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Markets trim opening gains to trade tad higher in early deals
Apr-18-2024

Indian equity benchmarks snapped 3-day losing streak with positive start on Thursday as investors indulged in bargain buying amid firm cues from Asian counterparts. Sentiments got a boost as the International Monetary Fund raised India’s FY25 GDP growth forecast by 30 bps to 6.8 percent from its January forecast of 6.5 percent, citing bullish domestic demand conditions and a rising working-age population. With this, India continues to be the fastest growing economy of the world, ahead of China's growth projection of 4.6 percent during the same period. Besides, UN Trade and Development (UNCTAD) in its report said that India grew by 6.7 per cent in 2023 and is expected to expand by 6.5 per cent in 2024, continuing to be the fastest-growing major economy in the world. 

However, markets soon trimmed their most of the gains and are trading marginally higher in early deals amid uncertainty of US rate cut timing following remarks by US Federal Reserve Chair Jerome Powell and precarious situation in the Middle East (Iran-Israel) region. Foreign fund outflows also dented sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 4,468.09 crore on April 16, provisional data from the NSE showed. 

On the global front, all the Asian markets are trading higher, despite the broadly negative cues from Wall Street overnight, with the markets advancing for the first time in a week as currencies in the region strengthen against the US dollar. Back home, stocks related to space sector remained in focus as the government has notified amendments to the foreign direct investment policy in the space sector to attract offshore investors in satellite manufacturing and satellite launch vehicles segments. In stock specific development, Just Dial zoomed on healthy Q4 numbers. Just Dial reported a 38.44 per cent rise in consolidated net profit to Rs 115.74 crore in the fourth quarter ended March 31, 2024.

The BSE Sensex is currently trading at 73016.79, up by 73.11 points or 0.10% after trading in a range of 72968.97 and 73295.80. 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 0.52%, while Small cap index was up by 0.85%.

The top gaining sectoral indices on the BSE were Telecom up by 1.69%, Oil & Gas up by 1.50%, Utilities up by 1.18%, PSU up by 0.95% and Energy up by 0.92%, while Healthcare down by 0.44%, FMCG down by 0.21%, Consumer Durables down by 0.19% and Bankex down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.55%, Mahindra & Mahindra up by 1.15%, Bharti Airtel up by 0.85%, JSW Steel up by 0.78% and Infosys up by 0.76%. On the flip side, Nestle down by 1.50%, Titan Company down by 1.25%, Axis Bank down by 1.04%, HCL Technologies down by 0.84% and Tech Mahindra down by 0.63% were the top losers.

Meanwhile, citing bullish domestic demand conditions and a rising working-age population, the International Monetary Fund (IMF) in its latest edition of the World Economic Outlook has raised India's growth projection to 6.8 per cent for 2024. IMF in its January update had projected 6.5 per cent growth for India in 2024. With this, India continues to be the fastest growing economy of the world, ahead of China's growth projection of 4.6 per cent during the same period. It said ‘Growth in India is projected to remain strong at 6.8 per cent in 2024 and 6.5 per cent in 2025, with the robustness reflecting continuing strength in domestic demand and a rising working-age population’. At the same time, growth in emerging and developing Asia is expected to fall from an estimated 5.6 per cent in 2023 to 5.2 per cent in 2024 and 4.9 per cent in 2025, a slight upward revision compared with the January 2024 WEO Update.

As per the IMF outlook, ‘Growth in China is projected to slow from 5.2 per cent in 2023 to 4.6 per cent in 2024 and 4.1 per cent in 2025, as the positive effects of one-off factors - including the post pandemic boost to consumption and fiscal stimulus - ease and weakness in the property sector persists’. Global growth, estimated at 3.2 per cent in 2023, is projected to continue at the same pace in 2024 and 2025. Pierre-Olivier Gourinchas, chief economist of the IMF said ‘Despite gloomy predictions, the global economy remains remarkably resilient, with steady growth and inflation slowing almost as quickly as it rose. The journey has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by Russia's war on Ukraine, a considerable surge in inflation, followed by a globally synchronized monetary policy tightening’.

He said global growth bottomed out at the end of 2022, at 2.3 per cent, shortly after median headline inflation peaked at 9.4 per cent. He observed growth this year and next will hold steady at 3.2 per cent, with median headline inflation declining from 2.8 per cent at the end of 2024 to 2.4 per cent at the end of 2025. Most indicators continue to point to a soft landing. China's economy remains affected by the downturn in its property sector. Credit booms and busts never resolve themselves quickly, and this one is no exception.

The CNX Nifty is currently trading at 22180.35, up by 32.45 points or 0.15% after trading in a range of 22172.20 and 22270.65. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.95%, HDFC Life Insurance up by 2.60%, Power Grid up by 2.22%, Adani Ports & SEZ up by 1.81% and Mahindra & Mahindra up by 1.16%. On the flip side, Nestle down by 1.39%, Apollo Hospital down by 1.18%, Titan Co down by 1.09%, HCL Technologies down by 1.08% and Axis Bank down by 0.89% were the top losers.

All Asian markets are trading higher; Hang Seng jumped 217.45 points or 1.34% to 16,469.29, Nikkei 225 surged 213.82 points or 0.56% to 38,175.62, Taiwan Weighted rose 48.80 points or 0.24% to 20,262.13, KOSPI increased 42.93 points or 1.66% to 2,627.11, Jakarta Composite gained 40.06 points or 0.56% to 7,170.90, Straits Times strengthened 38.95 points or 1.23% to 3,193.64 and Shanghai Composite was up by 16.95 points or 0.55% to 3,088.33.
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