Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, propelled by bullish global market trends. Traders took encouragement with report stating that Foreign Portfolio Investors (FPIs) have pumped Rs 47,148 crore in the Indian equities in June, making it the highest inflow in 10 months, enthused by the country's steadily improving macroeconomic fundamentals. Some support also came with the labour ministry stating that retail inflation for industrial workers eased to 4.42 per cent in May 2023 from 5.09 per cent in April and 6.97 per cent during the corresponding month a year before, mainly due to lower prices of certain food items. Traders also took a note of data showing that India's manufacturing industry expanded at the second-fastest rate this year in June, albeit at a slightly slower pace than in May, supported by robust demand despite higher inflationary pressures. The S&P Global Manufacturing Purchasing Managers' Index fell to 57.8 in June from May's 58.7. On the global front, Asian markets are trading higher as new U.S. data showing lower consumer spending and cooling inflation fueled hopes the Federal Reserve could be nearing its rate-hiking cycle.

The BSE Sensex is currently trading at 65226.51, up by 507.95 points or 0.78% after trading in a range of 64836.16 and 65240.09. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.47%, while Small cap index was up by 0.64%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.44%, Metal up by 1.23%, Energy up by 1.16%, Bankex up by 0.93% and Telecom up by 0.88%, while IT down by 0.05% was the sole losing index on BSE

The top gainers on the Sensex were HDFC up by 3.30%, HDFC Bank up by 2.89%, Ultratech Cement up by 1.78%, Tata Steel up by 1.43% and Mahindra & Mahindra up by 0.99%. On the flip side, Power Grid Corporation down by 1.20%, Tech Mahindra down by 0.68%, Axis Bank down by 0.61%, Maruti Suzuki down by 0.60% and Sun Pharma down by 0.49% were the top losers.

Meanwhile, the labour ministry has said retail inflation for industrial workers eased to 4.42 per cent in May 2023 from 5.09 per cent in April and 6.97 per cent during the corresponding month a year before, mainly due to lower prices of certain food items. 

Moreover, it said food inflation stood at 3.24 per cent in May as against 4.16 per cent in the previous month and 7.92 per cent during the year-ago period. The All India CPI-IW for May 2023 increased by 0.5 points to 134.7.

Besides, it said the maximum upward pressure in current index came from Food & Beverages group contributing 0.37 percentage points to the total change. At centre level, Jabalpur recorded a maximum increase of 5.2 points followed by Salem with 3.8 points. Among others, 2 centres recorded increase between 2 to 2.6 points, 14 centres between 1 to 1.9 points and 34 centres between 0.1 to 0.9 points.

The CNX Nifty is currently trading at 19316.15, up by 127.10 points or 0.66% after trading in a range of 19234.40 and 19336.10. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were HDFC up by 2.84%, HDFC Bank up by 2.45%, BPCL up by 2.32%, Divi's Lab up by 1.72% and Ultratech Cement up by 1.65%. On the flip side, Power Grid Corporation down by 1.18%, Bajaj Auto down by 1.12%, Hero MotoCorp down by 0.98%, UPL down by 0.68% and Axis Bank down by 0.65% were the top losers.

All Asian markets are trading higher; Taiwan Weighted added 163.54 points or 0.97% to 17,079.08, Hang Seng advanced 323.87 points or 1.71% to 19,240.30, Shanghai Composite strengthened 38.87 points or 1.21% to 3,240.93, KOSPI increased 32.63 points or 1.27% to 2,596.91, Jakarta Composite gained 21.64 points or 0.32% to 6,683.52, Straits Times rose 9 points or 0.28% to 3,214.91 and Nikkei 225 surged 548.94 points or 1.65% to 33,737.98.