Sensex, Nifty near neutral lines in early noon deals

Indian equity benchmarks traded near neutral lines in early afternoon deals, with both Sensex and Nifty marginally lower, on the back of negative cues from other Asian markets along with selling at Healthcare and Metal counters. Traders got cautious as Commerce and Industry Minister Piyush Goyal said that the developed economies are under stress, and there is a demand slowdown in the world market. Besides, an article published by the Reserve Bank of India (RBI) in its July bulletin has said that India's real Gross domestic product (GDP) needs to grow at 7.6 per cent annually over the next 25 years to achieve the per capita income level to become a developed economy.

On the global front, Asian markets were trading mostly in red, after China's property investment dropped further in the first half of the year, reflecting the woes faced by the cash-strapped developers despite signs of recovery seen at the start of the year. During January to June, property investment decreased 7.9 percent from the previous year. This was bigger than the 7.2 percent fall in the January to May period. Commercial property sales by floor space declined 5.3 percent in the first half of 2023.

The BSE Sensex is currently trading at 66586.65, down by 3.28 points after trading in a range of 66574.47 and 67007.02. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.50%, while Small cap index was down by 0.79%.

The top gaining sectoral indices on the BSE were TECK up by 0.46%, Power up by 0.42%, IT up by 0.35%, Utilities up by 0.21% and Oil & Gas up by 0.15%, while Healthcare down by 0.77%, Metal down by 0.72%, Realty down by 0.68%, PSU down by 0.47% and Consumer Durables down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.70%, Asian Paints up by 1.42%, HCL Technologies up by 0.55%, ICICI Bank up by 0.50% and NTPC up by 0.48%. On the flip side, Bajaj Finance down by 1.54%, Tata Motors down by 1.36%, Titan Company down by 1.33%, SBI down by 1.02% and Ultratech Cement down by 1.00% were the top losers.

Meanwhile, an article published by the Reserve Bank of India (RBI) in its July bulletin has said that India's real Gross domestic product (GDP) needs to grow at 7.6 per cent annually over the next 25 years to achieve the per capita income level to become a developed economy. However, it said the task may not be easy, given the current level of capital stocks, infrastructure and skill sets of the people. During 2022-23, India recorded a growth of 7.2 per cent. The RBI's projection for GDP growth for current fiscal year (FY24) is 6.5 per cent. 

The article said India must rebalance its economic structure by strengthening its industrial sector so that its share in GDP rises from the current level of 25.6 per cent to 35 per cent by 2047-48. Agriculture and services activity would have to grow at 4.9 per cent and 13 per cent per annum, respectively, in the coming 25 years with their sectoral shares in GDP at 5 per cent and 60 per cent, respectively, in 2047-48. It also said that to become a developed country by 2047, India's per capita GDP needs to rise by 8.8 times from the current level. In other words, the current per capita GDP of $2,500 needs to rise to $22,000.

Further, the article said the sustainable path to development requires investment in physical capital and comprehensive reforms across sectors covering education, infrastructure, healthcare and technology to raise productivity. Collaboration between the government, private sector, civil society and citizens is essential for driving this transformation. No unique criterion is used to define a country as a 'developed' one. The World Bank classifies countries as low-income, lower-middle-income, upper-middle income and high-income based on Per Capita Income (PCI).

The CNX Nifty is currently trading at 19704.60, down by 6.85 points or 0.03% after trading in a range of 19690.20 and 19819.45. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Infosys up by 1.80%, Asian Paints up by 1.52%, ONGC up by 0.54%, ICICI Bank up by 0.54% and NTPC up by 0.51%. On the flip side, LTIMindtree down by 2.48%, Divi's Laboratories down by 2.36%, Apollo Hospital down by 1.74%, Bajaj Finance down by 1.48% and Tata Motors down by 1.48% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 367.2 points or 1.93% to 19,046.58, Taiwan Weighted lost 106.38 points or 0.62% to 17,227.91, Jakarta Composite plunged 34 points or 0.5% to 6,833.14, KOSPI dropped 13.16 points or 0.51% to 2,605.84, Shanghai Composite weakened 8.38 points or 0.26% to 3,201.25 and Straits Times fell 3.85 points or 0.12% to 3,250.58, while Nikkei 225 surged 102.63 points or 0.32% to 32,493.89.