Bourses trade flat with positive bias in late morning deals

Domestic equity markets traded flat with a positive bias amid volatility in late morning deals. Buying in Larsen & Toubro, Ultratech Cement and TCS companies’ stocks helped indices to trade higher. However, profit booking by investors, following markets’ (Sensex and Nifty) recent milestone of crossing the 67,500 and 20,100 marks, contributed to the current weakness in the market. Meanwhile, 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. On the BSE sectoral front, traders were seen pilling up position in TECK, Bankex, IT, Consumer Disc and Basic Materials, while selling was witnessed in Power, Utilities, PSU, Telecom and Realty. 

On the global front, Asian markets were trading mostly in red as traders await a slew of key economic data from the U.S., Europe and China later in the week, which could have a significant impact on the outlook for interest rates. Back home, in the stock specific development, TVS Supply Chain Solutions slumped after the company’s consolidated net loss widened to Rs 65.3 crore during the first quarter of the current financial year.

The BSE Sensex is currently trading at 67236.43, up by 109.35 points or 0.16% after trading in a range of 66948.18 and 67539.10. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.86%, while Small cap index down by 2.32%.

The top gaining sectoral indices on the BSE were TECK up by 0.12%, Bankex up by 0.11%, IT up by 0.08%, Consumer Disc up by 0.07% and Basic Materials up by 0.05%, while Power down by 2.21%, Utilities down by 2.15%, PSU down by 2.14%, Telecom down by 2.03%, Realty down by 1.95% were the losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.85%, Ultratech Cement up by 1.49%, ITC up by 1.35%, TCS up by 1.18% and Sun Pharma up by 0.94%. On the flip side, Power Grid down by 1.89%, Hindustan Unilever down by 1.41%, NTPC down by 1.19%, Indusind Bank down by 1.03% and Reliance Industries down by 0.93% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that India and the UK have expressed their commitment to an early conclusion of the free trade agreement (FTA) between the two countries. She said there is definitely some discussion on the FTA, especially the investment aspects, which comes under the finance ministry, and the intention on both the sides to expedite the discussion so that some quick agreement could lead to finally signing. She added that so, the keenness on both sides is to conclude the comprehensive free trade agreement between India and the UK as soon as possible.

The minister said the deliberations encompassed collaborations to secure inclusive growth and resilience, advancing climate action and forging partnerships through technology and infrastructure partnership. The UK has expressed its willingness to further expand its footprint in the IFSC-Gujarat International Finance Tec-City (GIFT City) and foster robust Fintech partnership. She also said the success of the UK-India Green Growth Equity Fund is a testament to the efficacy of public-private partnerships in channelling large-scale sustainable finance. 

Sitharaman said both countries announced the launch of the UK India Infrastructure Financing Bridge, a collaborative venture co-led by the Niti Aayog and City of London Corporation to harness collective expertise in planning and implementing major infrastructure projects. She said emerging technologies, such as Artificial Intelligence, Machine Learning and India's new Digital Personal Data Protection Act offer ample opportunities for both nations to collaborate on frameworks for secure and inclusive financial intermediation. 

The CNX Nifty is currently trading at 20016.85, up by 20.50 points or 0.10% after trading in a range of 19914.65 and 20110.35. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 2.89%, Grasim Industries up by 2.54%, Ultratech Cement up by 1.71%, TCS up by 1.41% and Divi's Lab up by 1.28%. On the flip side, BPCL down by 2.43%, Adani Enterprises down by 2.34%, Power Grid down by 1.95%, Apollo Hospital down by 1.89% and Hindustan Unilever down by 1.46% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 15.02 points or 0.08% to 18,081.43, Straits Times fell 6.23 points or 0.19% to 3,212.05, Shanghai Composite weakened 7.1 points or 0.23% to 3,135.68, Jakarta Composite plunged 21.07 points or 0.3% to 6,942.32 and KOSPI dropped 16.00 points or 0.63% to 2,540.88. However, Nikkei 225 surged 321.34 points or 0.99% to 32,789.10 and Taiwan Weighted added 139.76 points or 0.85% to 16,572.71.