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Positive trade sustains in Indian markets during early noon deals
Apr-24-2024

A positive trade sustained in Indian equity markets during early afternoon deals, with both Sensex and Nifty holding notable gains of over 0.40% each, aided by heavy buying at Metal and Basic Materials counters along with firm cues from other Asian markets. Traders were positive, as Reserve Bank of India (RBI) in the article themed, 'State of the economy', said conditions in India are shaping up for an extension of the trend upshift that took the average real GDP growth above 8 per cent during 2021-24.

However, upside remained capped, as the country's agriculture exports declined by 8.8 per cent to $43.7 billion during April-February period of 2023-24 fiscal due to factors like the Red Sea crisis, Russia-Ukraine war, and domestic restrictions imposed on critical items like rice, wheat, sugar and onion. According to the data of the commerce ministry, the exports stood at $47.9 billion in April-February 2022-23.

On the global front, Asian markets were trading higher, after South Korea's consumer sentiment held steady in April after easing in the previous month. The survey results from the Bank of Korea showed that the consumer confidence index stood at 100.7 in April, unchanged from March. The consumer confidence survey was conducted between April 8 and 16 among 2,500 households.

The BSE Sensex is currently trading at 74045.15, up by 306.70 points or 0.42% after trading in a range of 73861.91 and 74121.61. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged by 0.96%, while Small cap index was up by 0.95%.

The top gaining sectoral indices on the BSE were Metal up by 2.60%, Basic Materials up by 1.62%, Industrials up by 1.38%, PSU up by 1.29% and Capital Goods up by 1.27%, while Telecom down by 0.96%, TECK down by 0.37% and IT down by 0.22% were the few losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 3.10%, Tata Steel up by 2.79%, Power Grid up by 2.26%, Ultratech Cement up by 1.61% and Bajaj Finserv up by 1.41%. On the flip side, Hindustan Unilever down by 0.52%, Infosys down by 0.46%, Tech Mahindra down by 0.40%, TCS down by 0.36% and Titan Co down by 0.21% were the top losers.

Meanwhile, based on review and empirical analysis of countercyclical capital buffer (CCyB) indicators, Reserve Bank of India (RBI) has been decided that it is not necessary to activate CCyB at this point in time. 

The framework on the CCyB was put in place by the RBI in terms of guidelines in February 2015, wherein, it was advised that the CCyB would be activated as and when the circumstances warranted and that the decision would normally be pre-announced. The provision has not been used by the RBI since it was introduced in 2015. 

As per the RBI, the aim of the CCyB regime is two-fold. Firstly, it requires banks to build up a buffer of capital in good times, which may be used to maintain the flow of credit to the real sector in difficult times. Secondly, it achieves the broader macroprudential goal of restricting the banking sector from indiscriminate lending in periods of excess credit growth that have often been associated with the building up of system-wide risk.

The CNX Nifty is currently trading at 22459.40, up by 91.40 points or 0.41% after trading in a range of 22399.85 and 22476.45. There were 35 stocks advancing against 14 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were JSW Steel up by 3.40%, Tata Steel up by 3.01%, Cipla up by 2.81%, Hindalco up by 2.59% and Power Grid up by 2.09%. On the flip side, Tata Consumer Products down by 4.49%, Infosys down by 0.58%, Hindustan Unilever down by 0.55%, TCS down by 0.51% and Tech Mahindra down by 0.42% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 378.58 points or 2.25% to 17,207.51, Taiwan Weighted added 532.46 points or 2.64% to 20,131.74, Jakarta Composite gained 39.21 points or 0.55% to 7,150.02, Straits Times rose 30.19 points or 0.92% to 3,302.91, Shanghai Composite strengthened 20.58 points or 0.68% to 3,042.56, KOSPI increased 52.73 points or 1.97% to 2,675.75 and Nikkei 225 surged 907.92 points or 2.36% to 38,460.08.
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