Benchmarks manage to trade in green in morning deals

Indian equity benchmarks erased some initial gains but managed to trade in green in morning deals, led by gains Utilities, Telecom and Power stocks. Traders took some support with the latest payroll data released by the Employees’ Provident Fund Organisation (EPFO) showing that the number of fresh formal jobs increased for the third consecutive month in June to hit a 9-month high, thus signalling a sustained recovery in the labour markets in the first quarter of financial year 2023-24 (FY24). Traders also took a note of a private report that the value of foreign portfolio investors' holdings in the domestic equities reached $626 billion in the three months ended June 2023, which was 20 per cent higher from the year-ago period. However, gains remain capped as some concern came with think tank Global Trade Research Initiative (GTRI) stating that India’s exports and imports of goods and services declined 2.5% on-year in January-June 2023 at $800.9 billion. On the global front, Asian markets are trading mostly in green after declining in the previous session, after China issued a smaller-than-expected cut to key lending rates, triggering concerns over deflation and economic recovery. 

The BSE Sensex is currently trading at 65262.09, up by 46.00 points or 0.07% after trading in a range of 65165.45 and 65362.91. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Utilities up by 1.19%, Telecom up by 1.03%, Power up by 0.97%, Industrials up by 0.90% and PSU up by 0.80%, while IT down by 0.26%, TECK down by 0.25% and Consumer Durables down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.37%, ITC up by 0.76%, Power Grid Corporation up by 0.67%, Bajaj Finserv up by 0.66% and Bajaj Finance up by 0.65%. On the flip side, JIO Financial Services down by 4.99%, Titan Company down by 0.61%, Tech Mahindra down by 0.61%, TCS down by 0.50% and Sun Pharma down by 0.44% were the top losers.

Meanwhile, telecom Regulatory Authority of India(TRAI) in its report titled 'Indian Telecom Services Performance Indicators January - March, 2023' has said telecom service sector's adjusted gross revenue (AGR) rose 2.5 per cent sequentially to Rs 64,494 crore in March 2023 quarter. Seen year-on-year, the adjusted gross revenue increased 9.5 per cent over the corresponding period of the previous year.

The gross revenue (GR), Applicable Gross Revenue (ApGR) and Adjusted Gross Revenue (AGR) of the Telecom Service Sector for the quarter ended March 2023 was pegged at Rs 85,356 crore, Rs 78,631 crore and Rs 64,494 crore, respectively. While the GR decreased by 3.19 per cent, ApGR increased by 2.62 per cent and AGR increased by 2.53 per cent in March 2023 quarter, as compared to the previous quarter.

It stated that the year-on-year rate of growth in GR, ApGR and AGR in the quarter ended March 2023 over the same quarter in last year has been 11.69 per cent, 11.12 per cent and 9.52 per cent, respectively.  The license fee increased from Rs 5,031 crore for the quarter ended December 2022 to Rs 5,159 crore for the quarter ended March 2023. The quarterly and year-on-year rates of growth in license fees are 2.53 per cent and 9.47 per cent, respectively, in this quarter.

The CNX Nifty is currently trading at 19412.60, up by 19.00 points or 0.10% after trading in a range of 19381.45 and 19443.50. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 3.66%, Adani Enterprises up by 2.15%, SBI Life Insurance up by 2.10%, NTPC up by 1.35% and ONGC up by 0.88%. On the flip side, JIO Financial Services down by 5.00%, Cipla down by 1.02%, Titan Company down by 0.73%, Tech Mahindra down by 0.66% and LTIMindtree down by 0.60% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 28.85 points or 0.16% to 17,652.14, Taiwan Weighted added 62.46 points or 0.38% to 16,443.95, Jakarta Composite gained 43.71 points or 0.63% to 6,909.74, KOSPI increased 6.40 points or 0.25% to 2,515.20 and Nikkei 225 surged 274.42 points or 0.86% to 31,840.06.

On the global front, Straits Times fell 5.24 points or 0.17% to 3,148.79 and Shanghai Composite weakened 7.5 points or 0.24% to 3,085.48.