Markets trade flat with positive bias in late morning deals

Domestic equity markets traded flat with a positive bias in late morning deals amid firm cues from other Asian markets. Meanwhile, broader indices on the BSE outperformed their large peers and were trading with gains in range of 0.75-0.85%. Traders got some encouragement with Economic Affairs Secretary Ajay Seth’s statement that the government is confident of meeting the fiscal deficit target of 5.9 per cent of gross domestic product (GDP) and the nominal GDP target of 10.5 per cent despite pressure in the initial months of FY24. Metal industry related stocks were in focus on private report that steel rebar prices have increased by Rs 1,500 -Rs 2,500 per tonne, and this is the fifth time in five weeks that the rebar prices have seen an appreciation, and China took action to revive property sector.

On the global front, Asian markets were trading higher as another solid month of U.S. job creation boosted hopes that the world's largest economy is heading for a so-called soft landing. Back home, on the  BSE sectoral front,  traders were seen pilling up position in Metal, PSU, Realty, Utilities and Energy, while selling was witnessed in Auto, FMCG, Bankex and Teleco. In the stock specific development, Nazara Technologies surged after the company announced plans to raise Rs 100 crore by issuing shares on preferential basis to Nikhil Kamath’s firms.  

The BSE Sensex is currently trading at 65402.08, up by 14.92 points or 0.02% after trading in a range of 65285.56 and 65630.85. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.74%, while Small cap index up by 0.85%.

The top gaining sectoral indices on the BSE were Metal up by 3.06%, PSU up by 1.83%, Realty up by 1.67%, Utilities up by 1.12% and Energy up by 0.97%, while Auto down by 0.30%, FMCG down by 0.26%, Bankex down by 0.20% and Telecom down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 4.21%, Ultratech Cement up by 3.23%, NTPC up by 1.21%, Tech Mahindra up by 1.12% and Wipro up by 0.93%. On the flip side, Mahindra & Mahindra down by 1.67%, Asian Paints down by 1.04%, Nestle down by 0.93%, ITC down by 0.71% and Axis Bank down by 0.70% were the top losers.

Meanwhile, the Securities and Exchange Board of India (SEBI) in its latest data has showed that investment in the Indian capital markets through participatory notes (P-notes) rose to close to a six-year high at Rs 1.23 lakh crore in July-end, making it the fifth consecutive monthly increase, on the back of stable macroeconomic fundamentals. The amount has reached the highest level since December 2017 -- when investment through the route stood at Rs 1.25 lakh crore. 

According to Sebi data, the value of P-note investments in Indian markets -- equity, debt, and hybrid securities -- stood at Rs 1,22,805 crore at the end of July as compared to Rs 1,13,291 a month earlier. In comparison, investment through the route was Rs 1,04,585 crore in May-end, Rs 95,911 crore in April-end, Rs 88,600 crore in March-end, Rs 88,398 crore in February-end and Rs 91,469 crore in January-end. 

The growth in P-notes generally aligns with the trend in FPI flows. When there is a global risk to the environment, investment through this route increases, and vice-versa. P-notes are issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due-diligence process. 

The CNX Nifty is currently trading at 19463.80, up by 28.50 points or 0.15% after trading in a range of 19432.85 and 19526.80. There were 30 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Coal India up by 4.73%, Tata Steel up by 4.33%, Hindalco up by 3.31%, Ultratech Cement up by 3.15% and NTPC up by 1.30%. On the flip side, Mahindra & Mahindra down by 1.68%, SBI Life down by 1.32%, Asian Paints down by 1.10%, HDFC Life Insurance down by 1.04% and Nestle down by 1.00% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 425.51 points or 2.31% to 18,807.57, Taiwan Weighted added 125.43 points or 0.75% to 16,770.37, Straits Times rose 5.67 points or 0.18% to 3,238.97, Shanghai Composite strengthened 32.81 points or 1.05% to 3,166.06, Jakarta Composite gained 21.75 points or 0.31% to 6,999.40, KOSPI increased 15.02 points or 0.59% to 2,578.73 and Nikkei 225 surged 170.57 points or 0.52% to 32,881.19.