Benchmarks trade marginally in green in morning deals

Indian equity benchmarks managed to trade in green in morning deals, supported by gains in realty and FMCG stocks amid positive global cues. Traders took support as an article on the state of the economy published in the Reserve Bank of India’s (RBI's) May Bulletin noted that India is likely to grow by 7.5 per cent in the first quarter of the current financial year (Q1FY25), with rising aggregate demand and non-food spending in the rural economy. However, gains in the markets were limited. Traders took note of a report stating that the net foreign direct investment (FDI) in India -- inflows minus the outflows -- dropped sharply by 62.17 per cent to $10.58 billion in the financial year ended March 31, 2024 (FY24) from $27.98 billion in the previous year, reflecting higher repatriation of capital. This is the lowest amount of net FDI into the country since 2007. On the global front, Asian markets are trading mostly in green even as cautious undertone prevailed ahead of the release of the minutes of the U.S. Federal Reserve's latest monetary policy meeting.

The BSE Sensex is currently trading at 74044.51, up by 91.20 points or 0.12% after trading in a range of 73860.33 and 74165.52. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.19%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Realty up by 1.42%, FMCG up by 1.01%, Capital Goods up by 0.59%, Energy up by 0.53% and Utilities up by 0.41%, while Bankex down by 0.70%, Metal down by 0.32%, Basic Materials down by 0.30%, Auto down by 0.29% and Oil & Gas down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.30%, Reliance Industries up by 1.58%, Infosys up by 1.01%, Ultratech Cement up by 1.00% and ITC up by 1.00%. On the flip side, Sun Pharma down by 1.63%, SBI down by 1.46%, Tata Steel down by 1.15%, Mahindra & Mahindra down by 0.92% and Axis Bank down by 0.90% were the top losers.

Meanwhile, domestic rating agency ICRA has projected India's GDP growth to moderate to a four quarter low of 6.7 per cent in March quarter of 2023-24 fiscal. For the full 2023-24 fiscal (Q4FY24), it estimates GDP growth to come in at 7.8 per cent. The Indian economy grew 8.2 per cent in the June quarter, 8.1 per cent in the September quarter and 8.4 per cent in the December quarter of 2023-24.

The GDP numbers for the fourth quarter (January-March 2024) and the provisional estimates for the 2023-24 fiscal are scheduled to be released on May 31. India's GDP expanded 6.1 per cent in the March quarter of 2022-23 fiscal, as per May 31, 2023 estimates. The growth for full fiscal 2022-23 was 7 per cent. Further, it said the gap between gross domestic product (GDP) and gross value added (GVA) growth is likely to moderate to 100 basis points (bps) in Q4 FY2024 from the particularly high of 185 bps in the previous quarter. This is on account of an expected lower expansion in the net indirect taxes in the March quarter owing to a narrower dip in the subsidy outgo.

ICRA Chief Economist, Head-Research & Outreach Aditi Nayar said the lower volume growth coupled with diminishing gains from commodity prices dampening the profitability of some of the industrial sectors is expected to dampen India's GVA growth in Q4 FY2024.

The CNX Nifty is currently trading at 22544.50, up by 15.45 points or 0.07% after trading in a range of 22483.15 and 22577.40. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.52%, Hindustan Unilever up by 2.24%, Britannia Industries up by 1.57%, Reliance Industries up by 1.52% and Cipla up by 1.18%. On the flip side, Hindalco down by 1.49%, SBI down by 1.47%, Sun Pharma down by 1.42%, BPCL down by 1.36% and Shriram Finance down by 1.34% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 34.18 points or 0.18% to 19,254.80, Jakarta Composite gained 44.9 points or 0.62% to 7,230.94, Shanghai Composite strengthened 0.51 points or 0.02% to 3,158.48 and Taiwan Weighted added 314.34 points or 1.48% to 21,551.09.

On the flip side, KOSPI dropped 0.31 points or 0.01% to 2,723.87 and Nikkei 225 slipped 329.58 points or 0.85% to 38,617.35.