Markets trade slightly higher in early deals

Indian equity benchmarks made flat-to-positive start on Friday following overnight gains on Wall Street. Markets are trading slightly higher in early deals amid foreign fund inflows. As per NSE data, Foreign Institutional Investors (FII) were net buyers of Indian equities worth Rs 629.96 crore. Sentiments got boost as a finance ministry report said India is set to achieve 6.5-7 per cent GDP growth in the current financial year as indicated by the movements in high-frequency indicators till August. Some support came as expecting less worries for countrymen, the Finance Ministry said the outlook for inflation trajectory remained positive on the backs of good monsoon and healthy sowing progress of Kharif crops. 

On the global front, Asian markets are trading mixed, as traders continue to bet on further reductions in interest rates by the US Fed, and on hopes about more stimulus measures from the Chinese government to spur growth in the world's second largest economy. Some cautiousness came as the Ministry of Internal Affairs and Communications said overall consumer prices in the Tokyo region of Japan were up 2.2 percent on year in September. 

Back home, sugar stocks are buzzing as Food Minister Pralhad Joshi said the government is considering increasing the ethanol price for 2024-25 season as well as minimum selling price of sugar. Joshi said the proposal on hiking the ethanol price is under consideration of the government. In stock specific development, Hindustan Copper climbed as the company is working on expansion projects to increase its mine production capacity to 12.2 million tonnes per annum (MTPA).

The BSE Sensex is currently trading at 85855.62, up by 19.50 points or 0.02% after trading in a range of 85787.61 and 85955.50. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.19%, while Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were IT up by 2.12%, Metal up by 1.33%, TECK up by 1.24%, Basic Materials up by 0.87% and Consumer Durables up by 0.43%, while Realty down by 1.37%, Capital Goods down by 0.69%, Telecom down by 0.67%, Industrials down by 0.41% and Bankex down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.65%, Tech Mahindra up by 2.02%, HCL Technologies up by 1.98%, Sun Pharma up by 1.89% and TCS up by 1.67%. On the flip side, Power Grid down by 2.57%, Larsen & Toubro down by 2.48%, Bharti Airtel down by 1.97%, Mahindra & Mahindra down by 0.69% and ICICI Bank down by 0.64% were the top losers.

Meanwhile, Finance Ministry in its latest the Monthly Economic Review for August has said that India is set to achieve 6.5-7 per cent Gross Domestic Product (GDP) growth in the current financial year (FY25) as indicated by the movements in high-frequency indicators till August. The recent developments analysed indicate strong foundations of macroeconomic stability in India with steady growth, investment, employment and inflation trends, a strong and stable financial sector and a resilient external account, including a comfortable foreign exchange reserve position.

It said ‘A challenge on the macroeconomic front is of navigating the continuing uncertainty in global economic prospects. We will likely encounter a cycle of policy rate cuts globally amid fears of a recession in advanced economies and continuing geopolitical conflicts’. The report said, the GDP growth of 6.7 per cent in Q1 FY25 and the movements in high-frequency indicators till August fit well with the real GDP growth projection of 6.5-7 per cent for FY25, provided by the Economic Survey 2023-24. It said for the remaining part of the financial year, a reasonable expectation is that public expenditure will pick up, providing added growth and investment impetus.

It further said in the farm sector, higher kharif acreage is already visible. Adequately replenished reservoir levels will potentially give a fillip to the upcoming Rabi crops as well. It added the skewed spatial distribution of rain may have an impact on farm output in a few regions. However, in the absence of any serious adverse climate shocks, rural incomes and demand should get stronger, and food inflation will be milder. There are also incipient signs of strains in certain sectors. 

The CNX Nifty is currently trading at 26240.85, up by 24.80 points or 0.09% after trading in a range of 26208.90 and 26250.55. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.57%, Hindalco up by 2.52%, Infosys up by 2.51%, HCL Technologies up by 2.22% and LTIMindtree up by 2.17%. On the flip side, Larsen & Toubro down by 2.55%, Power Grid down by 2.48%, Bharti Airtel down by 1.97%, ONGC down by 1.07% and Mahindra & Mahindra down by 0.74% were the top losers.

Asian markets are trading mixed; Hang Seng jumped 678.47 points or 3.29% to 20,603.05, Nikkei 225 surged 301.2 points or 0.77% to 39,226.83, Shanghai Composite strengthened 64.34 points or 2.1% to 3,065.29 and Taiwan Weighted added 45.79 points or 0.2% to 22,904.60. On the other hand, Jakarta Composite fell 53.02 points or 0.69% to 7,691.50, Straits Times fell 15.75 points or 0.44% to 3,566.48 and KOSPI was down by 4.13 points or 0.15% to 2,667.44.