Benchmarks extend gains in morning deals

Indian equity benchmarks extended gains in morning deals, following a rally in global markets. Sentiments remained up-beat as the Index of Industrial Production (IIP) recovered to a three-month high of 5.2 per cent in May, despite a high-base effect, due to good performance by manufacturing, mining and electricity sectors. Traders also took note of Union Minister of State for Petroleum and Natural Gas Rameswar Teli’s statement that India is the fastest growing among the major economies of the world and the petroleum and petrochemical sector is playing a pivotal role in this. 

Traders overlooked reports that India’s retail inflation reversed its four-month downward trend in June on surging food prices, though it remained within the Reserve Bank of India’s (RBI’s) upper tolerance limit. The Consumer Price Index (CPI)-based inflation rate rose to a three-month high of 4.81 per cent year-on-year (YoY) in June, as against 4.31 per cent in the previous month, because of a sharp increase in the prices of food & beverages and services. On the global front, Asian markets are trading mostly in green as signs of slowing U.S. inflation bolstered hopes that the Federal Reserve would end its interest rate hikes soon. 

The BSE Sensex is currently trading at 65993.10, up by 599.20 points or 0.92% after trading in a range of 65605.88 and 66049.45. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.34%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were IT up by 2.17%, TECK up by 1.90%, Metal up by 1.08%, Realty up by 0.96% and Bankex up by 0.86%, while Utilities down by 0.71%, Power down by 0.69% and Healthcare down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.84%, Infosys up by 2.50%, Tech Mahindra up by 2.12%, Bajaj Finserv up by 1.42% and Wipro up by 1.40%. On the flip side, Power Grid Corporation down by 2.26%, Maruti Suzuki down by 0.39%, NTPC down by 0.31%, Sun Pharma down by 0.27% and Asian Paints down by 0.07% were the top losers.

Meanwhile, India’s industrial production growth measured in terms of the Index of Industrial Production (IIP) rose to 5.2 per cent in May, mainly due to good performance by the manufacturing and mining sectors.  The latest industrial growth figure is higher than that for April, when it had come in at 4.5 per cent. The factory output stood at 19.7 per cent in May 2022. For the month of May 2023, the Quick Estimates of IIP with base 2011-12 stood at 145.0. 

As per the data released by the National Statistical Office (NSO), the manufacturing sector’s output grew 5.7 per cent in May 2023 as against 20.7 per cent a year ago. Power generation rose to 0.9 per cent in May 2023 against a growth of 23.5 per cent. Mining output rose to 6.4 per cent during the month under review compared to a growth of 11.2 in the year-ago period. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2023 stand at 128.1, 142.3 and 201.6 respectively.

As per use-based classification, the capital goods segment recorded a 8.2 per cent growth in May compared to a 53.3 per cent expansion a year ago. Consumer durables output during the month rose 1.1 per cent against a 59.1 per cent growth a year ago. Consumer non-durable goods output grew 7.6 per cent against a growth of 1.4 per cent a year earlier. Infrastructure/construction goods posted a growth of 14.0 per cent compared to a 18.4 per cent expansion in the same period a year ago.

The data also showed that the output of primary goods logged 3.5 per cent growth in the month against 17.8 per cent in the year-ago period. The intermediate goods output in May grew by 1.6 per cent compared to a 17.5 per cent growth during the corresponding month last year. Besides, the indices stood at 149.8 for Primary Goods, 102.7 for Capital Goods, 154.1 for Intermediate Goods and 174.7 for Infrastructure/ Construction Goods for the month of May 2023. Further, the indices for Consumer durables and Consumer non-durables stood at 115.2 and 148.0 respectively for the month of May 2023.

The CNX Nifty is currently trading at 19549.60, up by 165.30 points or 0.85% after trading in a range of 19449.35 and 19566.65. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.14%, TCS up by 2.85%, Infosys up by 2.64%, Tech Mahindra up by 2.10% and SBI Life Insurance up by 1.88%. On the flip side, Power Grid Corporation down by 2.14%, Apollo Hospital Ent. down by 1.21%, Coal India down by 0.81%, UPL down by 0.61% and Maruti Suzuki down by 0.56% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 127.37 points or 0.75% to 17,089.40, Hang Seng advanced 469.41 points or 2.43% to 19,330.36, Shanghai Composite strengthened 27.36 points or 0.85% to 3,223.49, KOSPI increased 21.97 points or 0.85% to 2,596.69, Straits Times rose 54.83 points or 1.73% to 3,230.19 and Nikkei 225 surged 455.24 points or 1.43% to 32,399.17. On the flip side, Jakarta Composite plunged 12.69 points or 0.19% to 6,795.52.