Benchmarks continue to trade marginally in green

Indian equity benchmarks continued to trade marginally in green in morning deals, led by gains in IT, TECK and Basic Materials stocks. Some support came as Minister of Petroleum and Natural Gas of India Hardeep Singh Puri hopes that global oil prices will come down despite geopolitical tensions as more supplies are coming into the market. Traders took note of S&P Global Market Intelligence’s statement that India's growth, although moderating, remains strong with a forecasted average of 6.8 per cent for the fiscal year 2024-25 and 6.6 per cent for 2025-26. It also said despite a slowdown in economic momentum due to weaker public-sector investment, the outlook for India's economy is buoyed by several positive factors. However, gains remain capped as some concern came with a labour ministry statement stating that retail inflation for farm workers and rural labourers increased to 6.36 per cent and 6.39 per cent, respectively, in September from 5.96 per cent and 6.08 per cent in August this year. On the global front, Asian markets are trading mostly in green as traders react to the Biden administration's renewed efforts to secure a cease-fire in the Middle East.

The BSE Sensex is currently trading at 80333.97, up by 113.25 points or 0.14% after trading in a range of 79891.68 and 80481.63. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.59%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were IT up by 1.98%, TECK up by 1.32%, Basic Materials up by 0.47%, Metal up by 0.44% and Telecom up by 0.40%, while Utilities down by 1.02%, Power down by 0.99%, Oil & Gas down by 0.75%, PSU down by 0.60% and Energy down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 4.99%, Tech Mahindra up by 1.79%, Bajaj Finserv up by 1.67%, HDFC Bank up by 1.47% and TCS up by 1.39%. On the flip side, NTPC down by 2.60%, Mahindra & Mahindra down by 1.70%, Power Grid Corporation down by 1.55%, ICICI Bank down by 1.38% and Ultratech Cement down by 0.86% were the top losers.

Meanwhile, Reserve Bank of India deputy governor Michael Debabrata Patra has said that India’s GDP growth is projected at 7.2 per cent in 2024-25, around 7 per cent in the next fiscal, and after that, there is a strong likelihood that the growth will revert to the 8 per cent trend. He said ‘I do believe with all the strength of my conviction that India’s time has come’. 

He highlighted the country heads into its future with the youngest population in the world with a median age of 28 years. Unlike in many parts of the world, the working age population is growing - every sixth working age person is an Indian. He said that since independence in 1947, India’s growth path has undergone three structural shifts with trend growth, having risen to 7 per cent during 2002-2019. He stated after the severe contraction during the pandemic, a new growth trajectory averaging 8 per cent seems to be forming during 2021-24. India is now regarded as the fastest growing major economy in the world.

Already the fifth largest economy in terms of market exchange rates, it is poised to become the third largest economy by 2030, He said and added the country is already the third largest economy in terms of purchasing power parity. On inflation, he said it is projected to average 4.5 per cent in 2024-25 and 4.1 per cent in 2025-26. Consumer Price Index (CPI) based inflation fell below target during July-August but rose to 5.5 per cent in September on the back of a pickup in price momentum in some food items and adverse base effects inherent in year-on-year measurement.

The CNX Nifty is currently trading at 24512.30, up by 40.20 points or 0.16% after trading in a range of 24378.10 and 24556.55. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 5.52%, Bajaj Auto up by 2.24%, Bajaj Finserv up by 2.00%, Adani Enterprises up by 1.79% and Tech Mahindra up by 1.62%. On the flip side, NTPC down by 2.47%, Mahindra & Mahindra down by 1.58%, Power Grid Corporation down by 1.56%, ICICI Bank down by 1.37% and Eicher Motors down by 1.31% were the top losers.

Asian markets are trading mostly in green; Shanghai Composite strengthened 26 points or 0.79% to 3,311.87, Hang Seng advanced 342.78 points or 1.64% to 20,841.73, KOSPI increased 32.53 points or 1.27% to 2,603.23 and Straits Times rose 16.15 points or 0.45% to 3,603.56.

On the flip side, Nikkei 225 slipped 267.07 points or 0.7% to 38,144.89, Taiwan Weighted lost 194.12 points or 0.82% to 23,341.31 and Jakarta Composite plunged 9.65 points or 0.12% to 7,779.33.