Domestic indices trade flat with positive bias

Domestic indices traded flat with positive bias in late morning deals amid mixed cues from other Asian markets. Buying in Mahindra & Mahindra, Indusind Bank and Bajaj Finserv helped markets to trade above neutral lines. Traders took note of private report that India's economy will grow at a solid pace for the rest of this fiscal year and next but well below its potential rate. Further, it said the employment situation will improve only slightly. However, gains remained limited as investors digested the latest batch of earnings results and awaited the Fed's interest-rate decision due later in the week. On the sectoral front, traders were seen pilling up position in PSU, Industrials, Realty, Capital Goods and Auto, while selling was witnessed in Metal, Consumer Durables, FMCG and Bankex. 

On the global front, Asian markets were trading mixed as investors digested key economic data from across the region. Japan’s business activity expanded for a seventh straight month, with the purchasing managers index from the au Jibun bank unchanged from June’s figure of 52.1. Meanwhile, Malaysia’s inflation rate came in at 2.4% for June, its fourth straight month of decline and lowest point since April 2022′s figure of 2.3%. Back home, in the stock specific developments, Aarti Drugs surged after its board approved a share buyback plan via the tender offer route. 

The BSE Sensex is currently trading at 66740.73, up by 56.47 points or 0.08% after trading in a range of 66532.31 and 66808.56. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.63%, while Small cap index up by 0.48%.

The top gaining sectoral indices on the BSE were PSU up by 1.23%, Industrials up by 0.88%, Realty up by 0.80%, Capital Goods up by 0.76% and Auto up by 0.69%, while Metal down by 0.21%, Consumer Durables down by 0.21%, FMCG down by 0.12% and Bankex down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.63%, Indusind Bank up by 1.32%, Bajaj Finserv up by 1.22%, SBI up by 0.98% and ICICI Bank up by 0.83%. On the flip side, Kotak Mahindra Bank down by 3.66%, Tata Steel down by 1.24%, Reliance Industries down by 1.11%, Tech Mahindra down by 0.78% and Nestle down by 0.60% were the top losers.

Meanwhile, retail inflation for farm workers and rural labourers inched up marginally to 6.31 per cent and 6.16 per cent, respectively in June 2023 as compared to 5.99 per cent and 5.84 per cent in May this year. Point-to-point rate of inflation based on CPI-AL (consumer price index agricultural labour) and CPI-RL (rural labour) for June 2023 increased by 10 points each to 1,196 points and 1,207 points, respectively. CPI-AL and CPI-RL were 1,186 points and 1,197 points in May 2023. 

Similarly, food inflation stood at 7.03 per cent and 6.70 per cent in June, compared to 6.31 per cent and 6.07 per cent in May and 5.09 per cent and 5.16 per cent in the year-ago period. The major contribution towards the rise in general index of AL and RL came from food group to the extent of 9.59 points and 8.96 points, respectively mainly due to increase in prices of rice, pulses, milk, meat goat, fish-fresh/dry, gur, chillies-green/dry, garlic, ginger, onion, vegetables & fruits, etc. The rise/fall in index varied from state to state. 

In case of agricultural labour (AL), it recorded an increase of 2-20 points in 17 states and a decrease of 4 points in Himachal Pradesh and 18 points in Jammu & Kashmir while it remained stationary for Kerala. Tamil Nadu with 1,391 points topped the index table whereas Himachal Pradesh with 914 points stood at the bottom. In case of rural labour (RL), it recorded an increase of 1-20 points in 18 states and a decrease of 2 points in Rajasthan and 16 points in Jammu & Kashmir. Tamil Nadu with 1,379 points topped the index table whereas Himachal Pradesh with 973 points stood at the bottom.

The CNX Nifty is currently trading at 19752.90, up by 7.90 points or 0.04% after trading in a range of 19704.20 and 19782.75. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were SBI Life up by 1.91%, HDFC Life up by 1.64%, Mahindra & Mahindra up by 1.59%, Grasim Industries up by 1.41% and Indusind Bank up by 1.33%. On the flip side, Kotak Mahindra Bank down by 3.66%, Reliance Industries down by 1.28%, Tata Steel down by 1.20%, Britannia down by 1.15% and JSW Steel down by 0.82% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 16.02 points or 0.09% to 17,046.72, KOSPI increased 18.65 points or 0.71% to 2,628.41, Jakarta Composite gained 17.24 points or 0.25% to 6,898.04 and Nikkei 225 surged 363.57 points or 1.11% to 32,667.82. However, Hang Seng declined 313.55 points or 1.67% to 18,761.71, Shanghai Composite weakened 3.84 points or 0.12% to 3,163.91 and Straits Times fell 18.18 points or 0.56% to 3,260.12.