Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, supported by a rally in Metal, Telecom stocks and the positive sentiments fuelled by the success of the G20 Summit. Sentiments remained up-beat as the Reserve Bank said India’s forex reserves jumped by $4.039 billion to $598.897 billion for the week ended September 1. In the previous reporting week, the overall reserves had dropped by $30 million to $594.858 billion. A fall in crude oil prices and firm rupee also provided some relief to the market. Traders also took a note of report stating that India needs to grow at 8-9 per cent for the next 20 years to become a developed nation by 2047 as envisioned by Prime Minister Narendra Modi. On the global front, Asian markets are trading mixed ahead of US inflation September data this week, due out on Wednesday, with investors seeking signals about the Federal Reserve's next likely moves on interest rates.

The BSE Sensex is currently trading at 66913.20, up by 314.29 points or 0.47% after trading in a range of 66735.84 and 66963.91. There were 27 stocks advancing against 2 stocks declining on the index.

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

The top gaining sectoral indices on the BSE were Metal up by 1.15%, Telecom up by 1.01%, PSU up by 0.97%, Auto up by 0.92% and Industrials up by 0.67%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Wipro up by 1.58%, Maruti Suzuki up by 1.47%, Tata Steel up by 1.43%, HCL Technologies up by 1.27% and SBI up by 1.12%. On the flip side, Power Grid Corporation down by 0.35% and Indusind Bank down by 0.28% were the few losers.

Meanwhile, with an aim to further promote economic ties, India and Brazil have agreed to work together for the expansion of India-Mercosur preferential trade agreement (PTA). Mercosur is a trading bloc in Latin America, comprising Brazil, Argentina, Uruguay and Paraguay. The issue came up for discussion during the meeting of Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva at the sidelines of the G20 Summit.

A joint statement issued after the meeting said ‘Expressing satisfaction over the growing trade between India and Mercosur, both leaders agreed to work together for the expansion of India-Mercosur PTA during Brazil's Mercosur Presidency, to leverage the full potential of this economic partnership.’ The two countries also welcomed the establishment of the India-Brazil Business Forum as a dedicated platform for private-sector collaboration.

It added ‘The leaders noted with satisfaction the conclusion of domestic procedures for the entry into force of the India-Brazil Social Security Agreement.’ India-Mercosur preferential trade agreement (PTA) came into effect on June 1, 2009. In such agreements, two countries reduce or eliminate customs duties on a limited number of goods agreed between them. Expansion of the agreement would include more numbers of goods and negotiating norms to promote trade in services and boost investment. This PTA has limited coverage and contains only 450 tariff lines or products.

India's exports to Latin America have increased to $17.7 billion in 2022-23 compared to $15 billion in 2021-22. Imports, on the other hand, rose to $22 billion in the last fiscal against $21.74 billion in 2021-22. The bilateral trade between India and Brazil has increased to $16.6 billion in 2022-23 from $12.2 billion in 2021-22.

The CNX Nifty is currently trading at 19924.15, up by 104.20 points or 0.53% after trading in a range of 19865.35 and 19939.20. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 3.90%, Apollo Hospital up by 2.05%, HDFC Life Insurance up by 1.76%, Tata Steel up by 1.62% and Wipro up by 1.57%. On the flip side, Indusind Bank down by 0.47%, Power Grid Corporation down by 0.31%, ONGC down by 0.22%, Cipla down by 0.19% and Coal India down by 0.14% were the top losers.

Asian markets are trading mixed; Nikkei 225 slipped 159.47 points or 0.49% to 32,447.37, Hang Seng declined 305.91 points or 1.71% to 17,896.16 and Taiwan Weighted lost 124.42 points or 0.75% to 16,451.60. On the flip side, Straits Times rose 3.41 points or 0.11% to 3,211.16, Shanghai Composite strengthened 17.73 points or 0.57% to 3,134.45, Jakarta Composite gained 22.82 points or 0.33% to 6,947.60 and KOSPI increased 8.28 points or 0.33% to 2,555.96.