Benchmarks remain in green in morning deals

Indian equity benchmarks trimmed some of their initial gains but continued to trade in green in morning deals, led by gains in IT, TECK and Auto stocks amid supportive global cues. Traders took some support with a research paper by the economic think tank NCAER stating that poverty in India is estimated to have declined to 8.5 per cent in 2022-24 from 21.2 per cent in 2011-12, despite the challenges posed by the pandemic. Some support also came as a CRISIL Ratings report said that revenues of top 18 states, which account for 90 per cent of India's gross state domestic product, are likely to grow at a pace of eight to 10 per cent during the current financial year at Rs 38 lakh crore with robust GST collections and devolution of finances from the Centre, which comprise around 50 per cent of the aggregate state revenues. Sectorally, tyre industry stocks remained in watch as Automotive Tyre Manufacturers' Association stated that its members are witnessing a severe crunch in the availability of domestic natural rubber and it may disrupt production unless supply issues of the raw material are addressed. On the global front, Asian markets are trading mostly in green on renewed bets that the Federal Reserve may start cutting rates in September following soft labour data in the world’s largest economy.  

The BSE Sensex is currently trading at 80181.16, up by 194.36 points or 0.24% after trading in a range of 80113.81 and 80392.64. 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 0.21%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were IT up by 1.51%, TECK up by 1.19%, Auto up by 0.44%, Utilities up by 0.43% and Power up by 0.36%, while Oil & Gas down by 0.12%, Basic Materials down by 0.11% and Consumer Durables down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 2.46%, Infosys up by 1.90%, ICICI Bank up by 1.88%, TCS up by 1.53% and Tata Motors up by 1.20%. On the flip side, HDFC Bank down by 1.77%, Indusind Bank down by 1.30%, Bajaj Finance down by 0.85%, Titan Company down by 0.68% and Adani Ports &SEZ down by 0.62% were the top losers.

Meanwhile, CRISIL Ratings in its latest report has said that revenues of top 18 states, which account for 90 per cent of India's gross state domestic product, are likely to grow at a pace of 8 to 10 per cent during the current financial year (FY25) at Rs 38 lakh crore. Last fiscal, the revenues of the 18 states grew by seven per cent. 

It stated the growth will be primarily driven by robust GST collections and devolution of finances from the Centre, which comprise around 50 per cent of the aggregate state revenues. Moreover, it said that while revenue on liquor sales, which is ten per cent of the states' revenues, is expected to remain stable, collections of sales tax imposed on petroleum products and grants recommended by the 15th Finance Commission will be modest.

Senior director of CRISIL Ratings Anuj Sethi said that the biggest impetus to revenue growth will continue to come from aggregate state GST collections and also from improved tax compliance and greater formalisation of the economy. Central tax devolutions are expected to grow by 12 to 13 per cent in the current financial year which will be an important driver. Grants from the Centre will grow by four to five per cent, which is in line with the Budget outlay.

The CNX Nifty is currently trading at 24344.85, up by 58.35 points or 0.24% after trading in a range of 24319.15 and 24401.00. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were HCL Technologies up by 2.50%, ICICI Bank up by 2.07%, Infosys up by 1.77%, TCS up by 1.57% and Tata Motors up by 1.24%. On the flip side, HDFC Bank down by 1.75%, Indusind Bank down by 1.16%, Ultratech Cement down by 1.14%, Adani Enterprises down by 1.08% and Bajaj Finance down by 0.90% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 9.68 points or 0.05% to 17,988.25, Jakarta Composite gained 50.13 points or 0.7% to 7,246.89, Straits Times rose 19.72 points or 0.58% to 3,435.23, KOSPI increased 21.77 points or 0.78% to 2,815.78, Nikkei 225 surged 351.28 points or 0.87% to 40,932.04 and Taiwan Weighted added 359.04 points or 1.55% to 23,531.47.

On the flip side, Shanghai Composite weakened 12.93 points or 0.43% to 2,969.45.