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Bourses stage recovery in early afternoon deals
May-08-2024

Erasing all of their losses, Indian equity benchmarks turned positive in early afternoon deals, with both Sensex and Nifty staging recovery, on the back of heavy buying at PSU and Oil & Gas counters, despite negative cues from other Asian markets. Traders got relief, after Fitch Ratings said that the potential big foreign inflows into Indian bonds will help the rupee recover from near a record low, but the nation’s central bank is likely to limit the extent of gains.

On the global front, Asian markets were trading mostly in red, even as Taiwan consumer price inflation eased more-than-expected in April. The data released by the Directorate General of Budget, Accounting, and Statistics showed that the consumer price index, or CPI, rose 1.95 percent year-on-year in April, slower than the 2.15 percent rise in March. The street had forecasted inflation to moderate fractionally to 2.10 percent.

Back home, auto stocks were in focus, as Federation of Automobile Dealers Association (FADA) stated that the Indian auto retail sector recorded a robust 27% year-on-year (YoY) growth in April 2024, with the combined March-April period showing a 14% YoY increase. It noted that two-wheeler sales picked up 33% on-year, while three-wheeler sales increased 9% on-year. 

The BSE Sensex is currently trading at 73526.27, up by 14.42 points or 0.02% after trading in a range of 73073.92 and 73647.89. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.74%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were PSU up by 2.43%, Oil & Gas up by 2.11%, Energy up by 2.05%, Metal up by 1.62% and Telecom up by 1.46%, while IT down by 0.38%, Consumer Durables down by 0.28%, Bankex down by 0.27%, TECK down by 0.05% and Healthcare down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.25%, Tata Motors up by 2.21%, Power Grid up by 1.85%, Reliance Industries up by 1.57% and SBI up by 1.51%. On the flip side, Asian Paints down by 2.12%, Hindustan Unilever down by 1.93%, Ultratech Cement down by 1.45%, HCL Tech. down by 1.41% and HDFC Bank down by 1.24% were the top losers.

Meanwhile, S&P Global Market Intelligence in its latest report has said that the mergers and acquisitions (M&As) in Asia-Pacific's finance sector are unlikely to pick up soon, as economic uncertainties, higher funding costs and geopolitical risks dent dealmakers' confidence. 

According to the report, deal volume in the finance sector dropped almost 14 per cent year-on-year during the quarter ended March 31, dragged by a decline in mainland China and Australia. Deal activity in the Asia-Pacific region broadly mirrored global trends. Global merger and acquisition announcements in the quarter fell to 9,022, the lowest total since the onset of the Covid-19 pandemic, which disrupted markets in the second quarter of 2020. 

The report further noted that just nine finance sector deals were announced in mainland China in the first quarter, compared with 24 the year before. In Australia, investors struck 12 deals in the sector, down from 26 a year earlier. As per the report, however India, the fastest-growing large economy in the world, could buck the trend. India reported a one-deal increase in volume year-on-year in the first quarter.

The CNX Nifty is currently trading at 22319.70, up by 17.20 points or 0.08% after trading in a range of 22185.20 and 22359.05. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.93%, BPCL up by 2.71%, NTPC up by 2.21%, Tata Motors up by 2.13% and ONGC up by 1.86%. On the flip side, Dr. Reddy's Lab down by 3.17%, Asian Paints down by 2.17%, Hindustan Unilever down by 1.87%, Grasim Industries down by 1.47% and HCL Tech. down by 1.45% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 145.1 points or 0.79% to 18,334.27, Jakarta Composite plunged 36.75 points or 0.52% to 7,086.86, Straits Times fell 41.02 points or 1.26% to 3,259.02, Shanghai Composite weakened 19.64 points or 0.63% to 3,128.10 and Nikkei 225 slipped 632.73 points or 1.66% to 38,202.37, while KOSPI increased 10.69 points or 0.39% to 2,745.05 and Taiwan Weighted added 46.98 points or 0.23% to 20,700.51.
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