Domestic indices trade higher in early deals

Indian equity markets have opened Wednesday’s trading session at a record high on firm global cues. Markets are trading higher in early deals on account of hectic buying in banking industry related stocks namely ICICI Bank, Indusind Bank, Kotak Mahindra, Axis Bank. Sentiments got boost as the government's direct tax collection in the April 1-June 17, 2024 period, net of refunds, increased 20.99% year-on-year to Rs 4.62 lakh crore. Further, foreign fund inflows aided domestic sentiments. Foreign institutional investors (FIIs) were net buyers of stocks worth Rs 2,569.40 crore on June 18.  Meanwhile, traders took note of report that with a view to facilitate outbound shipments, the Directorate General of Foreign Trade (DGFT) under the Commerce Ministry has proposed to amend the export obligation period for certain sectors such as spices, pharmaceuticals and tea.

On the global front, Asian markets are trading mostly higher in early deals on Wednesday following positive cues from the US markets overnight. Traders in Asia assessed Japan’s trade data for May, which showed exports grew 13.5% year on year, while imports grew 9.5% during the same period. The US markets ended higher on Tuesday following the release of a mixed batch of U.S. economic data. Back home, in the stock specific development, Indus Tower plunged on private report that Vodafone Group will sell a 10 percent stake in the company for up to $1.1 billion to repay debt.

The BSE Sensex is currently trading at 77435.04, up by 133.90 points or 0.17% after trading in a range of 77332.20 and 77581.46. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.79%, while Small cap index down by 1.07%.

The only gaining sectoral indices on the BSE were Bankex up by 0.74% and IT up by 0.01%, while Realty down by 2.83%, Telecom down by 1.81%, Utilities down by 1.57%, Consumer Durables down by 1.46% and Power down by 1.37% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.63%, Indusind Bank up by 1.52%, Kotak Mahindra Bank up by 0.86%, Axis Bank up by 0.71% and JSW Steel up by 0.61%. On the flip side, Titan down by 2.00%, NTPC down by 1.18%, Power Grid Corp down by 1.12%, Bajaj Finance down by 0.93% and Larsen & Toubro down by 0.81% were the top losers.

Meanwhile, as voices for changing the policy stance grow, the Reserve Bank of India(RBI) Governor Shaktikanta Das said it is 'too premature' to make the shift and stressed that the apex bank has to 'shun' any adventurism on the rates front, given the pressure from food inflation. Das acknowledged that there is a 'clamour' to change the stance but RBI wants clear evidence that inflation is moderating perhaps a little faster'.

He said even though inflation has cooled in the recent past and is expected to go down further, there is a possibility of the headline number touching 5 per cent as well in the near future given a slew of pressures. He said even though core inflation has moderated to comfortable levels, food inflation has been at or above 8 per cent in the last few readings, and added that adverse aspects like severe heat conditions make it uncertain.

Further, he said that the growth momentum continues to be strong, and sounded confident of the economy expanding at a conservative RBI projection of 7.2 per cent. Besides, he said that the Reserve Bank of India is monitoring the high trading volumes in the futures and options segment along with Sebi but any action on it will be taken by the markets regulator.

The CNX Nifty is currently trading at 23601.85, up by 43.95 points or 0.19% after trading in a range of 23532.10 and 23630.85. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 1.35%, Indusind Bank up by 1.15%, Kotak Mahindra Bank up by 0.89%, Axis Bank up by 0.74% and JSW Steel up by 0.71%. On the flip side, Titan down by 2.20%, Shriram Finance down by 1.74%, LTIMindtree down by 1.56%, Adani Enterprises down by 1.47% and Coal India down by 1.44% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 345.16 points or 1.89% to 18,260.71, Jakarta Composite gained 31.29 points or 0.46% to 6,766.12, Straits Times rose 9.91 points or 0.3% to 3,311.69, KOSPI increased 25.89 points or 0.93% to 2,789.81, Nikkei 225 surged 106.34 points or 0.28% to 38,588.45 and Taiwan Weighted added 370.7 points or 1.6% to 23,128.13. However, Shanghai Composite weakened 10.22 points or 0.34% to 3,020.03.