Benchmarks remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, led by gains in Consumer Durables, Auto and Utilities stocks. Traders took support with rating agency Crisil’s report stating that securitisation volume rose to Rs 45,000 crore in the first quarter of the current fiscal (Q1FY25), marking a around 17% on-year, like-to-like growth (adjusted for the exit of a large HFC and regulatory measures on gold loan securitisation). Over 95 originators, including NBFCs and banks, tapped the market to diversify funding sources, compared with around 80 in previous fiscal. Meanwhile, the Indian government will reopen application window for the product-linked incentive (PLI) scheme for white goods (ACs and LED Lights) for 90 days starting July 15, 2024 to October 12, 2024. Under the scheme, the government provides fiscal incentives on incremental sales of goods manufactured in India. On the global front, Asian markets are trading mostly in green as markets hoped the US Federal Reserve Chair Jerome Powell would sound dovish about easing prospects later in the day, while the dollar steadied near four-week lows.  

The BSE Sensex is currently trading at 80125.79, up by 165.41 points or 0.21% after trading in a range of 79998.56 and 80213.38. 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 0.16%, while Small cap index was up by 0.09%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.26%, Auto up by 1.10%, Utilities up by 0.75%, Consumer Discretionary up by 0.63% and FMCG up by 0.58%, while Telecom down by 0.46%, Oil & Gas down by 0.33%, Energy down by 0.26%, Capital Goods down by 0.25% and PSU down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.64%, Titan Company up by 1.27%, ITC up by 1.21%, Mahindra & Mahindra up by 0.99% and Larsen & Toubro up by 0.92%. On the flip side, Reliance Industries down by 0.64%, Tech Mahindra down by 0.63%, Ultratech Cement down by 0.60%, NTPC down by 0.50% and Indusind Bank down by 0.47% were the top losers.

Meanwhile, CareEdge Ratings in its latest report has said that the two-wheeler industry is expected to sustain a steady volume growth this fiscal driven by improved domestic sales and good traction in executive and premium segment motorcycles. According to report, post-Covid, sales volume of two-wheelers had consistently declined during FY20, FY21 and FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well.

In FY23, the Indian two-wheeler industry recorded sales of 19.51 million units, an 8 per cent growth compared to the previous fiscal year's 18.01 million units. It stated in FY24, the industry continued its upward trajectory, achieving 9.8 per cent growth with a total sales volume of 21.43 million units. However, this was still short of the peak sales volume recorded in FY19, when annual sales volume had reached 24.46 million units.

Further, it said there are signs of revival, as in each of the last five months (January to May, 2024) two-wheeler exports reported robust double-digit volume growth, with two-wheeler exports in February reaching a 19-month high at 0.33 million units. Hardik Shah, Director at CareEdge Ratings, said ‘CareEdge Ratings anticipates two-wheeler sales volume growth to continue in FY25 and it would be more driven by improved domestic sales, higher EV sales, launch of CNG powered two-wheelers and good traction in executive and premium segment motorcycles.’

The CNX Nifty is currently trading at 24350.85, up by 30.30 points or 0.12% after trading in a range of 24331.90 and 24385.55. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 4.68%, Cipla up by 1.48%, Hero MotoCorp up by 1.41%, Titan Company up by 1.14% and ITC up by 1.03%. On the flip side, ONGC down by 1.39%, Dr. Reddy's Lab down by 1.18%, Reliance Industries down by 0.76%, Ultratech Cement down by 0.70% and Apollo Hospital down by 0.66% were the top losers.

Asian markets are trading mostly in green; Jakarta Composite gained 42.88 points or 0.59% to 7,293.86, Straits Times rose 15.11 points or 0.44% to 3,419.58, KOSPI increased 5.14 points or 0.18% to 2,862.90 and Nikkei 225 surged 964.85 points or 2.37% to 41,745.55.

On the flip side, Taiwan Weighted lost 29.22 points or 0.12% to 23,848.93, Hang Seng declined 80.91 points or 0.46% to 17,443.15 and Shanghai Composite weakened 0.18 points or 0.01% to 2,922.27.