Markets magnify previous session’s gains with positive opening

With a positive opening, Indian equity markets have magnified their previous session’s gains and are trading in green with gains of around quarter a percent in early deals on Friday on firm global cues. Sentiments got boost after Labor Department report showed producer prices in the U.S. inched up by slightly less than expected in the month of June. Further, foreign fund inflows aided domestic sentiments. Foreign institutional investors (FII) bought shares worth a net Rs 2,237.93 crore on July 13. Traders took a note of report that Economic Affairs Secretary Ajay Seth said that the role of India’s G20 presidency is to lead the effort to develop global consensus, and there continues to be a strong desire that all countries continue to work together to find that consensus.

On the global front, Asian markets are trading higher following positive cues from global markets overnight. The US markets ended higher on Thursday as data showed the annual increase in U.S. producer inflation was the smallest in nearly three years. The data provided more evidence that inflation pressures were subsiding. The Labor Department said its producer price index for final demand crept up by 0.1 percent in June after falling by a revised 0.4 percent in May. Back home, on the sectoral front, traders were seen piling up position in IT, Realty, TECK, Telecom and Metal, while selling was witnessed in Utilities, Power and Healthcare.

The BSE Sensex is currently trading at 65709.03, up by 150.14 points or 0.23% after trading in a range of 65681.61 and 65917.80. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index up by 0.80%.

The top gaining sectoral indices on the BSE were IT up by 1.13%, Realty up by 1.12%, TECK up by 0.92%, Telecom up by 0.82% and Metal up by 0.73%, while Utilities down by 0.79%, Power down by 0.75% and Healthcare down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were HCL up by 1.77%, Infosys up by 1.33%, Tech Mahindra up by 1.11%, SBI up by 0.71% and TCS up by 0.52%. On the flip side, Power Grid down by 2.41%, NTPC down by 0.82%, Mahindra & Mahindra down by 0.71%, Reliance Industries down by 0.48% and Sun Pharma down by 0.33% were the top losers.

Meanwhile, Chief Economic (CEA) Adviser V Anantha Nageswaran has said that turning jobseekers into job-givers is an important goal of the government and many steps have been taken in recent years to achieve this objective.  He stated 'It relieves pressure on the job market. In terms of financing, the credit guarantee scheme that was launched during Covid, and continued until this year, has done a wonderful job in ensuring that the MSME space remains vibrant.'

Citing a study, he said the unified payments interface is helping create a credit eco-system, as it provides information to banks about the granular behaviour of nano-entrepreneurs. This information flow will encourage banks to increase their lending because the credit footprints created will help them take key financial decisions.

Besides, he said ‘In the 202324 Budget, the government made a very important announcement: those small entrepreneurs who want to claim deductible business expenditures can only do so if they have actually made the payment, rather than on an approval basis.’

The CNX Nifty is currently trading at 19464.30, up by 50.55 points or 0.26% after trading in a range of 19451.15 and 19520.40. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were HCL up by 1.95%, Hindalco up by 1.77%, Infosys up by 1.53%, Tech Mahindra up by 1.38% and LTIMindtree up by 1.34%. On the flip side, Power Grid down by 2.18%, Apollo Hospital down by 1.24%, NTPC down by 0.85%, Dr. Reddy's Lab down by 0.73% and Mahindra & Mahindra down by 0.63% were the top losers.

All Asian markets are trading higher; Taiwan Weighted added 195.68 points or 1.15% to 17,257.08, Hang Seng advanced 36.75 points or 0.19% to 19,387.37, Shanghai Composite strengthened 9.23 points or 0.28% to 3,245.71, KOSPI increased 30.74 points or 1.19% to 2,621.97, Jakarta Composite gained 30.96 points or 0.45% to 6,841.17, Straits Times rose 9.33 points or 0.29% to 3,247.79 and Nikkei 225 surged 98.64 points or 0.3% to 32,517.97.