Domestic indices erase losses in late morning deals

Domestic equity markets erased their losses and were trading marginally higher in late morning deals owing to buying in Axis Bank, Larsen & Toubro and Reliance Industries. Meanwhile, broader indices on the BSE outperformed their large peers and were trading with gains in range of 0.55-0.80%. Sentiments got boost as a report said the country's real GDP growth in the first quarter of current financial year (Q1FY24) will be better than the Reserve Bank's estimate of 8 per cent. It pegged the growth at 8.3 per cent.  The sentiments were further supported by Indian rupee appreciating 5 paise to 82.93 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading mostly in green as investors assessed private business activity surveys from Australia and Japan, as well as inflation figures from Singapore. Japan saw a faster expansion in its business activity, with its flash PMI for August at 54.3 compared to July’s 53.8. Back home, on the sectoral front, traders were seen pilling up position in Metal, Capital Goods, Industrials, Consumer Durables and Realty, while selling was witnessed in Auto, FMCG, Power and Oil & Gas. 

The BSE Sensex is currently trading at 65316.71, up by 96.68 points or 0.15% after trading in a range of 65108.51 and 65436.10. There were 18 stocks advancing against 13 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 0.79%.

The top gaining sectoral indices on the BSE were Metal up by 1.11%, Capital Goods up by 1.03%, Industrials up by 1.01%, Consumer Durables up by 0.69% and Realty up by 0.67%, while Auto down by 0.29%, FMCG down by 0.28%, Power down by 0.13% and Oil & Gas down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.36%, Larsen & Toubro up by 1.04%, Reliance Industries up by 0.87%, Tata Steel up by 0.81% and SBI up by 0.74%. On the flip side, JIO Financial down by 5.00%, Sun Pharma down by 1.01%, ITC down by 0.92%, Tata Motors down by 0.82% and Mahindra & Mahindra down by 0.80% were the top losers.

Meanwhile, the PHD Chamber of Commerce and Industry (PHDCCI) has submitted several recommendations on issues related to the housing sector, banking and foreign trade to RBI Governor Shaktikanta Das. Amidst global economic challenges and ongoing pandemic impact, it made a strong case for lowering housing sector interest rates to stimulate growth. It said lower rates can invigorate investments, bolster consumption, enhance competitiveness, and aid industries facing headwinds.

The chamber highlighted several issues related to the banking sector, including the rectification of export realisation purpose codes and the protection of GST input benefits. It also called for permission to acquire existing units/companies in India using rupee loans, similar to overseas acquisitions. It said at present, a bank loan in Indian rupee is not permitted for the acquisition of any existing unit/ company in India, whereas the same is available for acquiring any unit/ company outside India.

Its recommendations on foreign trade include recovery of foreign bank charges from export proceeds, and liberalising pre-shipment credit in foreign currency (PCFC). The chamber also recommended that the 90 days limit fixed by RBI for classifying over dues of MSMEs should be increased to 180 days so that they are not constrained to divert their working capital towards servicing their loan instalments and clearing their over dues at the cost of their normal business operations.

The CNX Nifty is currently trading at 19422.25, up by 25.80 points or 0.13% after trading in a range of 19366.60 and 19450.20. There were 28 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.49%, Divi's Lab up by 1.80%, Axis Bank up by 1.41%, Larsen & Toubro up by 1.06% and LTIMindtree up by 0.94%. On the flip side, JIO Financial down by 4.99%, Sun Pharma down by 1.19%, Adani Enterprises down by 1.12%, ITC down by 0.99% and Adani Ports down by 0.99% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 61.42 points or 0.34% to 17,852.43, Taiwan Weighted added 119.51 points or 0.72% to 16,557.12, Straits Times rose 6.8 points or 0.21% to 3,166.68, Jakarta Composite gained 31.84 points or 0.46% to 6,948.29 and Nikkei 225 surged 38.07 points or 0.12% to 31,894.78. However, Shanghai Composite weakened 17.23 points or 0.56% to 3,103.10 and KOSPI dropped 14.21 points or 0.57% to 2,501.53.