Markets trade firm in early deals; Nifty above 20,150 mark

Indian equity benchmarks extend previous session’s northward rally with gap-up opening following overnight gains on Wall Street as well as mostly positive cues from Asian counterparts. Domestic markets are trading firm in early deals with notable gains of around half a percent each led by buying in metal and IT stocks. Sensex and Nifty are hovering above their crucial 67,700 and 20,150 levels, respectively. Some support came in with report that Indian information technology (IT) services companies, such as Tata Consultancy Services, Infosys, Wipro, and HCLTech, have emerged as the most consistent baggers of foreign exchange. Investors are eyeing the wholesale price index (WPI) data to be out later in the day for more directional cues.

On the global front, most of the Asian markets are trading higher as traders figured a small upside surprise for US inflation was unlikely to push up interest rates and turned their focus to a European Central Bank meeting later in the session. Back home, steel industry stocks are buzzing as ratings agency ICRA raised its Financial Year 2023-24 (FY24) forecast for domestic steel demand to 9-10 per cent on the back of government capital expenditure (capex). In stock specific development, Bombay Dyeing zoomed after it said it will sell a 22-acre land parcel in central Mumbai to Japan’s Sumitomo Realty & Development Company for Rs 5,200 crore.

The BSE Sensex is currently trading at 67748.37, up by 281.38 points or 0.42% after trading in a range of 67581.34 and 67771.05. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.00%, while Small cap index was up by 1.46%.

The top gaining sectoral indices on the BSE were Realty up by 1.85%, Metal up by 1.57%, PSU up by 1.17%, IT up by 1.11% and Utilities up by 1.03%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Tech Mahindra up by 2.19%, Tata Steel up by 1.89%, Wipro up by 1.48%, Power Grid up by 1.09% and HCL Technologies up by 1.05%. On the flip side, Bajaj Finance down by 0.11%, ITC down by 0.03%, Bharti Airtel down by 0.01% and Sun Pharma down by 0.01% were the top losers.

Meanwhile, praising India’s Presidency of the G20, the UN Secretary-General Antonio Guterres has highlighted that New Delhi did its best to have the voice of the Global South represented and put the development agenda at the centre of discussion during its year-long leadership of the grouping. He said ‘I'd like to say and I believe I should pay tribute to the Indian presidency. The Indian presidency did its best in order to have the South's voice represented and did its best to put the development agenda in the center of the discussions of the G20’. He added ‘Of course, the conclusions are what they are. They depend on what countries are ready to accept. But I think that effort needs to be underlined’.

He said that the ‘simple fact that there being a consensus’ on adopting the declaration means that there was a compromise and ‘compromise is something that is essential in present days’. He said ‘This is a time to come together for real, practical solutions. It is time for compromise for a better tomorrow. Politics is compromise. Diplomacy is compromise. Effective leadership is compromise. If we want a future of peace and prosperity based on equity and solidarity, leaders have a special responsibility to achieve compromise in designing our common future for our common good. Next week here in New York is the place to start’.

At G20 Summit, PM Narendra Modi had announced the Global Biofuels Alliance (GBA) will accelerate sustainable biofuel deployment and support the global energy transition. GBA will spawn international cooperation especially among agriculturally endowed countries for furthering the goals of inclusive and green growth. India’s net carbon zero goal of 2070 will also receive a fillip. 

Also, Prime Minister had announced a shipping and rail transportation corridor linking countries across the Middle East, South Asia and Europe at G20 Summit. Narendra Modi hosted leaders of the world's biggest economies, including US President Joe Biden, French President Emmanuel Macron, Saudi Arabia Crown Prince Mohammed bin Salman, UK Prime Minister Rishi Sunak, Brazilian President Luiz Inacio Lula da Silva and Russian Foreign Minister Sergey Lavrov among others.

The CNX Nifty is currently trading at 20156.25, up by 86.25 points or 0.43% after trading in a range of 20107.60 and 20167.65. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.17%, Tech Mahindra up by 2.06%, UPL up by 1.92%, Tata Steel up by 1.81% and Divi's Lab up by 1.61%. On the flip side, Bajaj Finance down by 0.28%, Tata Consumer Products down by 0.25%, ITC down by 0.06% and Bharti Airtel down by 0.02% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 453.55 points or 1.37% to 33,160.07, Taiwan Weighted jumped 181.49 points or 1.08% to 16,763.00, KOSPI rose 25.94 points or 1.01% to 2,560.64, Jakarta Composite gained 18.47 points or 0.27% to 6,953.95, Straits Times strengthened 16.14 points or 0.5% to 3,235.07 and Shanghai Composite added 1.36 points or 0.04% to 3,124.43, while Hang Seng was down by 39.68 points or 0.22% to 17,969.54.