Domestic indices maintain gains in late morning deals

Domestic equity indices maintained their gains and were trading higher by over half percent in late morning deals as market participants indulged in enlarging their positions. Hectic buying in HDFC Bank, Axis Bank, Kotak Mahindra and ICICI Bank helped the markets to maintain their gains. Positive cues from the global markets supported domestic sentiments. Sentiments got boost as the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 60.5 in June from 60.2 in May. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 60.9 in June as against 60.5 in May. On the BSE sectoral front, traders were seen pilling up positions in Bankex, PSU, Telecom, Healthcare and Consumer Durables, while selling was witnessed in Energy, Oil & Gas, TECK and IT. 

On the global front, Asian markets were trading mostly in green, following positive cues from the US markets overnight, after U.S. Federal Reserve Chair Jerome Powell noted there was progress on reining in inflation. Back home, in the stock specific development, HDFC Bank surged after foreign portfolio investor (FPI) holdings in the private sector lender dropped below 55 per cent at the end of the June 2024 quarter. This drop in foreign ownership has helped the bank meet the criteria for increase in weight in the MSCI index.   

The BSE Sensex is currently trading at 79906.89, up by 465.44 points or 0.59% after trading in a range of 79754.95 and 80074.30. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50%, while Small cap index up by 0.87%.

The top gaining sectoral indices on the BSE were Bankex up by 1.64%, PSU up by 0.87%, Telecom up by 0.71%, Healthcare up by 0.69% and Consumer Durables up by 0.61%, while Energy down by 0.18%, Oil & Gas down by 0.17%, TECK down by 0.10% and IT down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 3.21%, Axis Bank up by 1.97%, Kotak Mahindra Bank up by 1.25%, ICICI Bank up by 1.18% and Bajaj Finance up by 0.73%. On the flip side, TCS down by 1.34%, Reliance Industries down by 1.18%, Tata Motors down by 0.54%, Larsen & Toubro down by 0.33% and HCL down by 0.28% were the top losers.

Meanwhile, India’s services sector activity improved during the month of June amid a stronger rise in new orders and an unprecedented expansion in international sales. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 60.5 in June from 60.2 in May. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 60.9 in June as against 60.5 in May.

The survey report noted that new orders received by Indian service providers continued to increase in June, extending the current sequence of expansion to nearly three years. The pace of growth was sharp, faster than in May and well above its long-run average. Besides, positive client appetite encouraged service providers in India to recruit additional staff at the end of the first fiscal quarter. The pace of job creation was marked and the strongest in 22 months. 

On the inflation front, average input prices rose at a below-trend rate, however, and one that was the softest in four months. Fewer than 5% of services companies opted to share additional cost burdens with their clients by lifting selling prices in June, resulting in only a moderate rate of charge inflation. The uptick was the slowest since February. Further, service providers remained confident of a rise in business activity over the course of the coming 12 months, with nearly 23% of panellists expressing optimism.

The CNX Nifty is currently trading at 24265.45, up by 141.60 points or 0.59% after trading in a range of 24207.10 and 24307.25. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 3.19%, Tata Consumer up by 2.69%, Axis Bank up by 1.89%, Dr. Reddy's Lab up by 1.79% and Shriram Finance up by 1.54%. On the flip side, TCS down by 1.34%, Reliance Industries down by 1.11%, Hindalco down by 1.04%, Cipla down by 0.74% and Tata Motors down by 0.54% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 156.93 points or 0.88% to 17,926.07, Jakarta Composite gained 19.14 points or 0.27% to 7,144.28, Straits Times rose 37.16 points or 1.1% to 3,405.06, KOSPI increased 12.18 points or 0.44% to 2,793.04, Nikkei 225 surged 544.03 points or 1.36% to 40,618.72 and Taiwan Weighted added 258.11 points or 1.13% to 23,137.48. However, Shanghai Composite weakened 14.71 points or 0.49% to 2,982.30.