Benchmarks trade in green in morning deals

Indian equity benchmarks erased initial losses and were trading in green in morning deals, led by gains in Utilities, Power and PSU stocks. Traders took support with the latest monthly payroll data released by the Employees’ Provident Fund Organisation (EPFO) showing that the number of fresh formal jobs created in a month increased to a ten-month high in May, signalling a recovery in the formal labour market in the country. Some support also came as data shared by the Reserve Bank of India showed India’s forex reserves jumped by $9.69 billion to hit an all-time high of $666.85 billion as of July 12. However, gains remain capped as investors remained cautious ahead of the Union Budget 2024 presentation on July 23. On the global front, Asian markets are trading mostly in red ahead of a packed week of corporate earnings that should test the sky-high valuations of tech stocks, while investors hope a key reading in U.S. inflation will narrow the odds on a September rate cut.  Besides, the sudden and abrupt decision by the US President Joe Biden to drop out of the presidential elections weighed on sentiments.

The BSE Sensex is currently trading at 80737.09, up by 132.44 points or 0.16% after trading in a range of 80100.65 and 80770.37. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.06%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Utilities up by 1.73%, Power up by 1.70%, PSU up by 1.55%, Telecom up by 1.13% and Healthcare up by 1.02%, while Realty down by 0.18% and Energy down by 0.07% were the few losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.87%, HDFC Bank up by 2.67%, Power Grid Corporation up by 2.02%, Mahindra & Mahindra up by 2.01% and Ultratech Cement up by 1.34%. On the flip side, Reliance Industries down by 2.53%, Kotak Mahindra Bank down by 2.53%, ICICI Bank down by 0.99%, Indusind Bank down by 0.76% and Axis Bank down by 0.60% were the top losers.

Meanwhile, Union Minister for Chemicals and Fertilizers JP Nadda has reiterated the crucial role of the petrochemicals and the chemical sector in achieving the vision of Prime Minister Narendra Modi of achieving a $5 trillion economy by 2025. He announced that the government is prepared to make significant policy and programme interventions to overcome challenges faced by chemicals and petrochemicals industry and stimulate the sector’s growth.

He stated ‘As Prime Minister Modi desires that we have to become a $ 5 trillion economy, we have to align our programs and policies accordingly to see to it that the petrochemical industry, chemical industry also go in the same way and align itself so that we all together contribute to achieving that five trillion economy goal.’

The Government is committed to the growth of the industry and has initiated numerous structural reforms to support industrial development in general, and to strengthen the chemical sector in particular, Nadda said adding that that this sector is a top priority for the Government. He added ‘As a minister, I can assure you that whatever interventions are needed in policies, in programs, whatever changes in the strategies are needed, the government is committed to it, and we will go forward.’

The CNX Nifty is currently trading at 24568.05, up by 37.15 points or 0.15% after trading in a range of 24362.30 and 24579.40. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.03%, NTPC up by 2.80%, HDFC Bank up by 2.65%, Mahindra & Mahindra up by 2.08% and Power Grid Corporation up by 2.02%. On the flip side, Wipro down by 8.25%, Reliance Industries down by 2.58%, Kotak Mahindra Bank down by 2.50%, ICICI Bank down by 1.05% and Indusind Bank down by 0.76% were the top losers.