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Benchmarks continue to trade higher in morning deals
Sep-19-2024

Indian equity benchmarks trimmed some gains but continued to trade higher in morning deals, tracking positive cues from global peers. Traders took support as net direct tax collection grew 16.12 per cent to over Rs 9.95 trillion so far this fiscal on higher advance tax mop up. Refunds worth over Rs 2.05 trillion were issued, a 56.49 per cent jump over the same period last fiscal. Some support also came with Finance Minister Nirmala Sitharaman’s statement that India is standing out globally in terms of economic growth and will continue to do so in the next few years. Sector-wise, fertilizer industry stocks remained in watch after the government approved Rs 24,474.53 crore subsidy on phosphatic and potassic (P&K) fertilisers for the rabi season of 2024-25 to ensure supply of crop nutrients to farmers at affordable rates. On the global front, Asian markets are trading mostly in green after the U.S. Federal Reserve announced a whopping 50 bps rate cut and signaled further policy easing to keep the labor market from slowing too much. 

The BSE Sensex is currently trading at 83464.93, up by 516.70 points or 0.62% after trading in a range of 83332.09 and 83773.61. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.55%, while Small cap index was down by 0.89%.

The top gaining sectoral indices on the BSE were FMCG up by 0.78%, Bankex up by 0.68%, Auto up by 0.62%, Utilities up by 0.43% and Consumer Discretionary up by 0.20%, while Oil & Gas down by 1.33%, Capital Goods down by 1.26%, Industrials down by 1.21%, Energy down by 0.85% and PSU down by 0.79% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.26%, Axis Bank up by 1.41%, Bharti Airtel up by 1.39%, Titan Company up by 1.34% and ITC up by 1.26%. On the flip side, HCL Technologies down by 0.60%, TCS down by 0.48%, Adani Ports &SEZ down by 0.39%, Larsen & Toubro down by 0.32% and Bajaj Finserv down by 0.26% were the top losers.

Meanwhile, Global Trade Research Initiative (GTRI) has said that India's diamond sector is facing a severe crisis as both imports and exports have sharply declined in the past three years, which has triggered defaults, factory closures, and widespread job losses. It said that while export returns have surged, a large inventory of unprocessed rough diamonds is piling up due to reduced orders and growing competition from lab-grown diamonds.

GTRI Founder Ajay Srivastava said ‘This has triggered defaults, factory closures, and widespread job losses. Tragically, more than 60 people in Gujarat's diamond sector have committed suicide, reflecting the severe financial and emotional strain India's diamond sector is facing.’ He said that immediate action is essential to address these problems and safeguard the future of the sector.

According to the think tank data, a 24.5 per cent drop in rough diamond imports from $18.5 billion in 2021-22 to $14 billion in 2023-024 shows weaker global markets and fewer processing orders. After adjusting for re-exported rough diamonds, net imports declined by 25.3 per cent, from $17.5 billion to $13.1 billion, indicating reduced demand for processing in India. Exports of cut and polished diamonds fell by a higher margin of 34.6 per cent, from $24.4 billion in FY 2022 to $13.1 billion in FY 2024.

Additionally, the share of unsold diamonds returned to India increased from 35 per cent to 45.6 per cent during this period. It added the net exports of cut and polished diamonds dropped by 45.3 per cent, from $15.9 billion to $8.7 billion, reflecting a weak market and rising unsold inventory. The gap between net rough diamond imports and net cut and polished diamond exports widened significantly, from $1.6 billion in FY 2022 to $4.4 billion in FY2024, signalling a large inventory buildup and a lack of sufficient export orders. Moreover, it said that some challenges of the sector stem from regulatory issues and internal inefficiencies within the industry.

The CNX Nifty is currently trading at 25513.05, up by 135.50 points or 0.53% after trading in a range of 25481.70 and 25611.95. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.10%, Grasim Industries up by 1.72%, Bajaj Auto up by 1.67%, Tata Consumer Product up by 1.64% and Titan Company up by 1.37%. On the flip side, BPCL down by 1.84%, ONGC down by 1.52%, HCL Technologies down by 0.78%, Hindalco down by 0.61% and Cipla down by 0.60% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 318.81 points or 1.77% to 17,978.83, Jakarta Composite gained 59.53 points or 0.76% to 7,888.67, Shanghai Composite strengthened 16.1 points or 0.59% to 2,733.38, Straits Times rose 25.8 points or 0.72% to 3,618.22, KOSPI increased 3.02 points or 0.12% to 2,578.43, Nikkei 225 surged 911.82 points or 2.51% to 37,291.99 and Taiwan Weighted added 263.42 points or 1.22% to 21,942.26.
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