Indian equity markets trade higher in early deals on Tuesday

Indian equity markets magnified their last session’ s gains with positive opening and are trading higher by over quarter a percent in early deals on Tuesday on firm global cues. Meanwhile, broader indices were also trading in green. Buying in Titan, Wipro, Mahindra & Mahindra and Power Grid companies' stocks helped the markets to trade higher. Sentiments got boost as President of the Confederation of Indian Industry (CII) said that within a few years, India will undoubtedly be among the world’s top three economies. Some support also came in as India's foreign exchange reserves jumped $4.307 billion to touch a new lifetime high of $655.817 billion during the week that ended June 7, data from the Reserve Bank of India (RBI) showed. The reserves have been rising on and off for a long time now. So far in 2024, they have risen over $30 billion, on a cumulative basis. Back home, on the BSE sectoral front, traders were seen pilling up position in Telecom, Consumer Durables, Realty, PSU and Consumer Disc, while selling was witnessed only in Healthcare. 

On the global front, Asian markets were trading mostly in green following positive cues from US markets. the US markets ended higher on Monday amid the New York Fed said its general business conditions index climbed to a negative 6.0 in June from a negative 15.6 in May. In the stock specific development, Hindustan Aeronautics soared on report that the Ministry of Defense has issued a request for procurement of 156 Light Combat Helicopter.

The BSE Sensex is currently trading at 77231.76, up by 238.99 points or 0.31% after trading in a range of 77071.44 and 77326.80. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.66%.

The top gaining sectoral indices on the BSE were Telecom up by 1.38%, Consumer Durables up by 1.29%, Realty up by 1.10%, PSU up by 0.89% and Consumer Disc up by 0.82%, while Healthcare down by 0.24% was the only losing index on BSE.

The top gainers on the Sensex were Titan up by 2.71%, Wipro up by 2.64%, Mahindra & Mahindra up by 2.24%, Power Grid Corp up by 1.21% and Tech Mahindra up by 1.20%. On the flip side, Maruti Suzuki down by 1.95%, TCS down by 0.39%, Ultratech Cement down by 0.36%, Kotak Mahindra Bank down by 0.31% and ICICI Bank down by 0.13% were the top losers.

Meanwhile, Chief Economic Adviser (CEA) V Anantha Nageswaran has said that as India tries to grow faster, the country needs to grapple with unfavourable factors like slowing globalisation, divisive world politics and the raging issue of climate change.

He stated China, which grew at almost double digits between 1980 and 2015, did not have to contend with these factors during its high growth phase. Between 1980 and 2015, China was blessed with very strong globalisation, global politics not being as divisive and polarising, and the world not being as conflict-ridden.

Making it clear that India has 'troubled relations' with China, the CEA asked the auto industry to reflect on the growing reliance on China, given the northern neighbour's strengths in electric mobility and the imports we have to undertake to feed the fashion of the day. He noted ‘We should not be substituting our dependence on Arab nations for crude oil to another country with which India has had troubled relations.’

The CNX Nifty is currently trading at 23544.05, up by 78.45 points or 0.33% after trading in a range of 23499.70 and 23573.85. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.72%, Titan up by 2.60%, Mahindra & Mahindra up by 1.91%, Adani Enterprises up by 1.70% and LTIMindtree up by 1.50%. On the flip side, Maruti Suzuki down by 1.94%, Dr. Reddy's Lab down by 1.10%, Divi's Lab down by 0.40%, Apollo Hospital down by 0.39% and Kotak Mahindra Bank down by 0.39% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite strengthened 10.72 points or 0.35% to 3,026.61, Straits Times rose 4.07 points or 0.12% to 3,301.62, KOSPI increased 23.79 points or 0.86% to 2,767.89, Nikkei 225 surged 332.57 points or 0.87% to 38,435.01 and Taiwan Weighted added 224.31 points or 0.99% to 22,720.84. However, Hang Seng declined 64.1 points or 0.36% to 17,872.02.