Domestic indices add more points in late morning deals

Domestic equity indices added more points in late morning deals on account of buying by funds and retail investors. Hectic buying in banking industry related stocks namely HDFC Bank, ICICI Bank and Axis Bank helped the markets to magnify their gains.  Meanwhile, broader indices were also trading in fine fettle with BSE Mid cap index and Small cap index gaining in the range of 0.80-1.35%. Falling 10-year U.S. Treasury yield supported domestic sentiments. Further, sentiments got boost as the International Monetary Fund (IMF) raised India’s growth projection for 2024-25 (FY25) by 20 basis points (bps) to 6.5 per cent in its World Economic Outlook (WEO) update, citing buoyant domestic spending and improved global growth prospects. Fertilisers industry related stocks were in focus after the Ministry of Chemicals and Fertilisers said that the government has allowed a profit margin of up to 12 per cent for manufacturers of potassium and potassic fertilisers as part of guidelines issued to evaluate the reasonableness of maximum retail prices for these fertilisers.

On the global front, Asian markets were trading mixed after the manufacturing sector in China continued to contract in January, albeit at a slower pace, the latest survey from the National Bureau of Statistics revealed with a manufacturing PMI score of 49.2. Back home, on the sectoral front, traders were seen pilling up position in Healthcare, Bankex, Basic Materials, Auto and Consumer Disc, while selling was witnessed in Capital Goods, Industrials, Oil & Gas and Consumer Durables. 

The BSE Sensex is currently trading at 71697.76, up by 557.86 points or 0.78% after trading in a range of 70846.04 and 71698.51. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.80%, while Small cap index up by 1.32%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.67%, Bankex up by 1.60%, Basic Materials up by 1.14%, Auto up by 0.79% and Consumer Disc up by 0.68%, while Capital Goods down by 1.63%, Industrials down by 0.75%, Oil & Gas down by 0.22% and Consumer Durables down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.42%, Sun Pharma up by 2.19%, Tata Motors up by 2.03%, HDFC Bank up by 1.76% and ICICI Bank up by 1.74%. On the flip side, Larsen & Toubro down by 4.50%, Titan down by 1.52%, NTPC down by 0.49%, Hindustan Unilever down by 0.16% and Wipro down by 0.08% were the top losers.

Meanwhile, Indian Construction Equipment Manufacturers Association (ICEMA) in its latest data has said that India's construction equipment (CE) industry has witnessed a 30 per cent rise in sales to 36,055 units in the third quarter of the current fiscal (Q3FY24). Of the overall sales for Q3FY24, 33,135 units were sold domestically and 2,920 units were exported. The construction equipment industry had sold 27,817 units in the third quarter of the previous fiscal. 

According to the data, sales of material handling equipment rose 46 per cent to 4,482 units and concrete equipment sales grew 43 per cent to 3,840 units during the period. Road construction and material processing equipment sales stood at 1,958 and 688 units, registering an increase of 38 per cent and 18 per cent, respectively.

ICEMA President V Vivekanand requested the government to ensure that the steady pace of execution of projects is maintained, which is critical for the consistent growth and development of the construction equipment industry.

The CNX Nifty is currently trading at 21665.00, up by 142.90 points or 0.66% after trading in a range of 21448.85 and 21674.15. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 3.83%, Axis Bank up by 2.38%, Sun Pharma up by 2.32%, Tata Motors up by 2.08% and Eicher Motors up by 2.03%. On the flip side, Larsen & Toubro down by 4.48%, Titan down by 1.52%, Hero MotoCorp down by 1.42%, Britannia down by 0.98% and ONGC down by 0.80% were the top losers.

Asian markets were trading mixed; Hang Seng declined 214.99 points or 1.39% to 15,488.46, Taiwan Weighted lost 145.07 points or 0.81% to 17,889.56, KOSPI dropped 4.03 points or 0.16% to 2,494.78 and Shanghai Composite weakened 26.81 points or 0.96% to 2,803.72. However, Nikkei 225 surged 179.26 points or 0.49% to 36,245.12, Straits Times rose 5.34 points or 0.17% to 3,155.38 and Jakarta Composite gained 13.71 points or 0.19% to 7,205.93.