Markets trim opening gains in early deals ahead of CPI, IIP data

Indian equity benchmarks continued their bull-run with positive start on Tuesday as Nifty hits a record high for the second day and open at 20,110.35, while Sensex above 67,300 mark, amid overnight gains on Wall Street. Soon, markets trimmed some of their opening gains but continue to trade higher with decent gains in the range of 0.20-0.30% in early deals. Traders avoided to take any long position ahead of the India’s August consumer inflation and July Index of Industrial Production (IIP) data, which will be released after market hours, for more directional cues. There are expectations that August retail inflation to have cooled down from a 15-month high of 7.44 per cent in July as vegetable prices moderated. Some support came in amid foreign fund inflows. Provisional data from the National Stock Exchange (NSE) showed that foreign institutional investors (FII) purchased shares worth Rs 1,473.09 crore on September 11. However, broader indices - BSE Mid and Small cap are underperforming larger peers with cut of around one and half a percent.

On the global front, Asian markets are trading mixed amid easing concerns about the outlook for interest rates after reports suggested a shift in the US Fed's stance on rates. Traders also remain cautious ahead of a slew of key economic data from the U.S., Europe and China later in the week. Back home, stocks related to steel are in focus as India imposed an anti-dumping duty on some Chinese steel for five years, according to a government notification, following concern raised by the steel industry over potential dumping by Chinese sellers. In stock specific development, L&T scaled a new high after the company raised its buyback price to Rs 3,200 from Rs 3,000 earlier.

The BSE Sensex is currently trading at 67337.24, up by 210.16 points or 0.31% after trading in a range of 67252.94 and 67539.10. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index plunged 1.33%, while Small cap index was down by 1.70%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.55%, Healthcare up by 0.32%, Bankex up by 0.31%, TECK up by 0.16% and IT up by 0.09%, while Utilities down by 1.86%, Power down by 1.85%, PSU down by 1.64%, Telecom down by 1.56% and Realty down by 1.52% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.66%, ICICI Bank up by 1.48%, Sun Pharma up by 0.69%, Infosys up by 0.65% and TCS up by 0.59%. On the flip side, NTPC down by 1.61%, Tata Motors down by 1.06%, Hindustan Unilever down by 0.93%, Power Grid down by 0.91% and Maruti Suzuki down by 0.87% were the top losers.

Meanwhile, expressing optimism over India’s bilateral trade, Commerce and Industry Minister Piyush Goyal has said that the country and Saudi Arabia can look at doubling bilateral trade to $100 billion in the coming years from about $52 billion at present. He said the two countries can also look at a more balanced trade. The minister suggested Saudi Arabia to open an office of their sovereign wealth fund in GIFT city in Gujarat and industry chamber Ficci set up an office in Riyadh in partnership with Invest India, and the commerce ministry to facilitate investments.

He said ‘can we look at India becoming the provider of food security to Saudi Arabia, while Saudi Arabia helps us provide more energy security like oil and fertiliser. So, it will really be a win-win and complimentary relation’. India's exports to Saudi Arabia have increased to $10.72 billion in 2022-23 from $8.8 billion in 2021-22. Imports, on the other hand, have increased to $42 billion in 2022-23 from $34.1 billion in 2021-22, mainly on the back of oil shipments.

Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud is currently on a state visit to India after the G20 Summit concluded on September 10. He is accompanied by a delegation of ministers and businesses. About 50 MoUs worth $3.5 billion between India and Saudi Arabia have been inked. Goyal also sought investments from Saudi firms. He said ‘the large demographic dividend that India offers, the aspirational billion plus people is a huge opportunity for investors not to miss’.

The CNX Nifty is currently trading at 20036.90, up by 40.55 points or 0.20% after trading in a range of 20011.25 and 20110.35. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.76%, Divi's Lab up by 2.41%, Dr. Reddy's Lab up by 1.54%, ICICI Bank up by 1.41% and Sun Pharma up by 0.84%. On the flip side, Adani Ports & SEZ down by 1.96%, BPCL down by 1.86%, Adani Enterprises down by 1.75%, NTPC down by 1.60% and Coal India down by 1.49% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 255.65 points or 0.78% to 32,723.41, Taiwan Weighted rose 127.71 points or 0.77% to 16,560.66, Hang Seng advanced 4.32 points or 0.02% to 18,100.77 and Shanghai Composite added 1.25 points or 0.04% to 3,144.03. On the other hand, Jakarta Composite slipped 27.59 points or 0.4% to 6,935.80, KOSPI fell 13.78 points or 0.54% to 2,543.10 and Straits Times was down by 4.6 points or 0.14% to 3,213.68.