Domestic indices continue to trade in green in late morning deals

Domestic equity markets continued to trade in green in late morning deals tracking positive cues from other Asian markets. Meanwhile, broader indices on the BSE were also trading in green. Sentiments remained upbeat as the Indian economy grew 7.8 per cent in the June quarter, mainly on the back of double-digit expansion in the services sector, and retained its position as the world's fastest-growing major economy.  Further, some support also came in as Chief Economic Advisor (CEA) V Anantha Nageswaran has said the India’s economy is expected to grow at 6.5 per cent in the current fiscal (FY24) notwithstanding deficient monsoon rains. Metal industry related stocks were in focus as major Chinese banks cut deposit rates ahead of widely anticipated mortgage-rate cuts.

On the global front, Asian markets were trading in green on continued optimism that the US Fed will leave interest rates unchanged amid data showing US consumer price growth accelerated in line with estimates in July. Back home, all the sectoral indices, except Healthcare, on the BSE were trading in green led by Metal, Telecom, PSU, Oil & Gas and Utilities.  

The BSE Sensex is currently trading at 65049.61, up by 218.20 points or 0.34% after trading in a range of 64818.37 and 65082.42. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.41%, while Small cap index up by 0.64%.

The top gaining sectoral indices on the BSE were Metal up by 2.61%, Telecom up by 2.58%, PSU up by 1.96%, Oil & Gas up by 1.63% and Utilities up by 1.59%, while Healthcare down by 0.44% was the only losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 3.66%, NTPC up by 2.73%, JSW Steel up by 2.21%, Maruti Suzuki up by 1.98% and Power Grid up by 1.80%. On the flip side, Asian Paints down by 0.64%, Sun Pharma down by 0.32%, ICICI Bank down by 0.25%, HDFC Bank down by 0.22% and Nestle down by 0.19% were the top losers.

Meanwhile, the output of eight core industries rose 8 per cent in July 2023 from 4.8 per cent in July 2022. This is due to a low base effect and positive growth in all the eight sectors during the month. However, growth for the month of July is slightly lower than that of 8.3% in June 2023. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

Coal production, having 10.33 per cent weight increased by 14.9 per cent in July, 2023 over July, 2022 and its cumulative index increased by 10.1 per cent during April to July, 2023-24 over corresponding period of the previous year. Natural Gas production, having 6.88 per cent weight increased by 8.9 per cent in July, 2023 over July, 2022 and its cumulative index increased by 2.3 per cent during April to July, 2023-24 over the corresponding period of previous year. Petroleum Refinery production, having 28.04 per cent weight increased by 3.6 per cent in July, 2023 over July, 2022 and its cumulative index increased by 2.3 per cent during April to July, 2023-24 over the corresponding period of previous year.

Fertilizers production, having 2.63 per cent weight increased by 3.3 per cent in July, 2023 over July, 2022 and its cumulative index increased by 9.1 per cent during April to July, 2023-24 over the corresponding period of previous year. Steel production, having 17.92 per cent weight increased by 13.5 per cent in July, 2023 over July, 2022 and its cumulative index increased by 15.3 per cent during April to July, 2023-24 over the corresponding period of previous year. Cement production, having 5.37 per cent weight increased by 7.1 per cent in July, 2023 over July, 2022 and its cumulative index increased by 11.2 per cent during April to July, 2023-24 over the corresponding period of previous year.

Electricity generation having 19.85 per cent weight increased by 6.9 per cent in July, 2023 over July, 2022 and its cumulative index increased by 2.7 per cent during April to July, 2023-24 over the corresponding period of previous year. Crude Oil production, having 8.98 per cent weight increased by 2.1 per cent in July, 2023 over July, 2022, while its cumulative index declined by 1.0 per cent during April to July, 2023-24 over the corresponding period of previous year.

The CNX Nifty is currently trading at 19339.75, up by 85.95 points or 0.45% after trading in a range of 19255.70 and 19350.75. There were 40 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were ONGC up by 5.05%, Tata Steel up by 3.70%, JIO Financial up by 3.32%, Hindalco up by 2.78% and Coal India up by 2.72%. On the flip side, Asian Paints down by 0.84%, Divi's Lab down by 0.64%, Britannia down by 0.60%, Cipla down by 0.54% and Dr. Reddy's Lab down by 0.38% were the top losers.

Asian markets were trading in green; Taiwan Weighted added 33.66 points or 0.2% to 16,668.17, Shanghai Composite strengthened 8.93 points or 0.29% to 3,128.81, Jakarta Composite gained 16.16 points or 0.23% to 6,969.42, KOSPI increased 11.49 points or 0.45% to 2,567.76 and Nikkei 225 surged 130.17 points or 0.4% to 32,749.51.