Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Capital Goods, Industrials and Banking stocks. Sentiments remained positive with Chief Economic Advisor (CEA) V Anantha Nageswaran’s statement that the average capital investment in many sectors is growing at more than 20 per cent, and there are multiple indicators pointing to a momentum in the economy. Also, he exuded confidence that the finance ministry's target of narrowing the fiscal deficit to 5.9 in the current financial year and to 4.5 percent in 2025-26 would be achieved. Some support also came as Commerce and Industry Minister Piyush Goyal stating that Indian companies are looking at business opportunities in Africa as the continent holds huge potential to boost trade and investments. On the global front, Asian markets are trading mostly in green as resilient US economic data stoked expectations that the Federal Reserve is near the end of its rate-hike campaign, with investor focus switching to the Bank of Japan's policy meeting.

The BSE Sensex is currently trading at 63251.71, up by 334.08 points or 0.53% after trading in a range of 62957.17 and 63264.54. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.57%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.92%, Industrials up by 0.88%, Bankex up by 0.64%, Consumer Durables up by 0.64% and FMCG up by 0.55%, while TECK down by 0.15% and IT down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.50%, HDFC Bank up by 1.02%, Reliance Industries up by 1.00%, ITC up by 0.96% and HDFC up by 0.96%. On the flip side, TCS down by 0.83%, Wipro down by 0.68%, Power Grid Corporation down by 0.57%, HCL Technologies down by 0.31% and Tech Mahindra down by 0.31% were the top losers.

Meanwhile, Moody's Investors Service in its latest report has said the key determinant of India's fiscal strength and the credit profile will be debt affordability and projected a downward trend for the debt burden. It stated as long as nominal GDP growth holds, India's debt burden will be stable or decline slightly.

It mentioned India's fast-growing GDP, which is estimated to average 11 per cent in nominal terms, is a key driver of the projections of a downward trend in the country's debt burden.  As in the past, the key determinant of fiscal strength and the credit profile will be debt affordability and in particular the proportion of revenue absorbed by interest payments.

India has a relatively high level of general government debt, estimated at around 81.8 per cent of GDP for 2022-23, compared with the Baa-rated median of around 56 per cent. The country also has a low debt affordability, in terms of general government interest payments as a percentage of revenues, which for India is estimated at 26 per cent for 2022-23, compared with the Baa median of around 8.4 per cent. Moody's has a 'Baa3' sovereign credit rating on India, with stable outlook. Baa3 is the lowest investment grade rating.

The CNX Nifty is currently trading at 18778.60, up by 90.50 points or 0.48% after trading in a range of 18710.50 and 18785.45. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.21%, HDFC Life Insurance up by 1.80%, Bajaj Finserv up by 1.71%, UPL up by 1.33% and Hindalco up by 1.15%. On the flip side, BPCL down by 0.90%, TCS down by 0.87%, Hero MotoCorp down by 0.81%, Eicher Motors down by 0.75% and Bajaj Auto down by 0.72% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 170.62 points or 0.86% to 19,999.54, Shanghai Composite strengthened 12.72 points or 0.39% to 3,265.70, KOSPI increased 9.94 points or 0.38% to 2,618.48, Straits Times rose 24.52 points or 0.76% to 3,267.37 and Nikkei 225 surged 149.6 points or 0.45% to 33,635.09.

On the flip side, Taiwan Weighted lost 60.08 points or 0.35% to 17,274.90 and Jakarta Composite plunged 29.76 points or 0.45% to 6,684.04.