Domestic indices maintain gains in early noon session

Domestic equity indices maintained their gains in early noon session as market participants indulged in enlarging their positions. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated in the rally. Positive cues from other Asian markets also supported domestic sentiments. Sentiments got boost as private report said the Indian economy is likely to grow 6.7% in FY24, staying resilient despite external headwinds as domestic demand and improving investments provide support. Steel industry related stocks were in focus as Union minister Faggan Singh Kulaste said the government is working on Production Linked Incentive (PLI) scheme 2.0 as well as looking at ways to ensure adequate raw material supply for the steel sector in 2024. 

On the global front, Asian markets were trading mostly in green amid a holiday-shortened week. Back home, on the BSE sectoral front, traders were seen pilling up position in PSU, Energy, Oil & Gas, Utilities and Metal, while selling was witnessed only in IT and TECK. 

The BSE Sensex is currently trading at 71424.91, up by 317.95 points or 0.45% after trading in a range of 71012.08 and 71471.29. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.78%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were PSU up by 1.58%, Energy up by 1.46%, Oil & Gas up by 1.44%, Utilities up by 1.34%, Metal up by 1.22% while, IT down by 0.38%, TECK down by 0.19% were the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.18%, Mahindra & Mahindra up by 1.75%, Wipro up by 1.60%, Tata Steel up by 1.39% and Bharti Airtel up by 1.28%. On the flip side, Infosys down by 1.17%, Bajaj Finserv down by 0.77%, Bajaj Finance down by 0.30%, TCS down by 0.28% and Tata Motors down by 0.23% were the top losers.

Meanwhile, Credit rating agency ICRA in its latest report has said that the domestic jewellery retail industry, in value terms, is expected to grow at 10-12 per cent during the current financial year (FY24) mainly on account of increase in gold prices. In the last financial year (FY23), the industry had grown by more than 15 per cent. 

According to the report, demand volumes remained stable in the current festive season despite higher prices. It said organised jewellery retailers are expected to outperform the industry over the medium term, driven by planned retail expansion and tailwinds from the accelerated formalisation of the trade. After remaining volatile between December 2022 to April 2023, gold prices were relatively stable in the range of Rs 5,600 to Rs 5,700 per gram in the first half of the current fiscal. This was almost 14 per cent higher as compared to the price levels in the preceding first half.

The report further said the elevated price levels supported the revenue expansion of most jewellery retailers in the face of muted volume growth on a high base and persistent inflation. It also projected that the jewellery industry to grow by 6-8 per cent year-on-year in the second half of the current fiscal due to stable demand. 

The CNX Nifty is currently trading at 21463.60, up by 114.20 points or 0.53% after trading in a range of 21329.45 and 21472.30. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 3.55%, Hero MotoCorp up by 3.12%, Adani Enterprises up by 2.19%, NTPC up by 2.16% and Coal India up by 1.89%. On the flip side, Infosys down by 1.27%, Bajaj Finserv down by 0.80%, Bajaj Finance down by 0.28%, TCS down by 0.26% and Tata Motors down by 0.23% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 51.82 points or 0.16% to 33,305.85, Taiwan Weighted added 146.89 points or 0.83% to 17,751.73, Straits Times rose 0.02 points or 0% to 3,140.34 and KOSPI increased 3.21 points or 0.12% to 2,602.72. However, Shanghai Composite weakened 18.67 points or 0.64% to 2,900.14.