Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Banking, Telecom and Healthcare stocks and firm global market trends. Sentiments remained positive as Union Minister JP Nadda revealed that India has surpassed the United Kingdom to become the fifth largest economy in the world, and is projected to soon secure the third position. He noted that the Indian economy has grown by 8.2% in 2023-24, making it the fastest-growing major economy this fiscal year. Some support also came as Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister of India, has forecasted reaching a $4 trillion Gross Domestic Product (GDP) milestone this year, outpacing global growth rates. Currently, in US dollar terms, India is the fifth largest economy with a size of about $3.7 trillion in nominal terms. Meanwhile, the RBI has proposed rationalising regulations that cover export and import transactions with an aim to promote ease of doing business and empower banks to provide more efficient service to their foreign exchange customers. On the global front, Asian markets are trading mostly in green on growing optimism that the U.S. Federal Reserve will cut interest rates in September. 

The BSE Sensex is currently trading at 79910.31, up by 468.86 points or 0.59% after trading in a range of 79754.95 and 80074.30. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.58%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Bankex up by 1.55%, Telecom up by 1.01%, Healthcare up by 0.78%, PSU up by 0.73% and Industrials up by 0.70%, while IT down by 0.19%, Oil & Gas down by 0.18%, Energy down by 0.10% and TECK down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 3.00%, Axis Bank up by 1.80%, ICICI Bank up by 1.24%, Kotak Mahindra Bank up by 0.94% and JSW Steel up by 0.80%. On the flip side, TCS down by 1.15%, Reliance Industries down by 0.71%, Tata Motors down by 0.50%, HCL Technologies down by 0.38% and Larsen & Toubro down by 0.38% were the top losers.

Meanwhile, the Ministry of Railways has said that Indian Railways reported a record freight loading of 135.46 million tonnes (MT) in June 2024, marking an increase of 12.40 MT compared to the same period last year. It stated this growth represents a robust improvement of approximately 10.07 per cent year-on-year, highlighting the railways’ enhanced operational efficiency and increased demand for freight services.

Financially, Indian Railways also recorded substantial earnings from freight operations during June 2024. The revenue generated amounted to Rs 14,798.11 crore, which reflects a notable increase of Rs 1,481.29 crore or 11.12 per cent compared to the earnings of Rs 13,316.81 Crore in June 2023. This financial achievement underscores the railways’ pivotal role in India’s logistics sector and its contribution to the national economy.

During June 2024, Indian Railways demonstrated its robust logistical capabilities by efficiently handling a diverse array of freight categories, each contributing significantly to the railways’ record-breaking performance. Coal shipments led the tally with 60.27 million tonnes (MT), excluding imported coal, highlighting the railways’ pivotal role in fuel transportation for various industries. Imported coal followed closely with 8.82 MT, underscoring India’s reliance on global energy resources. 

Iron ore transportation amounted to 15.07 MT, emphasizing Indian Railways’ crucial support to the mining and steel sectors. The transportation of pig iron and finished steel reached 5.36 MT, indicating substantial movement within the manufacturing and construction industries. Cement shipments, excluding clinker, totalled 7.56 MT, supporting infrastructure development across the country. Additionally, Indian Railways transported 5.28 MT of clinker, essential for cement production, and 4.21 MT of foodgrains, contributing to food security initiatives. The transportation of fertilizers amounted to 5.30 MT, facilitating agricultural productivity. Mineral oil shipments totalled 4.18 MT, crucial for various industrial and consumer applications.

The CNX Nifty is currently trading at 24267.90, up by 144.05 points or 0.60% after trading in a range of 24207.10 and 24307.25. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 2.90%, Axis Bank up by 1.86%, Tata Consumer Product up by 1.73%, Britannia Industries up by 1.45% and Eicher Motors up by 1.43%. On the flip side, TCS down by 1.26%, Reliance Industries down by 0.65%, Tata Motors down by 0.55%, HCL Technologies down by 0.51% and Hindalco down by 0.49% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 209.38 points or 1.16% to 17,978.52, Jakarta Composite gained 15.4 points or 0.22% to 7,140.54, Straits Times rose 44.48 points or 1.32% to 3,412.38, KOSPI increased 12.50 points or 0.45% to 2,793.36, Nikkei 225 surged 446.46 points or 1.11% to 40,521.15 and Taiwan Weighted added 250.88 points or 1.1% to 23,130.25.

On the flip side, Shanghai Composite weakened 12 points or 0.4% to 2,985.01.