Domestic indices extend gains in late morning deals

Domestic equity markets extended their early gains and were trading higher with gains of over quarter a percent in late morning deals on account buying by funds and retail investors. Meanwhile, broader indices on the BSE have outperformed their large peers. Traders were getting encouragement as the government expects vegetable prices to start cooling off from next month with the advent of new crops in the market. Traders took a note of private report that a decision on a long pending issue of initiating a review of the existing free trade agreement on goods between India and the 10-nation Asean bloc may be taken up during a meeting in Indonesia Today. The issue will come up for discussion and decision during the India-Asean economic ministers meeting. The meeting is being held on the sidelines of the ongoing meeting of the Economic ministers of ASEAN. On the sectoral front, almost all the sectoral indices on BSE were trading into positive territory; however stocks from Energy counter were the only exception. Stocks from Utilities, Power, Metal, Healthcare and IT counters were the prominent gainers of the session.

On the global front, Asian markets were trading mixed as investors looked ahead to the Federal Reserve’s Jackson Hole symposium for a guide on where rates might settle when the dust of this hiking cycle clears. Back home, in the stock specific developments, Jio Financial Services (JFS) fell in its market debut, valuing it at around $19 billion. Reliance Industries dropped. JFS will be removed from the Nifty and Sensex on August 24, per exchange rules.  

The BSE Sensex is currently trading at 65185.07, up by 236.41 points or 0.36% after trading in a range of 64852.70 and 65204.29. There were 27 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.66%, while Small cap index up by 0.50%.

The top gaining sectoral indices on the BSE were Utilities up by 1.92%, Power up by 1.69%, Metal up by 1.00%, Healthcare up by 0.70% and IT up by 0.56%, while Energy down by 0.07% was the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.17%, Power Grid up by 2.06%, NTPC up by 1.49%, Bajaj Finserv up by 1.19% and Tata Motors up by 1.10%. On the flip side, Reliance Industries down by 1.23%, Mahindra & Mahindra down by 0.68%, Maruti Suzuki down by 0.24% and Larsen & Toubro down by 0.07% were the top losers.

Meanwhile, a labour ministry has said that retail inflation for farm and rural workers inched up to 7.43 per cent and 7.26 per cent in July 2023 as compared to 6.31 per cent and 6.16 per cent, respectively, in June 2023, mainly due to higher prices of certain food items. The All-India Consumer Price Index Number for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) for July 2023 increased by 19 points each to stand at 1,215 and 1,226 points, respectively. The CPI-AL and CPI-RL were 1,196 and 1,207 points, respectively, in June 2023. 

Similarly, it stated that food inflation stood at 8.88 per cent and 8.63 per cent in July 2023 compared to 7.03 per cent and 6.70 per cent, respectively, in June 2023 and 5.38 per cent and 5.44 per cent during the corresponding month of the previous year. The major contribution towards the rise in general index of Agricultural Labourers and Rural Labourers came from food group to the extent of 18.23 and 18.28 points, respectively, mainly due to increase in prices of rice, wheat atta, pulses, milk, fish-fresh/dry, gur, chillies-green/dry, turmeric, garlic, ginger, onion, mixed spices, brinjal, tomato, gourd, etc.

In case of agricultural labour (AL), it recorded an increase of 1 to 29 points in 20 states. Tamil Nadu with 1,420 points topped the index table, whereas Himachal Pradesh with 932 points stood at the bottom. In case of rural labour (RL), it registered an increase of 9 to 28 points in 20 states. Tamil Nadu with 1,407 points topped the index table, whereas Himachal Pradesh with 993 points stood at the bottom.

The CNX Nifty is currently trading at 19370.20, up by 60.05 points or 0.31% after trading in a range of 19296.30 and 19379.90. There were 42 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.32%, Adani Ports up by 2.02%, Hindalco up by 1.98%, Power Grid up by 1.91% and UPL up by 1.69%. On the flip side, Reliance Industries down by 1.24%, Mahindra & Mahindra down by 0.68%, Britannia down by 0.38%, Maruti Suzuki down by 0.19% and Larsen & Toubro down by 0.15% were the top losers.

Asian markets were trading mixed; Taiwan Weighted lost 12.82 points or 0.08% to 16,368.49, Hang Seng declined 265.88 points or 1.48% to 17,684.97, Shanghai Composite weakened 16.75 points or 0.53% to 3,115.20 and Straits Times fell 19.97 points or 0.63% to 3,153.96. However, KOSPI increased 3.76 points or 0.15% to 2,508.26, Jakarta Composite gained 7.52 points or 0.11% to 6,867.43 and Nikkei 225 surged 94.55 points or 0.3% to 31,545.31.