Sensex, Nifty off day’s highs in early afternoon deals

Erasing some of their gains, Indian equity benchmarks came off their intraday high points in early afternoon session, as traders booked profits in FMCG stocks. Traders got cautious, as Moody's Ratings in its latest report has said that the BJP-led National Democratic Alliance's (NDA) slim majority in Lok Sabha may delay more far-reaching economic and fiscal reforms that could impede progress on fiscal consolidation. There were also some cautiousness on the street, as the rate-setting panel of RBI on Wednesday started its three-day deliberations to decide the next monetary policy amid expectations of continuation of the current interest rate. Reserve Bank Governor Shaktikanta Das will announce the decisions taken by the Monetary Policy Committee (MPC) on Friday. However, positive cues from other Asian markets along with heavy buying at PSU and Realty counters helped indices to hold notable gains.

On the global front, Asian markets were trading mostly in green, after Japan's total labor cash earnings continued to increase in April, and at the quickest pace in ten months. The report from the Ministry of Health, Labor, and Welfare showed that total earnings rose 2.1 percent year-over-year in April, faster than the revised 1.0 percent growth in March. Further, this was the steepest increase since June 2023, when earnings had risen 2.3 percent.

The BSE Sensex is currently trading at 74829.47, up by 447.23 points or 0.60% after trading in a range of 74526.06 and 75297.73. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 2.28%, while Small cap index was up by 2.84%.

The top gaining sectoral indices on the BSE were PSU up by 4.19%, Realty up by 3.84%, Industrials up by 3.66%, Capital Goods up by 3.42% and Power up by 3.39%, while FMCG down by 0.22% was the lone losing index on BSE.

The top gainers on the Sensex were SBI up by 3.97%, NTPC up by 3.04%, HCL Tech. up by 2.94%, Larsen & Toubro up by 2.34% and Tata Steel up by 2.22%. On the flip side, Hindustan Unilever down by 2.15%, Mahindra & Mahindra down by 2.00%, Sun Pharma down by 1.63%, Indusind Bank down by 1.23% and Nestle down by 1.16% were the top losers.

Meanwhile, with an aim to aid organisations and startups through the adoption of Industry emerging technologies, the Department of Telecommunications (DoT) is planning a new initiative. It has called for a proposal for ‘Industry 4.0 a baseline Survey among MSMEs’ that aligns with the broader vision of fostering digital transformation and preparing industries for the advent of 5G and 6G technologies.

The target of the survey will be on understanding the challenges faced by MSMEs in adapting to Industry 4.0 and utilizing advanced technologies and it will aim to lay the groundwork for a robust ecosystem capable of capitalizing on the capabilities offered by AI, IoT, cloud computing and the integration of 5G and 6G networks. This would include identifying sector-specific needs - in at least 10 sectors - and preferences, recognizing the diverse landscape of MSMEs and providing targeted support to foster innovation and competitiveness. 

The survey will, over a 60-day period, seek to cover five sectors each in North and Southern parts of India. The key recommendations will form the platform for policy interventions to achieve the transformative adoption of Industry 4.0 leading to enhanced competitive positioning and survivability of MSMEs. Organizations and Startups are invited to submit proposals by June 11, 2024 to participate in this transformative survey.

The CNX Nifty is currently trading at 22756.65, up by 136.30 points or 0.60% after trading in a range of 22642.60 and 22910.15. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 4.66%, SBI up by 3.89%, HCL Tech. up by 2.93%, NTPC up by 2.93% and Coal India up by 2.53%. On the flip side, Hero MotoCorp down by 2.35%, Hindustan Unilever down by 2.13%, Mahindra & Mahindra down by 1.98%, Hindalco down by 1.65% and Sun Pharma down by 1.63% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 7.75 points or 0.11% to 6,955.42, Straits Times rose 4.53 points or 0.14% to 3,334.54, Nikkei 225 surged 213.34 points or 0.55% to 38,703.51 and Taiwan Weighted added 417.82 points or 1.91% to 21,902.70, while Hang Seng declined 5.3 points or 0.03% to 18,419.66 and Shanghai Composite weakened 15.35 points or 0.5% to 3,050.05.