Domestic indices magnify gains in late morning deals

Domestic equity indices magnified their gains and were trading higher by over half a percent in late morning deals as market participants enlarged their positions. Hectic buying in IT industry related stocks namely TCS, Tech Mahindra, HCL and Infosys helped the markets to trade higher. Support came in as inflation in the United States cooled in June for a third straight month, a sign that the worst price spike in four decades is steadily fading and may soon usher in interest rate cuts by the Federal Reserve. Besides, traders took a note of reports that NITI Aayog member Arvind Virmani said the Indian economy will grow around 7 per cent in the current fiscal year and is on track to maintain a similar growth rate for several years. On the BSE sectoral front, traders were seen pilling up position in IT, TECK, Bankex, Energy and Oil & Gas, while selling was witnessed in Realty, Power, Capital Goods, Auto and Consumer Durables. 

On the global front, Asian market were trading mixed after inflation readings for June in the U.S. came in at the lowest level in about three years, giving the Federal Reserve room to lower rates. Back home, in the stock specific development, Oriental Rail Infrastructure surged after the company announced that it has bagged an order worth Rs 4,32,15,97,524 crore from Railway Board, Indian Railways. 

The BSE Sensex is currently trading at 80420.64, up by 523.30 points or 0.65% after trading in a range of 79843.39 and 80893.51. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.06%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were IT up by 3.06%, TECK up by 2.39%, Bankex up by 0.66%, Energy up by 0.34% and Oil & Gas up by 0.27%, while Realty down by 0.75%, Power down by 0.37%, Capital Goods down by 0.29%, Auto down by 0.27% and Consumer Durables down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 4.09%, Tech Mahindra up by 3.11%, HCL up by 2.72%, Axis Bank up by 2.62% and Infosys up by 2.60%. On the flip side, Maruti Suzuki down by 0.97%, Asian Paints down by 0.87%, Kotak Mahindra Bank down by 0.52%, Sun Pharma down by 0.29% and Bharti Airtel down by 0.15% were the top losers.

Meanwhile, underscoring the importance of the exploration and production (E&P) sector in achieving energy self-sufficiency and sustaining economic growth, Minister of Petroleum & Natural Gas Hardeep Singh Puri has said that the E&P sector offers investment opportunities worth $100 billion by 2030.

Minister also highlighted the vast potential of India’s 26 sedimentary basins, containing substantial reserves of crude oil and natural gas yet to be fully tapped. Further, highlighting the need to streamlining operational and regulatory processes, Puri stressed that the government is doing its part to catalyse investments in E&P. Puri also added that the Ministry of Petroleum and Natural Gas (MoPNG) has instituted sweeping reforms, empowering stakeholders to contribute to the nation's progress.

Besides, the Minister announced the formation of a Joint Working Group (JWG) comprising representatives from private E&P operators, the National Oil Companies, MoPNG, and the Directorate General of Hydrocarbons (DGH) to address industry concerns and improve the ease of doing business in the sector. Further, he directed the DGH to complete the process of integration of its various online portals by the end of the year.

The CNX Nifty is currently trading at 24484.55, up by 168.60 points or 0.69% after trading in a range of 24331.15 and 24592.20. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were TCS up by 4.04%, LTIMindtree up by 3.96%, Wipro up by 3.61%, Tech Mahindra up by 2.89% and Infosys up by 2.78%. On the flip side, Divi's Lab down by 1.65%, Maruti Suzuki down by 1.00%, Asian Paints down by 0.82%, Apollo Hospital down by 0.69% and Hindalco down by 0.64% were the top losers.

Asian markets were trading mixed; Shanghai Composite weakened 3.11 points or 0.1% to 2,967.28, KOSPI dropped 44.20 points or 1.53% to 2,847.15, Nikkei 225 slipped 966.08 points or 2.29% to 41,257.94 and Taiwan Weighted lost 565.19 points or 2.37% to 23,824.84. However, Hang Seng advanced 389.17 points or 2.18% to 18,221.50, Jakarta Composite gained 34.94 points or 0.48% to 7,335.35 and Straits Times rose 21.92 points or 0.63% to 3,496.98.