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Sensex, Nifty near intraday high points
May-23-2022

Indian equity benchmarks continued gaining rally in late morning session, with both Sensex and Nifty trading near their intraday high points, despite negative cues from other Asian markets. Domestic sentiments were optimistic, amid a private report stating that the Union government’s move to cut excise duty on petrol and diesel by Rs 8 and Rs 6 a litre, respectively, is likely to ease the retail inflation rate by up to 25 basis points (bps) from June onwards. If the move’s indirect impact on other items, including food prices, is also considered, the average inflation rate may reduce by 40 basis points during the current fiscal year.

Adding more comfort among traders, Niti Aayog CEO Amitabh Kant said that India is in the midst of a major transformation in the digital space, and strong political leadership and the commitment to continue with radical reforms would play a key role in taking the country to a leadership role in the global economy.

On the global front, Asian markets were trading mostly in red, after Taiwan's export orders declined unexpectedly in April. The data from the Ministry of Economic Affairs showed that export orders fell 5.5 percent year-on-year in April. Orders for optical, photographic, cinematographic apparatus declined 27.7 percent annually in April and those of information and communication products fell 21.5 percent.

The BSE Sensex is currently trading at 54746.91, up by 420.52 points or 0.77% after trading in a range of 54191.55 and 54826.77. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.75%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Auto up by 2.18%, Capital Goods up by 1.69%, Consumer discretionary up by 1.47%, Consumer Durables up by 1.36% and Industrials up by 1.33%, while Metal down by 7.61%, Basic Materials down by 2.97%, Oil & Gas down by 0.68%, Energy down by 0.64% and PSU down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.16%, Mahindra & Mahindra up by 2.72%, Larsen & Toubro up by 2.54%, Asian Paints up by 2.31% and Hindustan Unilever up by 2.24%. On the flip side, Tata Steel down by 11.60%, ITC down by 1.98%, Power Grid down by 0.98%, Ultratech Cement down by 0.46% and Reliance Industries down by 0.19% were the top losers.

Meanwhile, the Society of Indian Automobile Manufacturers (SIAM) has sought a reduction in CNG prices and import duties on certain raw materials for steel and plastic products while welcoming the government's decision to lower the petrol and diesel prices. The move will help ease the inflationary pressure and eventually help the common man.

SIAM said reduction in import duties for raw material for steel and plastic products and increase in export duties on steel intermediates would hopefully moderate steel prices in the domestic market. It said the auto industry also keenly looks forward to similar support on the CNG prices which have seen exponential increase in the last seven months. It added that support for CNG prices would help the common man, facilitate public transport and will enable a cleaner environment

Meanwhile, Sitharaman has announced a Rs 8 per litre cut in excise duty on petrol and Rs 6 a litre on diesel to avoid an increase in fuel prices that were necessitated due to surge in international oil prices. She said the government has reduced taxes on petrol and diesel against the backdrop of inflation.

The CNX Nifty is currently trading at 16367.55, up by 101.40 points or 0.62% after trading in a range of 16207.25 and 16382.50. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 4.31%, Larsen & Toubro up by 2.75%, Mahindra & Mahindra up by 2.67%, Hindustan Unilever up by 2.30% and Asian Paints up by 2.20%. On the flip side, JSW Steel down by 13.04%, Tata Steel down by 11.69%, ONGC down by 4.05%, Hindalco down by 3.15% and ITC down by 1.98% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 389.96 points or 1.88% to 20,327.28, Jakarta Composite lost 76.44 points or 1.1% to 6,841.70, Straits Times trembled 15.79 points or 0.49% to 3,224.79, Shanghai Composite declined 14.77 points or 0.47% to 3,131.80 and KOSPI fell 1.97 points or 0.07% to 2,637.32. On the flip side, Taiwan Weighted strengthened 69.47 points or 0.43% to 16,214.32 and Nikkei 225 surged 149.84 points or 0.56% to 26,888.87.
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