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Gaining rally takes markets to fresh peaks
Sep-18-2024

A gaining rally took Indian equity benchmarks to fresh peaks in early afternoon deals, with both Sensex and Nifty holding notable gains, on the back of heavy buying at Banking and Auto counters, despite negative cues from other Asian markets. Sentiments were positive, amid reports that the commerce ministry has taken a host of steps during the 100 days of the Modi 3.0 government for MSME exporters who are facing global challenges due to geo-political tensions. The commerce ministry said the measures included launching of 'Trade Connect e-Platform' to empower SMEs by giving them access to information and guidance on trade. Besides, farmers' body Federation of All India Farmer Associations (FAIFA) has said that the government's initiatives for digital revolution in agriculture will go a long way in arresting the exodus of youth from agriculture. FAIFA said the recently announced seven schemes totaling Rs 14,000 crore will play a key role in stopping the movement of the youth from rural to urban and from farming to other professions.

On the global front, Asian markets are trading mostly in red, as Japan's core machinery orders declined unexpectedly in July. The data from Cabinet Office showed that core machinery orders that exclude volatile orders for ships and electric utilities, fell 0.1 percent on a monthly basis, confounding expectations for an increase of 0.4 percent. This followed June's 2.1 percent growth. On a yearly basis, core machinery orders surged 8.7 percent, in contrast to the 1.7 percent drop posted in June.

The BSE Sensex is currently trading at 83308.24, up by 228.58 points or 0.28% after trading in a range of 82949.42 and 83318.37. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.36%, while Small cap index was down by 0.14%.

The top gaining sectoral indices on the BSE were Bankex up by 1.38%, Auto up by 0.34%, Utilities up by 0.29%, PSU up by 0.24% and Power up by 0.12%, while IT down by 2.56%, TECK down by 2.01%, Healthcare down by 1.09%, Consumer Durables down by 0.58% and Oil & Gas down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.68%, Bajaj Finserv up by 2.30%, ICICI Bank up by 1.92%, HDFC Bank up by 1.69% and Mahindra & Mahindra up by 1.54%. On the flip side, TCS down by 3.16%, Tech Mahindra down by 2.89%, Infosys down by 2.54%, HCL Tech. down by 2.53% and Tata Steel down by 1.08% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India's exports to China dipped by 22.44 per cent to $1 billion, while imports rose by 15.55 per cent to $10.8 billion in August. Cumulatively, in the April-August period this fiscal, exports to the neighbouring country dipped by 8.3 per cent to $5.8 billion while imports grew 10.96 per cent to $46.65 billion, leaving a trade deficit of $35.85 billion. 

The country's exports to the US, the UAE, Singapore, Bangladesh, Australia, South Africa, France, Nepal, Belgium, and Turkey also declined during the month under review. Also, imports from the UAE, Switzerland, Korea, Japan, Thailand, Vietnam and Taiwan, recorded growth. According to the data, India's exports to the US declined 6.29 per cent to $6.55 billion while imports from that country dipped by 6.3 per cent to $3.82 billion in August. Cumulatively, during the April-August 2024-25, exports to the US increased 5.72 per cent to $34 billion, while imports grew 3.72 per cent to $19 billion, leaving a trade surplus of $15 billion.

Similarly, the country's imports from Russia dipped by about 40 per cent to $2.57 billion in August. During April-August 2024-25, imports grew by 6.39 per cent to $27.35 billion, due to crude oil imports. In 2023-24, the US was India's largest trading partner, followed by China. China was India's top trading partner from 2013-14 till 2017-18 and in 2020-21. Before China, the UAE was the country's largest trading partner. The US was also the largest partner in 2021-22 and 2022-23. 

The CNX Nifty is currently trading at 25476.30, up by 57.75 points or 0.23% after trading in a range of 25380.80 and 25481.80. There were 28 stocks advancing against 21 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Bajaj Finance up by 3.69%, Shriram Finance up by 3.39%, Bajaj Finserv up by 2.23%, ICICI Bank up by 1.94% and HDFC Bank up by 1.69%. On the flip side, TCS down by 3.23%, Tech Mahindra down by 2.92%, Infosys down by 2.57%, HCL Tech down by 2.54% and Wipro down by 2.30% were the top losers.

Asian markets are trading mostly in red; Jakarta Composite plunged 4.12 points or 0.05% to 7,827.66. Taiwan Weighted lost 171.24 points or 0.79% to 21,678.84 and Straits Times fell 4.74 points or 0.13% to 3,588.68, while Shanghai Composite strengthened 13.19 points or 0.49% to 2,717.28 and Nikkei 225 surged 176.95 points or 0.49% to 36,380.17.
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