Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Telecom, Capital Goods and Industrials stocks. Sentiments remained positive with a private report stating that a host of factors like a rising population, progress in innovation and technology, higher capital investments and rising labour productivity could potentially make India the world’s second largest economy by 2075. Some support also came as India’s direct tax collection soared 16 per cent to touch Rs. 4.75 trillion this financial year, showing continuity in revenue growth despite external headwinds. Traders also took a note of report that India has overtaken China as the most attractive emerging market for investing for sovereign wealth funds in 2023 due to its solid demographics, political stability and proactive regulation. On the global front, Asian markets are trading mostly higher after China signaled more economic measures to support the ailing property market.

The BSE Sensex is currently trading at 65697.91, up by 353.74 points or 0.54% after trading in a range of 65517.57 and 65767.42. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.89%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were Telecom up by 1.72%, Capital Goods up by 1.45%, Industrials up by 1.33%, Auto up by 1.09% and Power up by 1.00%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Sun Pharma up by 1.73%, Maruti Suzuki up by 1.51%, Bajaj Finserv up by 1.50%, Kotak Mahindra Bank up by 1.44% and Hindustan Unilever up by 1.36%. On the flip side, HCL Technologies down by 0.54%, SBI down by 0.24% and Wipro down by 0.15% were the top losers.

Meanwhile, rating agency Crisil in its latest report has said robust loan collections and high credit growth at non-bank lenders led to a 60 per cent jump in securitisation volumes to Rs 55,000 crore in the April-June quarter of FY2023-24 (Q1FY24).

This is the highest ever in the first quarter of a fiscal year, rating agency said, attributing the growth to high demand from banks and non-banking finance companies (NBFCs) resorting to securitisation as a funding route.

It said during the first quarter, the number of transactions went up to over 250 from 160 in the year-ago period. It added that private and public sector banks continued to be the dominant investors, followed by foreign banks. Besides, it stated there were 80 originators and 50 investors active during the quarter.

Securitisation refers to an activity where a financier or lender transfers future receivables on a loan or a bunch of loans to other financiers, which helps with immediate liquidity requirements.

The CNX Nifty is currently trading at 19475.35, up by 119.45 points or 0.62% after trading in a range of 19406.45 and 19488.15. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 2.20%, Sun Pharma up by 2.03%, Britannia Industries up by 1.84%, Bajaj Finserv up by 1.56% and Larsen & Toubro up by 1.56%. On the flip side, UPL down by 1.73%, Hero MotoCorp down by 0.76%, HCL Technologies down by 0.65%, JSW Steel down by 0.30% and Wipro down by 0.22% were the top losers.

Asian markets are trading mostly higher; Taiwan Weighted added 208.53 points or 1.24% to 16,861.33, Hang Seng advanced 310.82 points or 1.65% to 18,790.54, Shanghai Composite strengthened 15.88 points or 0.49% to 3,219.58, KOSPI increased 32.87 points or 1.29% to 2,553.57, Jakarta Composite gained 38.02 points or 0.56% to 6,769.06 and Straits Times rose 3.46 points or 0.11% to 3,152.78.

On the flip side, Nikkei 225 slipped 85.94 points or 0.27% to 32,103.79.