Markets trade slightly higher in early deals; RIL AGM today

Indian equity markets have made a positive start on Monday tracking firm cues from global markets. Sentiment got support as traders celebrated the US Federal Reserve Chairman’s less hawkish stance, new measures by the Chinese authorities to support the markets. However, markets trimmed most of their gains and are trading slightly in green in early deals as the Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has said that foreign direct investment (FDI) equity inflows into India declined 34 per cent to $10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharma. Some cautiousness also prevailed in the markets as the Reserve Bank of India (RBI) in its latest data has said India's foreign exchange reserve fell by $7.3 billion to a near two-month low of $595 billion in the week ended August 18, registering the most substantial weekly decline in over six months. There was some buzz in electric vehicles industry related stocks as private report said that the finance ministry is considering the proposal for including the electric vehicles infrastructure under the priority sector lending category. The move will promote and accelerate the penetration of EVs in the country and attract investments in the sector. 

On the global front, Asian markets are trading in green following positive cues from US markets. The US markets ended higher on Friday as investors reacted positively to Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole Symposium. Back home, on the sectoral front, traders were seen pilling up position in Realty, Capital Goods, Industrials, Metal and Utilities, while selling was witnessed in TECK, FMCG, IT, Telecom and Consumer Durables. Reliance Industries is in focus, as the company will hold its annual general meeting (AGM) with the shareholders today later in the day. 

The BSE Sensex is currently trading at 64917.24, up by 30.73 points or 0.05% after trading in a range of 64776.92 and 65064.14. 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 0.27%, while Small cap index up by 0.52%.

The top gaining sectoral indices on the BSE were Realty up by 1.27%, Capital Goods up by 0.84%, Industrials up by 0.71%, Metal up by 0.54% and Utilities up by 0.50%, while TECK down by 0.39%, FMCG down by 0.33%, IT down by 0.32%, Telecom down by 0.21% and Consumer Durables down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 0.96%, Tata Steel up by 0.86%, Mahindra & Mahindra up by 0.81%, JSW Steel up by 0.75% and JIO Financial up by 0.61%. On the flip side, HCL down by 1.00%, Hindustan Unilever down by 0.87%, Asian Paints down by 0.67%, Bharti Airtel down by 0.64% and Titan down by 0.53% were the top losers.

Meanwhile, the Department for Promotion of Industry and Internal Trade (DPIIT) in its latest data has said that foreign direct investment (FDI) equity inflows into India declined 34 per cent to $10.94 billion during April-June 2023-24, dragged by lower inflows in computer hardware and software, telecom, auto and pharma. FDI inflows stood at $16.58 billion during April-June 2022-23. Inflows during January-March 2023 too had contracted 40.55 per cent to $9.28 billion.

It stated total FDI, which includes equity inflows, reinvested earnings and other capital, contracted 21.4 per cent to $17.56 billion during the period under review as against $22.34 billion in April-June 2022. During the quarter, FDI equity inflows decreased from major countries including Singapore, Mauritius, the US, UK, and UAE. Investments dipped significantly from Cayman Islands and Cyprus to $75 million and $6 million during April-June 2023 as against $450 million and $605 million in the year-ago period.

It highlighted that investments from overseas fell in April, May and June this fiscal to $5.1 billion, $2.67 billion and $3.16 billion, respectively as against $6.46 billion, $6.15 billion and $3.98 billion in the year-ago corresponding periods.

The CNX Nifty is currently trading at 19298.00, up by 32.20 points or 0.17% after trading in a range of 19249.70 and 19328.00. There were 32 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.73%, Cipla up by 1.47%, Adani Enterprises up by 1.03%, Mahindra & Mahindra up by 0.99% and Larsen & Toubro up by 0.97%. On the flip side, HCL down by 0.79%, Dr. Reddy's Lab down by 0.70%, Titan down by 0.60%, Britannia down by 0.58% and Hindustan Unilever down by 0.54% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 310.6 points or 1.7% to 18,266.98, Taiwan Weighted added 46.94 points or 0.28% to 16,528.52, Straits Times rose 33.14 points or 1.03% to 3,223.02, Shanghai Composite strengthened 70.37 points or 2.25% to 3,134.44, Jakarta Composite gained 30.31 points or 0.44% to 6,925.75, KOSPI increased 18.34 points or 0.72% to 2,537.48 and Nikkei 225 surged 506.04 points or 1.57% to 32,130.32.