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Markets trade in fine-fettle in early deals; Metal stocks led gainers
Sep-20-2024

Indian equity benchmarks made positive start on Friday following overnight gains on the Wall Street. Sensex and Nifty soon gained traction and are trading higher with gains of around half a percent each in early deals on account of value buying. Metal and Realty sector stocks leading the gainers. Sentiments got boost as a report by S&P Global noted that India is set to become the third largest economy and transition to the upper-middle-income category by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal. India posted GDP growth of 8.2 per cent in FY2024, exceeding the government’s earlier estimate of 7.3 per cent, sustained reforms are crucial for India’s economic momentum to continue. Traders took note of Economic Affairs Secretary Ajay Seth’s statement that the Fed rate cut would not have a significant impact on foreign inflows into India. 

On the global front, Asian markets are trading mixed amid the Bank of Japan maintained its key short-term interest rate at around 0.25% to 0.1%, as expected. Besides, China’s central bank left its main benchmark lending rates unchanged, as against expectations of some reduction in rates. Meanwhile, data from the Ministry of Internal Affairs & Communications said the annual inflation in Japan rose to 3% in August (the highest level since October 23) from 2.8% in the prior three months.

Back home, telecom stocks are trading under pressure after the Supreme Court has dismissed curative petitions from telecom firms regarding adjusted gross revenues (AGR), which includes non-telecom revenue. This decision reaffirms the financial liabilities facing telecom companies, particularly amid ongoing struggles for cash-strapped operators like Vodafone. In stock specific development, IIFL Finance jumped as the RBI lifted restrictions on its gold loan operations. The company can now resume its lending activities after addressing previous regulatory concerns regarding loan processes.

The BSE Sensex is currently trading at 83714.18, up by 529.38 points or 0.64% after trading in a range of 83187.64 and 83736.35. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.30%, while Small cap index was up by 0.61%.

The top gaining sectoral indices on the BSE were Metal up by 1.69%, Realty up by 1.25%, Capital Goods up by 0.90%, Energy up by 0.81% and Basic Materials up by 0.77%, while Consumer Durables down by 0.22% and Telecom down by 0.16% were the only losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 3.35%, Tata Steel up by 1.50%, Nestle up by 1.22%, Larsen & Toubro up by 1.20% and Mahindra & Mahindra up by 1.04%. On the flip side, NTPC down by 0.93%, Tata Motors down by 0.55%, Indusind Bank down by 0.45%, Bajaj Finance down by 0.37% and Axis Bank down by 0.36% were the top losers.

Meanwhile, expressing optimism over India’s growth prospects, S&P Global in a report has said that India is on track to becoming the third-largest economy by 2030-31, driven by a projected annual growth rate of 6.7 per cent this fiscal. The report also said that with 8.2 per cent growth rate in FY2024, continued reforms are crucial to improving business transactions and logistics, boosting private sector investment, and reducing reliance on public capital.

It said equity markets are expected to stay dynamic and competitive due to strong growth prospects and better regulation, and foreign inflows into Indian government bonds have surged since the country joined major emerging market indexes, with further growth anticipated. The first edition of 'India Forward: Emerging Perspectives' report said to maximize trade benefits, India must develop infrastructure and geopolitical strategies, particularly regarding its extensive coastline. It added nearly 90 per cent of India's trade is seaborne, necessitating robust port infrastructure to manage increasing exports and bulk commodity imports.

Noting that India faces rising domestic energy demands and can look to sustainable technologies, including renewables and low-emission fuels, balancing energy security with its energy transition plans, the report stated that agriculture will rely on advanced technologies and new policies to improve infrastructure and productivity. It also said the need is to address critical infrastructure issues such as irrigation, storage, and supply distribution to ensure food security and economic stability.

The CNX Nifty is currently trading at 25537.65, up by 121.85 points or 0.48% after trading in a range of 25426.60 and 25554.60. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 3.12%, Coal India up by 2.63%, HDFC Life Insurance up by 2.46%, Tata Steel up by 1.52% and Hindalco up by 1.43%. On the flip side, NTPC down by 0.91%, Cipla down by 0.90%, Tata Motors down by 0.56%, Indusind Bank down by 0.52% and Bajaj Finance down by 0.41% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 712.17 points or 1.92% to 37,867.50, Hang Seng jumped 261.98 points or 1.45% to 18,275.14, Taiwan Weighted rose 136.24 points or 0.62% to 22,178.93 and KOSPI increased 22.46 points or 0.87% to 2,603.26. On the other hand, Jakarta Composite plunged 123.54 points or 1.56% to 7,781.85, Straits Times fell 17.19 points or 0.47% to 3,615.99 and Shanghai Composite was down by 6.33 points or 0.23% to 2,729.69.
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