Markets trade at new high levels in late afternoon session

Indian equity markets traded at new high levels in late afternoon session. The majority of the gains were driven by IT stocks. Investors awaited IT major – Infosys’ financial results for the April-June period due later in the day. Traders took note of private report that India is aiming to boost annual foreign direct investment by more than 50% to help lift economic growth. On the global front, Asian markets were trading mixed as tech shares came under heavy selling pressure on signs of worsening trade tensions between the China and the United States. European markets were trading higher as data showed U.K. wage growth softened in the three months to May period, raising hopes of interest rate cuts ahead of the Bank of England's rate decision next month.

The BSE Sensex is currently trading at 81409.29, up by 692.74 points or 0.86% after trading in a range of 80390.37 and 81485.90. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.04%, while Small cap index was down by 0.93%.

The top gaining sectoral indices on the BSE were TECK up by 1.63%, IT up by 1.60%, FMCG up by 0.79%, Bankex up by 0.71% and Telecom was up by 0.61%, while Power down by 1.76%, Capital Goods down by 1.70%, Industrials down by 1.62%, Consumer Durables down by 1.08% and PSU was down by 1.05% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.81%, Bajaj Finserv up by 2.18%, Mahindra & Mahindra up by 2.02%, Hindustan Unilever up by 2.00% and Infosys up by 1.79%. On the flip side, Asian Paints down by 1.55%, NTPC down by 0.78%, Ultratech Cement down by 0.49%, Tata Steel down by 0.45% and Power Grid down by 0.34% were the top losers.

Meanwhile, the International Monetary Fund (IMF), in its latest ‘World Economic Outlook Update, July 2024’, has revised India’s growth projection upward to 7 per cent for 2024 from 6.8 per cent projected earlier, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas. The country maintaining the fastest-growing status in emerging markets and developing economies. 

The IMF had earlier projected growth rate of 6.5 per cent for 2024, revising it to 6.8 per cent and now 7 per cent. For the year 2025, the IMF has maintained its growth projection for the country at 6.5 per cent. It attributed robustness and strength in domestic demand and a rising working-age population behind its growth projections.

IMF said the forecast for growth in emerging market and developing economies has been revised upward and the projected increase is powered by stronger activity in Asia, particularly China and India. For China, the growth forecast has been revised upward to 5 percent in 2024, primarily on account of a rebound in private consumption and strong exports in the first quarter.

According to the Indian government data, India’s GDP grew at an impressive 8.2 per cent during the financial year 2023-24, and it continued to remain the fastest-growing major economy. India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22 respectively.

The CNX Nifty is currently trading at 24799.05, up by 186.05 points or 0.76% after trading in a range of 24504.45 and 24829.35. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were LTIMindtree up by 2.89%, TCS up by 2.65%, Hindustan Unilever up by 2.29%, Wipro up by 2.28% and Bajaj Finserv up by 2.20%. On the flip side, Coal India down by 1.75%, Asian Paints down by 1.60%, Bajaj Auto down by 1.40%, Hero MotoCorp down by 1.25% and Grasim Industries down by 0.76% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 971.34 points or 2.42% to 40,126.35, Taiwan Weighted lost 371.35 points or 1.59% to 23,398.47, Straits Times fell 21.85 points or 0.63% to 3,467.72 and KOSPI was down by 18.94 points or 0.67% to 2,824.35. On the flip side, Shanghai Composite strengthened 14.28 points or 0.48% to 2,977.13, Hang Seng advanced 39 points or 0.22% to 17,778.41 and Jakarta Composite was up by 103.78 points or 1.44% to 7,328.00.

European markets were trading higher; UK’s FTSE 100 increased 65.91 points or 0.81% to 8,253.37, France’s CAC rose 30.44 points or 0.4% to 7,601.25 and Germany’s DAX was up by 16.75 points or 0.09% to 18,454.05.