Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Oil & Gas, Capital Goods and Industrials stocks. Sentiments remained positive as data of the commerce ministry showed exports from special economic zones (SEZs) rose by over 4 per cent to $163.69 billion in 2023-24 even though the country's total shipments dipped by more than 3 per cent in the last fiscal. Exports from these zones stood at $157.24 billion in 2022-23 and $133 billion in 2021-22. Traders also awaited the India’s Consumer Price Index (CPI) inflation and Index of Industrial Production (IIP) data to be out later in the day. On the sectoral front, automobile industry stocks remained in focus after industry body SIAM said passenger vehicle wholesales in India increased 4 per cent year-on-year in May to 347,492 units, as compared to the same month last year. Overall passenger vehicle (PV) dispatches from companies to dealers stood at 334,537 units in May 2023. On the global front, Asian markets are trading mostly in red after data showed China’s consumer prices still remained soft, while the dollar held firm ahead of a key U.S. inflation report and Federal Reserve policy decision that would set the near-term course for interest rates. 

The BSE Sensex is currently trading at 76892.72, up by 436.13 points or 0.57% after trading in a range of 76553.53 and 76967.73. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.84%, while Small cap index was up by 0.85%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.31%, Capital Goods up by 1.22%, Industrials up by 1.21%, Energy up by 1.14% and Telecom up by 0.98%, while FMCG down by 0.28% and Consumer Durables down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 1.40%, HCL Technologies up by 1.34%, Tata Motors up by 1.31%, HDFC Bank up by 1.17% and ICICI Bank up by 1.05%. On the flip side, Asian Paints down by 0.82%, Titan Company down by 0.68%, Hindustan Unilever down by 0.64%, Mahindra & Mahindra down by 0.53% and ITC down by 0.20% were the top losers.

Meanwhile, the rating agency -- India Ratings and Research (Ind-Ra) in its latest report has said that the steel demand is expected to grow in the range of 9-12 per cent during the ongoing 2024-25 fiscal. It stated the demand will be supported by steady growth in the end-user industries such as automobile and infrastructure sectors.

The agency further said that it expects the global steel demand to be steady with some moderation in China demand due to its transition to low carbon initiatives and moderate demand from the European Union (EU) but supported by growth in emerging economies such as India.

Rohit Sadaka, Director and Head, Materials and Diversified Industrials at Ind-Ra, said Raw material and finished goods prices are expected to be range-bound on a moderate recovery in global demand. Domestic players are likely to see stable credit metrics, due to higher profitability and improved operating cash flows amid debt-led capex.

The CNX Nifty is currently trading at 23391.80, up by 126.95 points or 0.55% after trading in a range of 23295.95 and 23420.35. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.18%, BPCL up by 1.64%, HCL Technologies up by 1.32%, HDFC Bank up by 1.28% and Bajaj Finance up by 1.27%. On the flip side, Britannia Industries down by 1.10%, Asian Paints down by 0.87%, Hindustan Unilever down by 0.81%, Titan Company down by 0.80% and Tata Consumer Product down by 0.65% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 263.24 points or 1.47% to 17,913.10, Jakarta Composite plunged 9.85 points or 0.14% to 6,845.84, Shanghai Composite weakened 0.64 points or 0.02% to 3,027.41 and Nikkei 225 slipped 231.11 points or 0.59% to 38,903.68.

On the flip side, Taiwan Weighted added 256.13 points or 1.18% to 22,048.25, Straits Times rose 5.25 points or 0.16% to 3,314.46 and KOSPI increased 10.05 points or 0.37% to 2,715.37.