Indian markets keep heads above water in early afternoon deals

In a volatile session, Indian equity benchmarks were managing to keep their heads above water in early afternoon deals, with both Sensex and Nifty trading higher, aided by positive cues from other Asian markets along with buying at Power and Utilities counters. Traders were optimistic, as the government expanded the list of commodities permitted for derivatives trading to include weather, cement, and skimmed milk powder. As per the notification issued by the Ministry of Finance's Department of Economic Affairs, the Centre said it was expanding the list of commodities in consultation with the Securities and Exchange Board of India (Sebi).

On the global front, Asian markets were trading mostly in green, after the monetary base in Japan was up 2.4 percent on year in February, coming in at 661.668 trillion yen. That was shy of expectations for an increase of 4.7 percent and down from the upwardly revised 4.8 percent gain in January (originally 4.7 percent). Banknotes in circulation fell 0.6 percent on year, while coins in circulation dropped 1.8 percent. Current account balances gained an annual 3.1 percent, including a 3.1 percent gain in reserve balances.

Back home, on the sectoral front, stocks related to the defence industry were in watch, as the government has launched Acing Development of Innovative Technologies with iDEX (ADITI) scheme, with an aim to promote innovations in critical and strategic defence technologies. Under the scheme, start-ups are eligible to receive grant-in-aid of up to Rs 25 crore for their research, development, and innovation endeavours in defence technology.

The BSE Sensex is currently trading at 73918.93, up by 112.78 points or 0.15% after trading in a range of 73747.01 and 73990.13. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.27%, while Small cap index was down by 0.69%.

The top gaining sectoral indices on the BSE were Power up by 2.15%, Utilities up by 2.05%, Oil & Gas up by 1.70%, PSU up by 1.58% and Energy up by 1.45%, while IT down by 0.71%, Basic Materials down by 0.43%, TECK down by 0.39%, Consumer Durables down by 0.33% and FMCG down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 4.56%, Power Grid up by 3.10%, Bharti Airtel up by 1.23%, Sun Pharma up by 1.01% and Reliance Industries up by 0.89%. On the flip side, JSW Steel down by 2.37%, Tata Steel down by 1.13%, Infosys down by 1.12%, Mahindra & Mahindra down by 1.05% and Ultratech Cement down by 0.87% were the top losers.

Meanwhile, global rating agency Moody’s has raised India’s Gross Domestic Product (GDP) growth forecast for 2024 calendar year to 6.8 per cent, from 6.1 per cent estimated earlier, on the back of ‘stronger-than-expected’ economic data of 2023 and fading global economic headwinds. India’s real GDP expanded 8.4 per cent year-over-year in the fourth quarter of calendar year 2023, resulting in a 7.7 per cent growth for full-year 2023. Capital spending by the government and strong manufacturing activity have meaningfully contributed to the robust growth outcomes in 2023. With global headwinds fading, the Indian economy should be able to comfortably register 6-7 per cent real GDP growth. 

According to the report, for 2025, the GDP growth is estimated at 6.4 per cent. It said high-frequency indicators show that the economy’s strong September and December quarter momentum carried into the March quarter of 2024. Robust goods and services tax collections, rising auto sales, consumer optimism and double-digit credit growth suggest urban consumption demand remains resilient. On the supply side, expanding manufacturing and services PMIs add to evidence of solid economic momentum. 

The agency said this year’s interim budget targets capital expenditure allocation of Rs 11.1 lakh crore or 3.4 per cent of GDP in 2024-25 (fiscal year 2025), 16.9 per cent above the 2023-24 estimates. It expects policy continuity after the general election and continued focus on infrastructure development. It also said while private industrial capital spending has been slow to pick up, it is expected to pick up with ongoing supply chain diversification benefits and investors’ response to the government’s Production Linked Incentive scheme to boost key targeted manufacturing industries.

The CNX Nifty is currently trading at 22419.75, up by 41.35 points or 0.18% after trading in a range of 22358.30 and 22440.90. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were NTPC up by 4.54%, Power Grid up by 3.02%, Dr. Reddy's Lab up by 2.49%, BPCL up by 2.46% and ONGC up by 1.99%. On the flip side, JSW Steel down by 2.50%, SBI Life Insurance down by 1.93%, Eicher Motors down by 1.91%, Tata Steel down by 1.42% and Infosys down by 1.15% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 369.38 points or 1.91% to 19,305.31, Shanghai Composite strengthened 10.13 points or 0.33% to 3,037.15, KOSPI increased 31.91 points or 1.19% to 2,674.27 and Nikkei 225 surged 198.41 points or 0.49% to 40,109.23, while Hang Seng declined 60.91 points or 0.37% to 16,528.53, Jakarta Composite plunged 6.08 points or 0.08% to 7,305.83 and Straits Times fell 11.83 points or 0.38% to 3,123.93.