Markets erase all gains in late morning deals

Domestic equity indices erased all of their early gains and were trading in red in late morning deals. Selling in Mahindra & Mahindra and Tech Mahindra pressured on the markets to trade lower. Further, some cautiousness also prevailed in markets as the U.S. Federal Reserve announced a 25-bps rate hike and left the door open for future hikes. However, broader indices on the BSE were trading higher with gains in the range of 0.30-0.60%. Traders took note of Prime Minister (PM) Narendra Modi’s statement that India would be among the top three economies in the world in his third term. On the BSE sectoral front, traders were seen pilling up position in Healthcare, Realty, Telecom, PSU and Industrials, while selling was witnessed in Auto, Oil & Gas, Energy, Bankex and FMCG.

On the Global front, Asian markets were mostly trading in green despite annual profits raked in by China’s industrial firms declined for the sixth consecutive month. China’s industrial profits recorded a year-to-date fall of 16.8%, according to the country’s National Bureau of Statistics. The reading is followed by a 18.8% drop from January to May. Back home, in the stock specific development, Rail Vikas Nigam Ltd (RVNL) tanked as the two-day offer for sale (OFS) by the railways PSU kicks off. 

The BSE Sensex is currently trading at 66536.78, down by 170.42 points or 0.26% after trading in a range of 66535.10 and 66984.17. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.58%, while Small cap index up by 0.33%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.09%, Realty up by 0.80%, Telecom up by 0.56%, PSU up by 0.33% and Industrials up by 0.29%, while Auto down by 0.99%, Oil & Gas down by 0.51%, Energy down by 0.35%, Bankex down by 0.27% and FMCG down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 1.78%, Bajaj Finserv up by 1.12%, Bharti Airtel up by 0.79%, Tata Motors up by 0.63% and Tata Steel up by 0.50%. On the flip side, Mahindra & Mahindra down by 5.60%, Tech Mahindra down by 3.13%, Nestle down by 2.09%, Axis Bank down by 0.80% and Indusind Bank down by 0.76% were the top losers.

Meanwhile, Reserve Bank of India (RBI) has permitted 20 banks operating in the country to open 92 Special Rupee Vostro Accounts (SRVAs) of partner banks from 22 countries including Bangladesh, Belarus, Botswana, Fiji, Germany, Guyana and Israel, as part of efforts to promote bilateral trade in local currencies. Other countries are Kazakhstan, Kenya, Malaysia, Maldives, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and United Kingdom.

Minister of State for Commerce and Industry Som Parkash has said that an memorandum of understanding (MOU) has been signed between the Reserve Bank of India (RBI) and the Central Bank of UAE on July 15, 2023. This would enable exporters and importers to invoice and pay in their respective domestic currencies enabling the development of a bilateral foreign exchange market. 

Meanwhile, Minister of State for Commerce and Industry Anupriya Patel said India's exports rose by 36.6 per cent during the last five years from $330.07 billion in 2018-19 to $450.95 billion in 2022-23. India's imports rose by 38.8 per cent during the last five years from $514.07 billion in 2018-19 to $714.04 billion in 2022-23. She also stated that most of the goods imported from China are capital goods, intermediate goods and raw materials and are used for meeting the demand of fast expanding sectors like electronics, telecom and power in India. 

The CNX Nifty is currently trading at 19747.95, down by 30.35 points or 0.15% after trading in a range of 19745.10 and 19867.55. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Cipla up by 8.80%, Dr. Reddy's Lab up by 1.81%, Sun Pharma up by 1.71%, Divi's Lab up by 1.69% and Hindalco up by 1.27%. On the flip side, Mahindra & Mahindra down by 5.57%, Tech Mahindra down by 3.07%, Nestle down by 2.08%, Tata Consumer down by 1.52% and Hero MotoCorp down by 1.00% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 83.16 points or 0.48% to 17,245.71, Hang Seng advanced 226.2 points or 1.15% to 19,591.34, Shanghai Composite strengthened 2.47 points or 0.08% to 3,225.50, KOSPI increased 8.98 points or 0.35% to 2,601.34 and Straits Times rose 26.76 points or 0.8% to 3,331.72. However, Jakarta Composite plunged 12.84 points or 0.19% to 6,935.44 and Nikkei 225 surged 231.41 points or 0.7% to 32,899.75.