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Domestic indices remain in green late afternoon session
Sep-11-2024

Domestic equity indices remained in green in afternoon session on account of buying in Asian Paints, Bajaj Finance, Hindustan Unilever and Sun Pharma companies’ stocks. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.15-0.25%. Falling crude oil prices and buying by FIIs supported domestic sentiments. Some support also came in as Fitch Ratings said India remains committed to reducing the budget deficit over the medium term, despite its focus on higher public capex and demands of the coalition government. However, gains remained capped on the back of weak cues from the other Asian markets. Meanwhile, investors assessed the U.S. presidential debate between Republican presidential nominee Donald Trump and Democratic Vice President Kamala Harris. The two presidential candidates have yet to agree on a second debate, meaning the event might have been their only face-off before Election Day 

On the global front, Asian markets were trading mostly in red amid Bank of Japan board member Junko Nakagawa said the central bank would continue to raise interest rates if the economy and inflation move in line with the bank’s forecasts. Back home, on the BSE sectoral front, traders were seen pilling up positions in FMCG, Healthcare, Power, Capital Goods, Consumer Durables, while selling was witnessed in Oil & Gas, Energy, Auto, Realty and PSU. In the stock specific development, Lemon Tree Hotels advanced after it announced a new license agreement for its upcoming Mira Road, Mumbai property.

The BSE Sensex is currently trading at 82021.06, up by 99.77 points or 0.12% after trading in a range of 81741.65 and 82083.39. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.23%.

The top gaining sectoral indices on the BSE were FMCG up by 0.77%, Healthcare up by 0.72%, Power up by 0.68%, Capital Goods up by 0.59% and Consumer Durables up by 0.52%, while Oil & Gas down by 1.54%, Energy down by 0.95%, Auto down by 0.70%, Realty down by 0.58% and PSU down by 0.56% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.33%, Bajaj Finance up by 1.90%, Hindustan Unilever up by 1.33%, Bajaj Finserv up by 1.03% and Sun Pharma up by 0.90%. On the flip side, Tata Motors down by 5.60%, NTPC down by 0.53%, ICICI Bank down by 0.45%, Mahindra & Mahindra down by 0.44% and HDFC Bank down by 0.17% were the top losers.

Meanwhile, Chief Economic Advisor (CEA) V Anantha Nageswaran has asked automobile manufacturers to invest in Research and development (R&D) in order to make a world-class industry. He also asked them to focus on improving the global NCAP (New Car Assessment Programme) ratings of their products so that exports get further push. 

CEA said the Indian private sector roughly contributes about one third of the overall R&D spending in the economy while the remaining two thirds comes from the government. He said ‘again, our studies show that it is not due to lack of government support for R&D spending in general, but it also depends on our ability to think over a much longer horizon...seeing the R&D expenditure as an investment, rather than as an expenditure against the profit and loss account’. So in that sense, he said enhancing the investment in R&D and becoming global leaders, it will be an important contributor to the 'aatmanirbharta' programme in terms of placing Indian manufacturing in the global roadmap. Besides, he said, auto manufacturers should not see public mobility as a form of competition but as a complement.

Talking about the Indian economy, Nageswaran said ‘it is doing quite well amidst the global uncertainty. Thanks to the strong corporate and financial sector balance sheets, and thanks to massive investments in supply side infrastructure in the last 8-10 years...our potential growth of the economy is somewhere between 6.5-7 per cent and if we sustain some more reforms, especially at the state and local government level, then it is possible for us to raise this number to somewhere between 7-7.5 per cent’. He added that sustainably, going towards 8 per cent would also require the global economy growing well. 

The CNX Nifty is currently trading at 25063.75, up by 22.65 points or 0.09% after trading in a range of 24981.30 and 25091.25. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 3.75%, Asian Paints up by 2.29%, Bajaj Finance up by 2.00%, Hindustan Unilever up by 1.19% and Britannia up by 1.06%. On the flip side, Tata Motors down by 5.56%, ONGC down by 3.23%, BPCL down by 1.71%, Hindalco down by 1.41% and ICICI Bank down by 0.56% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 223.3 points or 1.31% to 17,010.79, Jakarta Composite plunged 7.82 points or 0.1% to 7,753.57, Shanghai Composite weakened 28.92 points or 1.07% to 2,715.27, KOSPI dropped 19.34 points or 0.77% to 2,504.09, Nikkei 225 slipped 539.39 points or 1.51% to 35,619.77 and Taiwan Weighted lost 33.08 points or 0.16% to 21,031.00. However, Straits Times rose 15.44 points or 0.44% to 3,528.11. 
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