Benchmarks remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, led by gains in Capital Goods, Industrials and Realty stocks amid positive global cues. The quarterly results of a couple of banks including ICICI Bank, Punjab National Bank and Bandhan Bank came in better-than-expected, lifting the banking pack. Traders took support with Commerce and Industry Minister Piyush Goyal’s statement that removal of angel tax, which was introduced in 2012 by the UPA government, for all classes of investors will help startups attract investments. Some support also came as S&P Global Ratings stated that it does not expect recent general election results to cast a shadow on the prospects for fiscal improvements in India, even as the US credit rating agency suggested that it may further raise the country’s ratings if fiscal deficits narrow meaningfully. S&P had raised India’s sovereign rating outlook to positive from stable in May this year. Besides, latest data by the Reserve Bank of India (RBI) showed that India’s foreign exchange reserves rose by $4 billion to hit a new all-time high of $670.86 billion in the week ended July 19. 

On the global front, Asian markets are trading higher on the back of the June US PCE inflation data that could turn the US Federal Reserve dovish in its July 30-31 policy meet, with markets globally now factoring in the first interest rate cut as soon as September. Back home, on the sectoral front, steel sector stocks remained in limelight with Steel Secretary Nagaendra Nath Sinha expressed optimism in steel demand amid headwinds and said that the domestic production is likely to cross 300 mn tonnes by 2030. 

The BSE Sensex is currently trading at 81588.50, up by 255.78 points or 0.31% after trading in a range of 81493.03 and 81749.34. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.73%, while Small cap index was up by 1.23%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.14%, Industrials up by 1.89%, Realty up by 1.73%, PSU up by 1.54% and Oil & Gas up by 1.18%, while Telecom down by 0.37%, Consumer Durables down by 0.31%, TECK down by 0.29%, FMCG down by 0.24% and IT down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.93%, SBI up by 2.47%, ICICI Bank up by 1.85%, Indusind Bank up by 1.54% and Tata Motors up by 0.75%. On the flip side, Titan Company down by 1.64%, Bharti Airtel down by 1.52%, Tech Mahindra down by 1.33%, Power Grid Corporation down by 1.00% and Sun Pharma down by 0.74% were the top losers.

Meanwhile, Fitch Ratings has said India's post-election budget confirms that the new administration remains committed to reducing the fiscal deficit for FY25 and FY26, despite demands of the coalition government. In the FY25 budget, the government has lowered the Centre's fiscal deficit target for the year ending March 2025 to 4.9 per cent of GDP, from 5.1 per cent in February's interim budget.

The government's fiscal deficit target for FY25 is significantly below the 5.4 per cent that the ratings agency anticipated when it affirmed India's 'BBB-' rating, with a stable outlook, in January 2024. It said the sustained focus on supporting economic growth through high public capex also points to continuity in key areas.

It stated ‘We believe that it should be achievable as the government's assumption of 10.5 per cent nominal GDP growth in FY25 is modestly below our current forecast. We think the government should also be able to achieve its goal of reducing the deficit below 4.5 per cent of GDP in FY26.’  Moreover, it said the government's record in recent years of achieving or outperforming its budget deficit targets has improved its fiscal credibility - the deficit in FY24, at 5.6 per cent of GDP, was well below the original target of 5.9 per cent.

The CNX Nifty is currently trading at 24902.90, up by 68.05 points or 0.27% after trading in a range of 24869.80 and 24980.45. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 2.74%, SBI up by 2.56%, ICICI Bank up by 1.84%, BPCL up by 1.67% and Indusind Bank up by 1.57%. On the flip side, Cipla down by 1.90%, Tata Consumer Product down by 1.77%, Bharti Airtel down by 1.58%, Titan Company down by 1.49% and Eicher Motors down by 1.31% were the top losers.

All Asian markets are trading higher; Hang Seng advanced 309.93 points or 1.79% to 17,331.24, Jakarta Composite gained 12.33 points or 0.17% to 7,300.50, Shanghai Composite strengthened 1.2 points or 0.04% to 2,892.10, Straits Times rose 25.13 points or 0.73% to 3,451.60, KOSPI increased 33.63 points or 1.23% to 2,765.53, Nikkei 225 surged 931.66 points or 2.47% to 38,599.07 and Taiwan Weighted added 90.27 points or 0.41% to 22,209.48.