Firm trade continues over Dalal Street

Firm cues from other Asian markets along with heavy buying at Utilities, Power and Metal counters were helping Indian equity markets to continue positive momentum, with both Sensex and Nifty trading higher. Investors reacted to data showing the U.S. economy grew more than expected in the second quarter, which helped quell fears of an imminent recession. Traders were taking a note of the income tax department’s statement that over 5 crore income tax returns (ITRs) have been filed for the 2022-23 fiscal, which ended March 31. Out of the 5.03 crore ITRs filed till July 27, 2023, about 4.46 crore ITRs have been e-verified i.e. more than 88 per cent ITRs filed have been e-verified.

On the global front, Asian markets were trading mostly in green, after Japan's consumer sentiment improved for the fifth straight month in July to the highest level in more than one-and-a-half years. The data from the Cabinet Office showed that the seasonally adjusted consumer confidence index climbed to 37.1 in July from 36.2 in June. Further, the latest reading was the highest since December 2021, when it was 38.8.

Back home, the electronics sector’s stocks were in watch, as emphasizing India’s role in critical and emerging technologies and importance of Nation’s growth in the electronics sector, particularly semiconductors, External Affairs Minister Dr S Jaishankar has stressed on India’s growing presence as a trusted global electronics manufacturing partner. 

The BSE Sensex is currently trading at 66346.68, up by 186.48 points or 0.28% after trading in a range of 65998.90 and 66419.31. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.65%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Utilities up by 1.86%, Power up by 1.71%, Metal up by 1.40%, PSU up by 1.24% and IT up by 1.03%, while FMCG down by 0.32% and Bankex down by 0.05% were the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.29%, Tech Mahindra up by 2.02%, Power Grid Corporation of India up by 1.92%, Tata Steel up by 1.87% and TCS up by 1.57%. On the flip side, Kotak Mahindra Bank down by 1.14%, Hindustan Unilever down by 0.94%, Bajaj Finance down by 0.86%, Asian Paints down by 0.80% and Larsen & Toubro down by 0.33% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that domestic companies can now go in for direct listing on foreign exchanges and the International Financial Services Centre (IFSC) in Ahmedabad. The provisions for direct overseas listing were approved by the government, as part of the Covid relief package announced in May 2020, but the rules in this regard are yet to be notified. The direct overseas listing will allow Indian companies to access foreign funds on various exchanges overseas.

The minister said the government has taken a decision to enable the direct listing of listed and unlisted companies on the IFSC exchanges. So, this is a major step forward. This will facilitate access to global capital and better valuation.

The facility will act as a backstop facility for specified debt funds during periods of stress in debt markets, and this was announced by Sebi last month. Its function will involve purchasing investment-grade corporate debt securities when debt markets face a crisis. The move is liely to bolster the confidence of mutual funds and investors in the corporate debt markets while also improving secondary market liquidity in corporate debt securities. SBI Funds Management will serve as the investment manager of the CDMDF.

The CNX Nifty is currently trading at 19694.65, up by 48.60 points or 0.25% after trading in a range of 19597.60 and 19719.80. There were 33 stocks advancing against 16 stocks declining, while one stock remained unchanged on the index.

The top gainers on Nifty were NTPC up by 3.12%, Adani Ports and Special Economic Zone up by 2.17%, Tech Mahindra up by 2.15%, ONGC up by 2.01% and Power Grid Corporation of India up by 1.98%. On the flip side, Apollo Hospital down by 2.55%, Britannia Industries down by 2.41%, HDFC Life Insurance down by 1.65%, Kotak Mahindra Bank down by 1.13% and Bajaj Finance down by 0.98% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 412.99 points or 1.24% to 33,172.22, Hang Seng advanced 284.95 points or 1.43% to 20,201.51, KOSPI increased 24.26 points or 0.92% to 2,632.58, Shanghai Composite strengthened 14.24 points or 0.43% to 3,290.17, Jakarta Composite gained 7.37 points or 0.11% to 6,907.60 and Straits Times rose 3.16 points or 0.09% to 3,374.33, while Taiwan Weighted lost 147.5 points or 0.86% to 17,145.43.