Markets add more gains in late morning deals

Domestic equity markets added gains in late morning deals on account of buying by funds and retail investors. Positive cues from other Asian markets supported domestic sentiments. Buying in TCS, Tech Mahindra, Hindustan Unilever and Infosys companies' stocks helped the markets to enlarge their gains. Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.85-1.35%. Sentiments got boost with report that growth in the Indian manufacturing sector recovered some of the ground lost in May, as the headline Purchasing Managers Index (PMI) figure released by HSBC rose to 58.3 in June from 57.5 in May. The recovery in the sector was based on the back of buoyant demand conditions that spurred the expansions in new orders, output and buying levels.

On the global front, Asian markets were trading in green after China released its official PMI figures on the weekend, with its manufacturing PMI coming in at 49.5, unchanged from May and marking its second straight month in contraction territory. A private survey of manufacturing activity, however, diverged from the official numbers, showing the sharpest improvement in business conditions in three years. The S&P Caixin PMI climbed to 51.8 in June compared with 51.7 in May. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK, Telecom, Metal and Basic Materials, while selling was witnessed in Utilities, Power and Realty. 

The BSE Sensex is currently trading at 79320.88, up by 288.15 points or 0.36% after trading in a range of 78971.79 and 79330.21. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.88%, while Small cap index up by 1.35%.

The top gaining sectoral indices on the BSE were IT up by 1.73%, TECK up by 1.44%, Telecom up by 1.34%, Metal up by 0.88% and Basic Materials up by 0.83%, while Utilities down by 0.47%, Power down by 0.38% and Realty down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.27%, TCS up by 1.67%, Hindustan Unilever up by 1.26%, Infosys up by 1.25% and JSW Steel up by 1.24%. On the flip side, NTPC down by 1.80%, Sun Pharma down by 1.17%, Larsen & Toubro down by 0.86%, Power Grid down by 0.74% and SBI down by 0.62% were the top losers.

Meanwhile, the Ministry of Commerce & Industry in its latest data has showed that the output of eight core industries posted a growth of 6.3 per cent in May 2024 as compared with 5.2 per cent a year ago, on the back of healthy expansion in the production of coal, natural gas, and electricity. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). 

Coal production having 10.33 per cent weight increased by 10.2 per cent in May, 2024 over May, 2023 and its cumulative index increased by 8.9 per cent during April to May, 2024-25 over corresponding period of the previous year.  Electricity generation having 19.85 per cent weight increased by 12.8 per cent in May, 2024 over May, 2023 and its cumulative index increased by 11.6 per cent during April to May, 2024-25 over corresponding period of the previous year. 

Natural Gas production having 6.88 per cent weight increased by 7.5 per cent in May, 2024 over May, 2023 and its cumulative index increased by 8.0 per cent during April to May, 2024-25 over corresponding period of the previous year.  Petroleum Refinery production having 28.04 per cent weight increased by 0.5 per cent in May, 2024 over May, 2023 and its cumulative index increased by 2.2 per cent during April to May, 2024-25 over corresponding period of the previous year. Steel production having 17.92 per cent weight increased by 7.6 per cent in May, 2024 over May, 2023 and its cumulative index increased by 8.2 per cent during April to May, 2024-25 over corresponding period of the previous year.

However, cement production having 5.37 per cent weight declined by 0.8 per cent in May, 2024 over May, 2023 and its cumulative index declined by 0.6 per cent during April to May, 2024-25 over corresponding period of the previous year. Crude Oil production having 8.98 per cent weight declined by 1.1 per cent in May, 2024 over May, 2023, while its cumulative index increased by 0.2 per cent during April-May, 2024-25 over corresponding period of the previous year. Fertilizer production having 2.63 per cent weight declined by 1.7 per cent in May, 2024 over May, 2023 and its cumulative index declined by 1.2 per cent during April to May, 2024-25 over corresponding period of the previous year.

The CNX Nifty is currently trading at 24115.10, up by 104.50 points or 0.44% after trading in a range of 23992.70 and 24116.45. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.48%, Tech Mahindra up by 2.42%, LTIMindtree up by 2.01%, TCS up by 1.74% and Hindustan Unilever up by 1.53%. On the flip side, NTPC down by 1.77%, Apollo Hospital down by 0.97%, Divi's Lab down by 0.95%, Sun Pharma down by 0.85% and Tata Consumer down by 0.77% were the top loser

Asian markets were trading in green; Jakarta Composite gained 54.55 points or 0.77% to 7,118.13, Shanghai Composite strengthened 18.06 points or 0.61% to 2,985.46, Straits Times rose 3.81 points or 0.11% to 3,336.61, KOSPI increased 2.73 points or 0.1% to 2,800.55, Nikkei 225 surged 10.04 points or 0.03% to 39,593.12 and Taiwan Weighted added 26.32 points or 0.11% to 23,058.57.