HOME > MARKETS > MARKET COMMENTARY
  MARKET COMMENTARY
EQUITY
Markets continue to trade higher in late morning deals
Apr-24-2024

Domestic equity markets remained in green and were trading higher by around half a percent in late morning deals on account of buying by funds and retail investors. Hectic buying in JSW Steel, Tata Steel, Bajaj Finance and Power Grid supported the markets to maintain their gains. Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.75-1.00%. Positive cues from the global markets supported domestic sentiments. Sentiments got boost as weak U.S. business activity data revived rate cut hopes. Traders took a note of private report that India's GDP growth can average at least 7.5% per annum for this decade if the economy witnesses a faster-than-expected revival of private investment. 

On the global front, Asian markets were trading higher following positive cues from the US markets overnight. Back home, on the BSE sectoral front, traders were seen pilling up position in Metal, Basic Materials, Industrials, Healthcare and Capital Goods, while selling was witnessed in Telecom, TECK and IT. 

The BSE Sensex is currently trading at 74068.11, up by 329.66 points or 0.45% after trading in a range of 73861.91 and 74121.61. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.76%, while Small cap index up by 0.98%.

The top gaining sectoral indices on the BSE were Metal up by 2.00%, Basic Materials up by 1.47%, Industrials up by 1.12%, Healthcare up by 0.99% and Capital Goods up by 0.96%, while Telecom down by 0.99%, TECK down by 0.28% and IT down by 0.13% were the few losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 2.34%, Tata Steel up by 2.05%, Bajaj Finance up by 1.90%, Bajaj Finserv up by 1.66% and Power Grid up by 1.44%. On the flip side, Hindustan Unilever down by 0.54%, Infosys down by 0.35%, TCS down by 0.16%, Bharti Airtel down by 0.15% and Maruti Suzuki down by 0.15% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that capital expenditures (capex) for electric vehicle (EV) components are likely to exceed Rs 25,000 crore in the next 3-4 years, for capacity building, technology and product enhancements. About 45-50% of this, would be towards battery cells. The PLI scheme, recent e-vehicle policy and state incentives would also contribute to accelerating capex.  

It said spurred by government support in the form of subsidies, enhanced awareness, and increasing product launches, the EV segment in India has seen a significant upturn in prospects over the past two years. A confluence of factors such as improving product portfolio, charging infrastructure, and financing availability and a gradual decline in battery prices are likely to aid in the acceleration of EV penetration across segments over the medium term. EV penetration reached 4.7% in FY2024, with much of it driven by the electric two-wheeler (2W) segment, although e-three-wheelers (e-3Ws) and electric buses have also contributed to the same.

According to the report, at present, only around 30-40% of the EV supply chain is localised. Chassis components that require minimal technology upgradation are manufactured locally. There has been substantial localisation in traction motors, control units, and battery management systems over the years. However, advance chemistry batteries, which remain the most critical and the costliest component, accounting for almost 35-40% of the vehicle price, are imported. The low localisation levels give rise to manufacturing opportunities for domestic auto component suppliers. For parts that are already used in internal combustion engine (ICE) vehicles, there could be technological advancements in certain cases, resulting in higher content per vehicle.

ICRA expects EVs to account for around 25% of domestic 2W sales and 15% of passenger vehicle sales by 2030, translating into strong market potential for EV components. Accordingly, the rating agency projects the Indian e-2W component market potential to exceed Rs 1,00,000 crore by 2030, while the e-passenger vehicle (e-PV) component is foreseen at another Rs 50,000 crore at least, in terms of revenue potential for ancillaries. The actual growth for domestic auto component suppliers would depend on localisation levels and value addition.

The CNX Nifty is currently trading at 22461.75, up by 93.75 points or 0.42% after trading in a range of 22399.85 and 22476.45. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Cipla up by 2.73%, JSW Steel up by 2.41%, Hindalco up by 2.16%, Tata Steel up by 2.14% and Bajaj Finance up by 1.70%. On the flip side, Tata Consumer down by 4.56%, Hindustan Unilever down by 0.52%, Infosys down by 0.39%, HDFC Life Insurance down by 0.36% and TCS down by 0.31% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 352.89 points or 2.1% to 17,181.82, Nikkei 225 surged 907.92 points or 2.42% to 38,460.08, Taiwan Weighted added 532.46 points or 2.72% to 20,131.74, Straits Times rose 28.54 points or 0.87% to 3,301.26, KOSPI increased 51.31 points or 1.96% to 2,674.33, Shanghai Composite strengthened 16.02 points or 0.53% to 3,038.00 and Jakarta Composite gained 57.73 points or 0.81% to 7,168.54. 
  RELATED NEWS >>
Most Viewed >>
May 03 , 2024
Big miss! 93% smallcap mutual funds fail to be
May 03 , 2024
Nippon India Mutual Fund changes fund manager
May 02 , 2024
BSE now corners a fifth of derivatives market
May 02 , 2024
Smallcaps’ resilient show in April has 500 sto
EXPLORE
© CITRUS INTERACTIVE
Designed & Developed Accord Fintech Pvt. Ltd.