Domestic indices trade near natural lines with positive bias

Domestic equity indices traded near natural lines with positive bias in late morning deals on account of buying in Asian Paints, Bajaj Finserv, Titan, ITC and Adani Ports companies’ stocks. Meanwhile, the broader indices were trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.35-0.70%. Traders took note of report that Krishnamurthy V Subramanian, executive director, International Monetary Fund (IMF), said Indian economy is slated to grow to $55 trillion by 2047, if the country is able to register an average real growth rate of 8 per cent in the coming years with average inflation remaining around 5 per cent. On the BSE sectoral front, traders were seen pilling up positions in Healthcare, FMCG, Telecom, Consumer Durables and Energy, while selling was witnessed in Realty, Bankex and IT. 

On the global front, Asian markets were trading mostly in red following weak cues from the US markets overnight. Traders took note of report that Japan’s trade data for July showed exports rose 10.3% year on year and imports grew 16.6%. Street had forecast that exports would rise 11.4%, while imports growth was pegged at 14.9%. Back home, in the stock specific development, Dr Reddy’s Laboratories rose after the company announced its potential partnership with its subsidiary Aurigene Pharmaceutical and US based Kainomyx for developing an anti-malarial drug.

The BSE Sensex is currently trading at 80817.33, up by 14.47 points or 0.02% after trading in a range of 80626.38 and 80897.09. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36%, while Small cap index up by 0.70%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.74%, FMCG up by 0.73%, Telecom up by 0.67%, Consumer Durables up by 0.55% and Energy up by 0.54%, while Realty down by 1.46%, Bankex down by 0.28% and IT down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.26%, Bajaj Finserv up by 1.01%, Titan up by 0.99%, Adani Ports up by 0.98% and ITC up by 0.93%. On the flip side, Ultratech Cement down by 1.39%, Tata Steel down by 0.97%, Tech Mahindra down by 0.72%, HDFC Bank down by 0.64% and ICICI Bank down by 0.60% were the top losers.

Meanwhile, the Labour Ministry has said that Employees’ Provident Fund Organisation (EPFO) has registered a net addition of 19.29 lakh members in June 2024. It stated that a year-over-year analysis showed a 7.86 per cent growth in net member additions compared to June 2023. This surge in membership can be attributed to numerous factors, including increased employment opportunities, a growing awareness of employee benefits, and the effectiveness of EPFO’s outreach programmes. 

The payroll data indicates that around 10.25 lakh new members have been enrolled during June 2024. There is an increase of 4.08 per cent in the new members from May 2024 and a 1.05 per cent rise against June 2023. A noticeable aspect of the data is the dominance of the 18-25 age group, constituting a significant 59.14 per cent of the total new members added in June 2024. This aligns with the earlier trend, which indicates that most individuals joining the organised workforce are youth, primarily first-time job seekers. It also highlights that approximately 14.15 lakh members exited and subsequently rejoined EPFO. This figure depicts year-on-year growth of 11.79 per cent compared to June 2023. These members switched their jobs and re-joined the establishments covered under the ambit of EPFO and opted to transfer their accumulations instead of applying for final settlement thus, safeguarding long-term financial well-being and extending their social security protection.

Gender-wise analysis of payroll data unveils that out of new members added during the month, around 2.98 lakh are new female members. This figure exhibits year-on-year growth of 5.88 per cent compared to June 2023. Also, the net female member addition during the month stood at around 4.28 lakh, reflecting an annual growth of 8.91 per cent compared to June 2023. The surge in female member additions is indicative of a broader shift towards a more inclusive and diverse workforce. State-wise analysis of payroll data denotes that net member addition is highest in the five states/ UTs of Maharashtra, Karnataka, Tamil Nadu, Gujarat, and Haryana. These states constitute around 61.16 per cent of net member addition, adding a total of 11.8 lakh net members during the month. Of all the states, Maharashtra is leading by adding 21.09 per cent of net members during the month.

The CNX Nifty is currently trading at 24738.00, up by 39.15 points or 0.16% after trading in a range of 24654.50 and 24753.95. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 3.85%, Adani Enterprises up by 1.65%, Hindalco up by 1.54%, Cipla up by 1.27% and SBI Life up by 1.27%. On the flip side, Ultratech Cement down by 1.08%, Tata Steel down by 0.99%, Tech Mahindra down by 0.70%, HDFC Bank down by 0.66% and ICICI Bank down by 0.55% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 162.06 points or 0.93% to 17,349.02, Shanghai Composite weakened 12.16 points or 0.42% to 2,854.50, Straits Times fell 4.05 points or 0.12% to 3,366.26 Nikkei 225 slipped 136.44 points or 0.36% to 37,926.48 and Taiwan Weighted lost 213.59 points or 0.95% to 22,215.51. However, Jakarta Composite gained 26.43 points or 0.35% to 7,560.42 and KOSPI increased 5.58 points or 0.21% to 2,702.21.