Markets trim some gains in late morning deals

Domestic equity markets trimmed some of their gains in late morning deals on account of profit booking. Meanwhile, broader indices on the BSE were trading in red in the range of 0.10-0.25%. Markets participants were looking ahead to June quarter earnings (Q1FY24) this week, which will begin from Wednesday with IT giants such as TCS, Wipro and HCL Technologies reporting their numbers. However, indices continued to trade higher owing to hectic buying in Reliance Industries. Traders were getting some encouragement as the India Meteorological Department (IMD) said the bountiful rains in many parts of India in the first eight days of July have bridged the rainfall deficit for the entire country. The cumulative rainfall in the monsoon season has reached 243.2 mm, which is 2 per cent above the normal of 239.1 mm.

On the global front, Asian markets were trading mixed after China’s consumer price index was flat in June year-on-year, its lowest level since February 2021. Meanwhile, producer prices fell 5.4% year-on-year, the fastest rate of decline since December 2015. Back home, on the BSE sectoral front, traders were seen pilling up position in Metal, Energy, Auto, Industrials and Oil & Gas, while selling was witnessed in Consumer Durables, IT, Utilities, Power and TECK.

The BSE Sensex is currently trading at 65420.21, up by 139.76 points or 0.21% after trading in a range of 65342.55 and 65633.49. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.24%, while Small cap index down by 0.10%.

The top gaining sectoral indices on the BSE were Metal up by 1.81%, Energy up by 0.81%, Auto up by 0.16%, Industrials up by 0.06% and Oil & Gas up by 0.03%, while Consumer Durables down by 1.39%, IT down by 1.06%, Utilities down by 1.03%, Power down by 0.89%, TECK down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.89%, Tata Steel up by 2.51%, Tata Motors up by 1.54%, Bharti Airtel up by 0.79% and Sun Pharma up by 0.46%. On the flip side, Titan down by 2.92%, HCL down by 2.52%, Power Grid down by 2.19%, Bajaj Finance down by 2.06% and Bajaj Finserv down by 1.98% were the top losers.

Meanwhile, the chemical and fertiliser minister Mansukh Mandaviya has said that the excessive use of chemical fertilisers affects soil fertility and also has side effects on human and animal health. He also stressed on the need to promote alternative fertilisers like nano liquid urea and nano liquid Di-ammonium phosphate (DAP), organic farming and natural farming. He said there are no negative impact of nano-fertilisers and farmers will not adopt if it does not help in boosting production. 

The minister stated the side effects of over consumption of chemical fertilisers are visible now. He noted that soil health has been impacted and the growth in production and productivity has stagnated. Citing a medical study in few districts where usage of chemical fertilsers are high, he said it was found that there are negative impacts on health of human as well as animals. 

The minister highlighted that the government has recently approved a new scheme PM-PRANAM (PM Programme for Restoration, Awareness, Generation, Nourishment and Amelioration of Mother Earth) to incentivise states to promote alternative fertilisers and reduce the use of chemical fertilisers. It has also decided to introduce sulphur-coated urea (Urea Gold) in the country for the first time to address sulphur deficiency in the soil. That apart, the Cabinet Committee on Economic Affairs (CCEA) approved an outlay of Rs 1,451 crore subsidy to promote organic manure.

The CNX Nifty is currently trading at 19367.75, up by 35.95 points or 0.19% after trading in a range of 19346.80 and 19435.85. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.81%, Tata Steel up by 2.51%, JSW Steel up by 2.19%, Hindalco up by 1.92% and HDFC Life Insurance up by 1.83%. On the flip side, Titan down by 2.98%, HCL down by 2.45%, Power Grid down by 2.31%, Bajaj Finance down by 2.25% and Bajaj Finserv down by 2.07% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 91.73 points or 0.5% to 18,457.43, Shanghai Composite strengthened 1.95 points or 0.06% to 3,198.56, Jakarta Composite gained 28.08 points or 0.42% to 6,744.54 and Straits Times rose 4.8 points or 0.15% to 3,144.27. However, Taiwan Weighted lost 11.41 points or 0.07% to 16,652.80, KOSPI dropped 3.11 points or 0.12% to 2,523.60, Nikkei 225 slipped 158 points or 0.49% to 32,230.42.