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Bulls roar on Dalal Street
Jul-26-2024

Bulls held a tight grip over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading near their intraday high points, aided by positive cues from other Asian markets along with heavy buying at Telecom and Metal stocks. Sentiments remained upbeat, as the government eased certain norms for licence holders of the Export Promotion Capital Goods scheme as part of its ease of doing business efforts. The EPCG scheme facilitates import of capital goods for producing quality goods and services and enhances India's manufacturing competitiveness. It allows import of capital goods for pre-production, production and post-production at zero customs duty.

On the global front, Asian markets were trading mostly in green, even as Singapore's industrial production decreased unexpectedly in June after recovering in the previous month. The preliminary data from the Economic Development Board revealed that industrial production dropped 3.9 percent year-on-year in June, reversing a 2.3 percent rise in May. Meanwhile, output was expected to remain flat. Excluding bio-medical manufacturing, industrial production dropped 1.6 percent annually in June versus a 9.5 percent surge in the prior month.

The BSE Sensex is currently trading at 80977.21, up by 937.41 points or 1.17% after trading in a range of 80013.60 and 80978.09. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.83%, while Small cap index was up by 1.17%.

The top gaining sectoral indices on the BSE were Telecom up by 3.07%, Metal up by 2.90%, TECK up by 2.46%, Utilities up by 2.21% and Basic Materials up by 2.19%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bharti Airtel up by 3.25%, Adani Ports & SEZ up by 3.24%, Tata Steel up by 3.21%, JSW Steel up by 3.18% and Infosys up by 2.63%. On the flip side, Nestle down by 0.82%, Axis Bank down by 0.55% and HDFC Bank down by 0.39% were the top losers.

Meanwhile, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey has said that the focus of the government will be to improve the performance of Central Public Sector Enterprises (CPSEs) with a view to not to push disinvestment just to meet targets maximise wealth creation and. He said the market capitalisation of 77 listed public sector entities, which include banks, insurance companies and CPSEs, has jumped 4 times in the last three years to about Rs 73 lakh crore.

Pandey said there has been an improvement in the performance of public sector entities and markets have started valuing these entities in a much better manner. Also, LIC has contributed significantly to the total market capitalisation of CPSEs. According to the latest BSE data, LIC's market capitalisation stands at Rs 7.2 lakh crore.  There is a marked performance improvement, capex improvement, management incentives are getting aligned with the performance of CPSEs and markets are noticing it and therefore, there is a change in perception about CPSEs.

DIPAM Secretary said ‘disinvestment strategy is only supportive. It is subsumed into the asset management strategy, it is not a dominant strategy. If you have a dominant disinvestment strategy then it is a fiscal asset management strategy and not a public asset management strategy. We are seeing a shift towards value creation strategy and focus on creating wealth’. The government has also stopped giving any clear target for disinvestment receipts in the Budget document. It now provides the budget for capital receipts, which includes receipts from disinvestment and asset monetisation. In the current fiscal (FY25), the government has budgeted Rs 50,000 crore from capital receipts, up from Rs 30,000 crore in the last fiscal. 

The CNX Nifty is currently trading at 24718.65, up by 312.55 points or 1.28% after trading in a range of 24410.90 and 24721.50. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 4.89%, Apollo Hospital up by 4.53%, SBI Life Insurance up by 3.89%, Adani Enterprises up by 3.51% and Adani Ports & SEZ up by 3.35%. On the flip side, ONGC down by 1.44%, Nestle down by 0.87%, Axis Bank down by 0.63%, HDFC Bank down by 0.45% and BPCL down by 0.20% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 29.69 points or 0.17% to 17,034.66, Jakarta Composite gained 36.78 points or 0.51% to 7,277.06, Shanghai Composite strengthened 5.46 points or 0.19% to 2,892.20, Straits Times rose 1.97 points or 0.06% to 3,432.42 and KOSPI increased 21.25 points or 0.78% to 2,731.90, while Nikkei 225 slipped 202.1 points or 0.54% to 37,667.41 and Taiwan Weighted lost 752.63 points or 3.4% to 22,119.21.
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