.

Meanwhile, Secretary in the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh has said that the production-linked incentive (PLI) schemes have led to an increase in production, employment generation, and exports of the country. He said due to the schemes, there was an increase of 76 per cent in foreign direct investment in the manufacturing sector in 2021-22 ($21.34 billion) compared to 2020-21 ($12.09 billion).

Singh stated that the schemes were announced for 14 sectors with an incentive outlay of Rs 1.97 lakh crore (about $26 billion) to strengthen their production capabilities and help create global champions. Sectors which witnessed increase in FDI inflows from 2021-22 to 2022-23 are pharmaceuticals, food processing, and medical appliances. He noted that as of date, 733 applications have been approved in 14 sectors with expected investment of Rs 3.65 lakh crore. Actual investment of Rs 62,500 crore has been realized till March 2023 which has resulted in incremental production/ sales of over Rs 6.75 lakh crore and employment generation of around 3,25,000.

He further said that the scheme has led to major smartphone companies shifting their suppliers to India. He said ‘We have been able to increase the value addition in mobile manufacturing to 20 per cent within a period of 3 years whereas countries like Vietnam achieved 18 per cent value addition over 15 years and China achieved 49 per cent value addition in over 25 years’.

The CNX Nifty is currently trading at 18726.60, up by 10.45 points or 0.06% after trading in a range of 18690.00 and 18753.80. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Tata Consumer up by 4.01%, JSW Steel up by 2.29%, Tata Steel up by 1.84%, NTPC up by 1.54% and Power Grid up by 1.03%. On the flip side, Bharti Airtel down by 1.16%, Bajaj Finserv down by 0.97%, Bajaj Finance down by 0.93%, Infosys down by 0.66% and Axis Bank down by 0.66% were the top losers.

Asian markets were trading mostly higher; Taiwan Weighted added 25.6 points or 0.15% to 17,242.20, Shanghai Composite strengthened 1.08 points or 0.03% to 3,234.75, Straits Times rose 16.15 points or 0.51% to 3,205.55 and Nikkei 225 surged 516.1 points or 1.56% to 33,534.75. However, Hang Seng declined 92.69 points or 0.47% to 19,428.73, KOSPI dropped 20.62 points or 0.78% to 2,617.33 and Jakarta Composite plunged 36.31 points or 0.54% to 6,682.70.