Domestic indices trade in green in afternoon session

Domestic indices were trading in green with gains around quarter a percent in afternoon deals on account of buying in banking stocks namely Indusind Bank and SBI. Positive cues from other Asian markets supported domestic sentiments. Sentiments got boost as Reserve Bank Deputy Governor Michael D Patra said that India will be a $5 trillion economy and the third largest in the world by market exchange rates by 2027, aided by the demographic advantage and pace of financial sector development. The sentiments were further supported by Indian rupee appreciating 18 paise to 82.94 against the dollar at the Interbank Foreign Exchange after JPMorgan said it will include the country's bonds in its emerging market index. 

On the global front, Asian markets were trading mostly in green as the Bank of Japan left its monetary policy unchanged. The central bank kept rates at -0.1%, and capped the 10-year Japanese government bond yield around zero. Back home, on the BSE sectoral front, traders were seen pilling up position in PSU, Bankex, Telecom, Energy and Auto, while selling was witnessed in Healthcare, Consumer Durables, Power, Basic Materials and Utilities. 

The BSE Sensex is currently trading at 66382.47, up by 152.23 points or 0.23% after trading in a range of 66016.31 and 66417.95. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.03%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were PSU up by 0.95%, Bankex up by 0.77%, Telecom up by 0.63%, Energy up by 0.47% and Auto up by 0.41%, while Healthcare down by 1.13%, Consumer Durables down by 0.47%, Power down by 0.45%, Basic Materials down by 0.22% and Utilities down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.51%, SBI up by 2.06%, Maruti Suzuki up by 1.81%, Tech Mahindra up by 1.66% and Mahindra & Mahindra up by 1.46%. On the flip side, Power Grid down by 1.78%, Wipro down by 1.76%, Sun Pharma down by 1.16%, Ultratech Cement down by 1.12% and Titan down by 0.83% were the top losers.

Meanwhile, in a significant development that could pull in foreign funds into India’s debt market, the global financial firm - J P Morgan has said that it is all set to include Indian government bonds into its benchmark Emerging Market index from next year. This move is likely to bring down borrowing cost for the government. The inclusion of the Indian government bonds (IGBs) or government securities (G-Secs) will be staggered over a 10-month period from June 28, 2024 to March 31, 2025, indicating one per cent increment on its index weight.

J P Morgan said India's weight is expected to reach the maximum weight threshold of 10 per cent in the GBI-EM Global Diversified, and around 8.7 per cent in the GBI-EM Global index. This would help attract higher foreign flows, as many overseas funds are mandated to track global indices. It will also help bring in large passive investments from overseas, as a result of which more domestic capital would be available for industry, as crowding out would be reduced.
The inclusion of Indian government bonds in the JPMorgan Government Bond Index-Emerging Markets index could be seen as yet another sign of its growing appeal to global investors as it continues to remain one of the fastest-growing major economies. This development holds significance particularly as various global manufacturing behemoths are looking at India to set up shop as part of their China+1 diversification strategy in a post-pandemic world order.

The CNX Nifty is currently trading at 19782.80, up by 40.45 points or 0.20% after trading in a range of 19664.30 and 19792.15. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.56%, SBI up by 2.06%, Tech Mahindra up by 1.80%, Maruti Suzuki up by 1.79% and Coal India up by 1.60%. On the flip side, Dr. Reddy's Lab down by 2.04%, Wipro down by 1.87%, Power Grid down by 1.66%, Cipla down by 1.42% and Sun Pharma down by 1.20% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 245.11 points or 1.39% to 17,900.52, Taiwan Weighted added 27.81 points or 0.17% to 16,344.48, Straits Times rose 4.54 points or 0.14% to 3,207.35, Shanghai Composite strengthened 42.63 points or 1.38% to 3,127.33 and Jakarta Composite gained 37.39 points or 0.53% to 7,028.86. However, KOSPI dropped 6.82 points or 0.27% to 2,508.15 and Nikkei 225 slipped 168.62 points or 0.52% to 32,402.41.