Sensex, Nifty trade flat with positive bias

Indian equity benchmarks traded flat with positive bias in late morning deals, ahead of the expiry of monthly derivative contracts. Traders took some support with CRISIL’s report stating that India’s current account surplus in the fourth quarter of the 2023-24 fiscal was aided by narrowing of the merchandise trade deficit, an increase in remittances and a surplus in services trade. The country’s current account recorded a surplus of USD 5.7 billion, which is 0.6 per cent of the GDP, in the fourth quarter of the last financial year. However, gains remain capped as traders got cautious with exchange data showing that foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,535.43 crore on Wednesday. On the global front, Asian markets were trading mostly in red, amid much uncertainty about the interest-rate outlook, while traders braced for the release of key U.S. inflation reading, due later in the week for directional cues. 

The BSE Sensex is currently trading at 78756.70, up by 82.45 points or 0.10% after trading in a range of 78467.34 and 79033.91. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.05%.

The top gaining sectoral indices on the BSE were Basic Materials up by 0.61%, Telecom up by 0.41%, Healthcare up by 0.36%, Power up by 0.33% and Utilities up by 0.20%, while Auto down by 0.48%, Consumer Disc down by 0.23%, Consumer Durables down by 0.21%, Capital Goods down by 0.19% and Realty down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 3.29%, JSW Steel up by 1.53%, Reliance Industries up by 1.04%, Kotak Mahindra Bank up by 0.74% and Tata Steel up by 0.70%. On the flip side, Maruti Suzuki down by 1.08%, Larsen & Toubro down by 0.98%, HCL Technologies down by 0.85%, Tech Mahindra down by 0.73% and Adani Ports &Special down by 0.54% were the top losers.

Meanwhile, CRISIL in its latest report has said that India’s current account surplus in the fourth quarter of the 2023-24 fiscal was aided by narrowing of the merchandise trade deficit, an increase in remittances and a surplus in services trade. The country’s current account recorded a surplus of USD 5.7 billion, which is 0.6 per cent of the GDP, in the fourth quarter of the last financial year. It was in deficit of USD 8.7 billion, equivalent to one per cent of GDP, in the third quarter of the 2023-24 fiscal. In the corresponding fourth quarter of 2022-23, the country’s current account was also in deficit of USD 1.3 billion, which was 0.2 per cent of the GDP. 

It highlighted ‘The improvement in current account balance to 0.6 per cent of GDP surplus in Q4 fiscal 2024, from a deficit of 0.2 per cent of GDP a year ago reflects improvement on all three fronts i.e. merchandise trade deficit narrowed, services trade surplus increased and remittances rose.’ Moreover, it said financial flows also increased leading to accretion in foreign exchange reserves during the fourth quarter amounting to USD 30.8 billion. The country’s foreign reserves, as of June 14, 2024, stood at USD 652.9 billion. The report said even though the FDI inflows continued, there has also been a rise in outward FDI, leading to a reduction in net flows.

It stated healthy momentum in goods exports and expected moderation in imports suggest that the current account deficit (CAD) is likely to remain manageable this financial year (2024-25) as well. It added strong external buffers are crucial at this juncture because of global risks stemming from geopolitical uncertainties, tariff and trade wars have heightened.

The CNX Nifty is currently trading at 23879.25, up by 10.45 points or 0.04% after trading in a range of 23805.40 and 23974.70. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 3.04%, Dr. Reddy's Lab up by 2.22%, Grasim Industries up by 2.18%, JSW Steel up by 1.66% and Reliance Industries up by 0.95%. On the flip side, Maruti Suzuki down by 1.26%, Bajaj Auto down by 1.00%, Coal India down by 0.94%, Larsen & Toubro down by 0.86% and Tech Mahindra down by 0.79% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 339.94 points or 1.88% to 17,749.99, Shanghai Composite weakened 11.62 points or 0.39% to 2,960.91, KOSPI dropped 12.56 points or 0.45% to 2,779.49, Nikkei 225 slipped 368.26 points or 0.93% to 39,298.81 and Taiwan Weighted lost 119.11 points or 0.52% to 22,867.58.

On the flip side, Jakarta Composite gained 53.3 points or 0.77% to 6,958.94 and Straits Times rose 10.22 points or 0.31% to 3,341.92.