Bourses continue to soar higher in late afternoon session

Key benchmark indices continued to soar higher in late afternoon session on the back of buying interest across blue chip counters. Traders continued to take support after Finance Ministry said that GST collections rose 12 per cent to over Rs 1.61 lakh crore in June. The gross GST collection has crossed Rs 1.60 lakh crore mark for the fourth time since the roll-out of the indirect tax regime six years ago on July 1, 2017. Besides, output of eight core industries grew 4.3 per cent year-on-year in May 2023, the same rate as in the previous month. Sector wise, steel sector remained in limelight as steel production, having 17.92 per cent weight increased by 9.2 per cent in May, 2023 over May, 2022 and its cumulative index increased by 12.2 per cent during April to May, 2023-24 over the corresponding period of previous year.

On the global front, all Asian markets were trading higher as signs of a resilient U.S. economy and hopes that the Federal Reserve will taper its hawkish stance outweighed investor disappointment over sluggish PMI data from the region. European markets were trading higher boosted by gains in Italy's biggest insurer Generali after investor Delfin received a regulatory nod for a stake increase, while hopes of more policy stimulus from China also lifted sentiment.

The BSE Sensex is currently trading at 65213.99, up by 495.43 points or 0.77% after trading in a range of 64836.16 and 65247.74. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.25%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.25%, Energy up by 2.12%, Metal up by 1.34%, PSU up by 1.30% and Bankex was up by 0.84%, while Healthcare down by 0.71%, Auto down by 0.43%, Capital Goods down by 0.38%, IT down by 0.37% and TECK was down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.64%, HDFC up by 1.91%, SBI up by 1.79%, Ultratech Cement up by 1.77% and ITC up by 1.64%. On the flip side, Sun Pharma down by 1.99%, Power Grid down by 1.57%, Maruti Suzuki down by 1.00%, Nestle down by 0.87% and Tech Mahindra down by 0.83% were the top losers.

Meanwhile, India's manufacturing sector activity eased but remained above the neutral level of 50.0 in June, as surging demand for Indian goods translated into higher sales figures for manufacturers, which underpinned another robust expansion in input purchasing as firms actively procured resources to support production growth. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 57.8 in June from 58.7 in May.

The report noted that Indian goods producers registered a sharp increase in new work intakes during June, and one that was among the strongest seen since February 2021. Concurrently, new export orders rose solidly, though at a slower pace than in May. To meet rising sales, companies ramped up production in June. The expansion in output was sharp and among the fastest over the past year-and-a-half. Suppliers to the Indian manufacturing sector were comfortably able to meet rising demand for inputs.

On the inflation front, supported by buoyant client appetite, manufacturers lifted their selling prices in June. The rate of charge inflation was marked, the strongest in 13 months and above its long-run average. In certain cases, the upturn was attributed to higher labour and input costs. Although average purchasing prices continued to increase in June, the rate of inflation was mild by historic standards and among the lowest seen over the past three years.

The CNX Nifty is currently trading at 19322.40, up by 133.35 points or 0.69% after trading in a range of 19234.40 and 19336.10. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.07%, Reliance Industries up by 2.70%, Grasim Industries up by 2.51%, HDFC up by 1.96% and SBI up by 1.82%. On the flip side, Sun Pharma down by 2.01%, Bajaj Auto down by 1.76%, Power Grid down by 1.63%, Cipla down by 1.18% and UPL down by 1.17% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 564.29 points or 1.67% to 33,753.33, Hang Seng advanced 390.16 points or 2.02% to 19,306.59, Taiwan Weighted added 168.66 points or 0.99% to 17,084.20, Shanghai Composite strengthened 41.92 points or 1.29% to 3,243.98, KOSPI increased 38.19 points or 1.47% to 2,602.47, Jakarta Composite gained 27.26 points or 0.41% to 6,689.14 and Straits Times was up by 2.37 points or 0.07% to 3,208.28.

European markets were trading higher, UK’s FTSE 100 increased 19.13 points or 0.25% to 7,550.66, France’s CAC rose 11.13 points or 0.15% to 7,411.19 and Germany’s DAX was up by 47.4 points or 0.29% to 16,195.30.