Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Metal, Energy and Auto stocks. Traders took support with report that the non-performing advances (NPAs) of banks are at multi-year lows, supported by substantial write-offs, especially for state-owned banks. The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period. Some support also came as the Reserve Bank of India stating that India’s foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ended on June 30. The overall reserve had dropped by $2.901 billion to $593.198 billion in the previous reporting week. Meanwhile, the GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer. On the global front, Asian markets are trading mostly in green as traders react to softer-than-expected US jobs data in the month of June that eased concerns about the interest rate outlook.

The BSE Sensex is currently trading at 65596.57, up by 316.12 points or 0.48% after trading in a range of 65342.55 and 65633.49. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.16%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were Metal up by 1.41%, Energy up by 1.11%, Auto up by 0.53%, Oil & Gas up by 0.28% and Bankex up by 0.26%, while Utilities down by 1.07%, Consumer Durables down by 0.96%, Power down by 0.96%, IT down by 0.69% and Realty down by 0.69% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 4.33%, Tata Steel up by 1.88%, Tata Motors up by 1.71%, Ultratech Cement up by 0.99% and Bharti Airtel up by 0.53%. On the flip side, Titan Company down by 2.13%, Power Grid Corporation down by 2.05%, Bajaj Finance down by 1.98%, HCL Technologies down by 1.87% and Bajaj Finserv down by 1.54% were the top losers.

Meanwhile, Union Petroleum Minister Hardeep Singh Puri said the Centre has put in an eco-system for the development of Green Hydrogen in the country. He said  ‘We have a natural advantage in producing Green Hydrogen as we have an abundance of solar energy and investments in our power grid. We have the apt climate, resources, adequate production and strong supply-chain for Green Hydrogen.’

He stated India is climatically blessed and with the government's unwavering commitment to making the world a better place to live, the leading financial institutions have shown keen interest to invest in India. Further, he said that major financial institutions across the globe have committed to supporting the development of Green Hydrogen.

Besides, he mentioned ‘The European Investment Bank (EIB) will be our Hydrogen ally and would support developing large scale Industry hub with a funding of 1 billion Euros. The Asian Development Bank (ADB) has recently conveyed its intent to provide 20-25 billion dollars over five years to aid India's aspirations for green growth. That's not all, The World Bank has approved $1.5 Billion in Financing to Support India's Low-Carbon transition journey.’ He also mentioned the importance of the role Public sector units can play in the country to promote the Green Hydrogen economy.

The CNX Nifty is currently trading at 19431.25, up by 99.45 points or 0.51% after trading in a range of 19346.80 and 19435.85. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 4.55%, JSW Steel up by 2.52%, Hindalco up by 2.44%, Tata Steel up by 2.33% and HDFC Life Insurance up by 1.96%. On the flip side, Titan Co down by 2.19%, HCL Technologies down by 2.09%, Power Grid Corporation down by 2.04%, Bajaj Finance down by 2.01% and Bajaj Finserv down by 1.65% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 31.26 points or 0.19% to 16,695.47, Hang Seng advanced 103.58 points or 0.56% to 18,469.28, Shanghai Composite strengthened 2.09 points or 0.07% to 3,198.70, KOSPI increased 4.94 points or 0.2% to 2,531.65, Jakarta Composite gained 28.08 points or 0.42% to 6,744.54 and Straits Times rose 8.56 points or 0.27% to 3,148.03.

On the flip side, Nikkei 225 slipped 48.3 points or 0.15% to 32,340.12.