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Sensex, Nifty trade higher in early deals amid value buying
Oct-07-2024

Indian equity benchmarks made optimistic start on Monday led by gains in the Asian markets as sentiment in the global markets stabilised somewhat, with no fresh escalation of the conflict between Israel and Iran over the weekend. Sensex and Nifty are trading higher with decent gains in early deals amid value buying in stocks of IT and TECK sectors. Domestic sentiments got boost as a survey by Confederation of Indian Industry (CII) showed that private capital expenditure by India Inc. is likely to increase amid improving domestic demand despite a weak external environment and rising shipping costs. Some support also came as the Reserve Bank said India’s forex reserves jumped by $12.588 billion to a new all-time high of $704.885 billion for the week ended September 27. Investors shifted their focus to the MPC policy meeting scheduled during October 7-9. As per a private report, the Reserve Bank is unlikely to cut the benchmark interest rate in its forthcoming bi-monthly monetary policy review later in the week as retail inflation is still a cause of concern.

However, broader indices -- BSE Mid & Small cap indices are trading under pressure as some cautiousness came with report that foreign investors turned net sellers in October, offloading shares worth Rs 27,142 crore in just the first three days of October due to intensifying conflict between Israel and Iran, a sharp rise in crude oil prices, and improved performance of Chinese markets. 

On the global front, Asian markets are trading higher, following the broadly positive cues from Wall Street on Friday, as traders react to stronger than expected US jobs growth data that eased concerns about the economic outlook, but dashed hopes of aggressive rate cuts in the coming months. China remains closed for the National Day holiday. Back home, in stock specific development, Macrotech Developers jumped after the realty firm achieved record pre-sales of Rs 4,290 crore in Q2FY25, a 21 per cent YoY increase, despite the traditionally inauspicious ‘Shradhh’ period. The company also reported collections of Rs 3,070 crore, up 11 per cent YoY.

The BSE Sensex is currently trading at 81940.33, up by 251.88 points or 0.31% after trading in a range of 81818.50 and 82137.77. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.19%, while Small cap index was down by 0.76%.

The top gaining sectoral indices on the BSE were IT up by 1.05%, TECK up by 0.93%, Healthcare up by 0.32%, Bankex up by 0.16% and FMCG up by 0.16%, while Utilities down by 1.06%, Consumer Durables down by 0.98%, Telecom down by 0.87%, Power down by 0.77% and PSU down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.88%, Kotak Mahindra Bank up by 1.16%, Infosys up by 1.07%, ICICI Bank up by 1.04% and HCL Technologies up by 1.02%. On the flip side, Titan Company down by 2.21%, Adani Ports & SEZ down by 1.38%, NTPC down by 0.70%, Power Grid down by 0.63% and HDFC Bank down by 0.54% were the top losers.

Meanwhile, a survey by Confederation of Indian Industry (CII) stated that India’s economic outlook for the second quarter (Q2) of the financial year (FY) 2025 appears promising, with the industry expecting greater export orders and enhanced employment sentiment in the country. In the Q2 of financial year 2025, the industry expects an increase in export orders due to the slight improvement in the external scenario. About 31 per cent of the respondents expressed their optimism about the enhanced export orders.

On the imports side, a large proportion of respondents expect status-quo in their orders in Q2, while 21 per cent of respondents expect them to increase in the said quarter. The survey also highlights the employment scenario and business prospects in Indian business entities. It noted that industries have responded positively to increased employment opportunities across various sectors, with nearly half of the survey respondents expecting an improvement in hiring during the second quarter.

It added ‘With the stability in the overall economy, employment opportunities seem to be emerging across sectors. Almost half of the respondents (49 per cent) anticipate an improvement in the employment situation within their companies during the second quarter of the current fiscal year’. The survey respondents cited factors such as improvement in consumption, especially rural demand; steady progress in monsoon; continued emphasis on reforms; and fresh sightings in private investment as the key reasons that will drive growth in the current financial year.

As per the report, while 41 per cent of the respondents expect the employment situation to remain unchanged during the same period. However, a few niggling business concerns have also been highlighted by the respondents in the survey, with protracted geopolitical tensions, spike in global commodity prices, and slowing external demand being the top three ones. As observed in the survey, about 24 per cent of businesses say that protracted geopolitical tensions are their top business concern for the next six months.

Meanwhile, about 18 per cent of businesses think that the spike in global commodity prices is also a significant worry for them. Alongside 17 per cent who expressed concerns about slowing external demand during this period, the survey observes. Around 16 per cent of businesses also cited skewed consumption demand as the big risk to their business confidence in the next six months. The 128th round of CII Business Outlook Survey was conducted in the month of September 2024, covering more than 200 firms of varying sizes and across all industry sectors and regions.

The CNX Nifty is currently trading at 25071.95, up by 57.35 points or 0.23% after trading in a range of 25049.90 and 25143.00. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were ITC up by 1.92%, Kotak Mahindra Bank up by 1.17%, Infosys up by 1.09%, ICICI Bank up by 1.01% and HCL Technologies up by 0.97%. On the flip side, Titan Company down by 2.54%, Adani Ports & SEZ down by 1.41%, Bharat Electronics down by 1.01%, ONGC down by 0.90% and Coal India down by 0.83% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 836.66 points or 2.12% to 39,472.28, Taiwan Weighted jumped 324.24 points or 1.43% to 22,626.95, Hang Seng advanced 212.59 points or 0.93% to 22,949.46, KOSPI rose 28.56 points or 1.1% to 2,598.27, Straits Times added 12.26 points or 0.34% to 3,601.39 and Jakarta Composite was up by 4.93 points or 0.07% to 7,501.02.
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