Markets remain in green in late morning deals

Domestic equity markets remained in green and traded marginally higher in late morning deals amid mixed cues from other Asian markets. Meanwhile, broader indices on the BSE outperformed their large peers. Traders took 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 remained capped as the Finance Ministry in its report said global and regional uncertainties and domestic disruptions may keep inflationary pressures elevated in India for the coming months. On the sectoral front, traders were seen pilling up position in Telecom, Utilities, Industrials, Capital Goods and Power, while selling was witnessed in IT and TECK. 

On the global front, Asian markets were trading mixed, as yields of U.S. 10-year Treasury bonds hit levels not seen in over a decade. The benchmark 10-year Treasury note yield hit a high of 4.34%, reaching its highest level since November 2007. This is notable as higher bond yields generally mean lower stock prices. Back home, in the stock specific development, Adani Enterprises rose after founder firm Kempas Trade and Investment bought 25.3 million shares or 2.22 per cent stake in the company from the open market between Aug 7 to Aug 18. 

The BSE Sensex is currently trading at 65277.03, up by 60.94 points or 0.09% after trading in a range of 65165.45 and 65362.91. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.72%, while Small cap index up by 0.77%.

The top gaining sectoral indices on the BSE were Telecom up by 1.67%, Utilities up by 1.05%, Industrials up by 0.96%, Capital Goods up by 0.89% and Power up by 0.82%, while IT down by 0.10% and TECK down by 0.03% were the few losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.49%, Bajaj Finance up by 1.08%, ITC up by 1.02%, Mahindra & Mahindra up by 0.75% and Maruti Suzuki up by 0.47%. On the flip side, JIO Financial down by 4.99%, Sun Pharma down by 0.54%, TCS down by 0.48%, Titan down by 0.44% and Infosys down by 0.35% were the top losers.

Meanwhile, think tank Global Trade Research Initiative (GTRI) in a report has said that a healthy growth in India’s services segments has helped India's foreign trade (exports and imports of merchandise and services) to cross the $800 billion mark during the first half of 2023, despite a slowdown in global demand. India's foreign trade reached $800.9 billion during January-June 2023, exhibiting a decline of 2.5 per cent over the same period last year (January-June 2022). 

According to the analysis of the GTRI, exports of goods and services rose by 1.5 per cent to $385.4 billion during January-June this year, as against $379.5 billion in January-June 2022. Imports, however, dipped by 5.9 per cent to $415.5 billion during the six months of this year, as against $441.7 billion in January-June 2022. Standalone, goods exports dipped by 8.1 per cent to $218.7 billion, while imports contracted by 8.3 per cent to $325.7 billion. On the other hand, services exports during the six months period grew by 17.7 per cent to $166.7 billion, while imports rose by 3.7 per cent to $89.8 billion.

GTRI Co-founder Ajay Srivastava has stated that data is showing modest decline due to weak global demand and losing competitiveness in labour intensive sectors. The decline in merchandise exports happened despite appreciating INR (Indian Rupee). INR/USD exchange rate appreciated from 76.16 in April 2022 to 82.18 in Apr 2023. He said the world trade outlook for 2023 is weak due to a number of factors, including the ongoing war in Ukraine, high inflation, tighter monetary policy, and financial uncertainty. However, he cautioned that these factors will soon be overshadowed by a spate of new subsidies and protectionist measures by the EU and US.

The CNX Nifty is currently trading at 19420.75, up by 27.15 points or 0.14% after trading in a range of 19381.45 and 19443.50. There were 33 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 4.11%, SBI Life up by 2.19%, Adani Enterprises up by 1.45%, NTPC up by 1.44% and ITC up by 1.06%. On the flip side, JIO Financial down by 5.00%, Cipla down by 1.11%, TCS down by 0.53%, Eicher Motors down by 0.47% and Infosys down by 0.44% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 78.08 points or 0.47% to 16,459.57, Jakarta Composite gained 43.71 points or 0.63% to 6,909.74, KOSPI increased 4.03 points or 0.16% to 2,512.83 and Nikkei 225 surged 307.67 points or 0.97% to 31,873.31. However, Hang Seng declined 10.56 points or 0.06% to 17,612.73, Straits Times fell 8.63 points or 0.27% to 3,145.40 and Shanghai Composite weakened 13.89 points or 0.45% to 3,079.09.