Bourses trade at day’s high levels in late afternoon session

Indian equity markets traded at day’s high levels in late afternoon session amid value buying. The broader indices, the BSE Mid cap index and Small cap index traded with healthy gains. Traders took note of report that Ministry of Electronics and Information Technology will organise a global AI summit on July 3-4 to discuss issues related to artificial intelligence with India firmly committed to ethical and inclusive growth of this new-age technology. Through the 'Global IndiaAI Summit 2024', India aspires to establish itself as a global leader in AI innovation, ensuring that AI benefits are accessible to all and contribute to the nation's socio-economic development. Meanwhile, seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.3 in June 2024 as against 57.5 in May 2024, thus indicating a sharper improvement in business conditions.

On the global front, Asian markets were trading mostly in green as investors reacted to in-line U.S. inflation reading, mixed Chinese data and the results of the first round of voting for the French National Assembly. European markets were trading higher as the first round of voting left Le Pen's National Rally looking short of securing a majority in parliament.

The BSE Sensex is currently trading at 79409.99, up by 377.26 points or 0.48% after trading in a range of 78971.79 and 79521.67. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.84%, while Small cap index was up by 1.48%.

The top gaining sectoral indices on the BSE were IT up by 1.82%, TECK up by 1.42%, Basic Materials up by 0.99%, Telecom up by 0.88% and FMCG was up by 0.82%, while Utilities down by 0.61%, Power down by 0.52%, Realty down by 0.16% and PSU was down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.75%, Bajaj Finance up by 2.26%, Ultratech Cement up by 2.19%, TCS up by 1.70% and Infosys up by 1.47%. On the flip side, NTPC down by 2.43%, Larsen & Toubro down by 0.66%, Indusind Bank down by 0.61%, SBI down by 0.60% and Axis Bank down by 0.56% were the top losers.

Meanwhile, recovering some of the ground lost in May, India's manufacturing sector growth improved in the month of June, as buoyant demand conditions spurred the expansions in new orders, output and buying levels. Concurrently, firms raised employment at the fastest rate seen in more than 19 years of data collection. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.3 in June 2024 as against 57.5 in May 2024, thus indicating a sharper improvement in business conditions. The PMI was comfortably above its long-run average.

Manufacturing output increased at a sharp pace that was faster than in May, as underlying demand remained favourable and new business continued to flow in. The performance of the consumer goods industry was especially strong, although substantial increases were also noted in the intermediate and investment goods categories. The survey report further noted that staff expenses reportedly intensified in June, which coupled with rising material and transportation costs caused another overall increase in operating expenses. 

On the inflation front, the rate of input price inflation eased since May, but was nonetheless among the highest since August 2022. A demand environment conducive to growth allowed manufacturers in India to share additional cost burdens with their clients. Selling charges were raised to the greatest extent in over two years. Besides, stocks of purchased materials rose at a near-record pace, supported by another improvement in suppliers' delivery times. Finished goods inventories decreased further as firms often met sales through warehoused items.

The CNX Nifty is currently trading at 24130.80, up by 120.20 points or 0.50% after trading in a range of 23992.70 and 24152.40. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.89%, Wipro up by 2.83%, Bajaj Finance up by 2.52%, Grasim Industries up by 2.22% and Ultratech Cement up by 2.04%. On the flip side, NTPC down by 2.46%, Dr. Reddy's Lab down by 0.88%, Apollo Hospital down by 0.83%, ONGC down by 0.71% and Eicher Motors down by 0.70% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite gained 71.52 points or 1.01% to 7,135.10, Nikkei 225 surged 47.98 points or 0.12% to 39,631.06, Shanghai Composite strengthened 27.33 points or 0.92% to 2,994.73, Taiwan Weighted added 26.32 points or 0.11% to 23,058.57, KOSPI increased 6.49 points or 0.23% to 2,804.31 and Straits Times was up by 5.75 points or 0.17% to 3,338.55.  Hang Seng declined 0 points or 0% to 17,718.61

European markets were trading higher; UK’s FTSE 100 increased 34.06 points or 0.42% to 8,198.18, France’s CAC rose 121.28 points or 1.6% to 7,600.68 and Germany’s DAX was up by 90.76 points or 0.5% to 18,326.21.