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Markets trade higher with decent gains in early deals
Apr-30-2024

Indian equity benchmarks made positive start on Tuesday tracking gains in global markets and on foreign fund inflows. Foreign institutional investors (FIIs) net bought Rs 169.09 crore shares on April 29, provisional data from the NSE showed. Soon, markets added some gains and are trading higher with decent gains in early deals on account of value buying. Sentiments got boost as the National Council of Applied Economic Research (NCAER) in its monthly economic review said that the Indian economy could grow faster than 7% in this financial year. Traders took note of report that Finance Minister Nirmala Sitharaman underscored the need for a stable government to achieve the goal of becoming Viksit Bharat by 2047. However, gains were limited as Crisil in its report said that India Inc is likely to log 4-6 per cent revenue growth in the January-March quarter of 2023-24, marking the slowest quarterly growth since recovery from the Covid-19 pandemic which began in September 2021. 

On the global front, most of the Asian markets are trading higher, following the broadly positive cues from Wall Street overnight, as traders cautiously look ahead to the US Fed's monetary policy announcement on Wednesday after the central bank's preferred inflation gauge largely met expectations. Back home, construction sector stocks are in focus as rating agency ICRA said India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps. It further said that the government's infrastructure push will result in double-digit revenue growth for the construction industry in FY2025. In stock specific development, KEC International gained on Rs 1,000-crore order win.

The BSE Sensex is currently trading at 74824.35, up by 153.07 points or 0.20% after trading in a range of 74710.36 and 74855.75. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.81%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Auto up by 2.21%, Consumer Disc up by 1.52%, Realty up by 0.98%, Power up by 0.94% and Utilities up by 0.81%, while Bankex down by 0.07% was the sole losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.88%, Maruti Suzuki up by 2.04%, Tata Motors up by 1.72%, Ultratech Cement up by 0.70% and Bajaj Finance up by 0.66%. On the flip side, Bharti Airtel down by 0.76%, Titan Company down by 0.36%, Tech Mahindra down by 0.33%, Axis Bank down by 0.28% and Tata Steel down by 0.27% were the top losers.

Meanwhile, economic think tank National Council of Applied Economic Research (NCAER) in its April 2024 issue of Monthly Economic Review (MER) said that the Indian economy has continued to do well in the last two months and forecast of an above-normal monsoon augurs well for the immediate future. NCAER said a range of high-frequency indicators reveal the resilience of the domestic economy with the Purchasing Managers' Index (PMI) for manufacturing at a 16-year high and UPI, the leading digital payments system, touching the highest volume since its inception in 2016.

According to NCAER, Goods and Services Tax (GST) collections reached Rs 1.8 lakh crore in March, the second best since its rollout in 2017, while UPI recorded 13.4 billion transactions (in volume) in March 2024, the highest since its introduction, registering a growth of 55.3 per cent on a year-on-year basis. NCAER Director General Poonam Gupta said ‘These high frequency indicators, coupled with a more benign global outlook projected by the IMF and WTO bode well for the Indian economy during the current year’.

According to the report, Consumer Price Index (CPI) headline inflation was down to 4.9 per cent in March from 5.1 per cent in February while core inflation came down to 3.2 per cent during the same period. The report said employment indicators again showed mixed trends with an increase in the number of net new subscribers under the Employees' Provident Fund Organisation (EPFO) on a year-on-year basis. However, it added the overall online hiring activities as per the Naukri JobSpeak Index, moderated year-on-year.

The CNX Nifty is currently trading at 22718.75, up by 75.35 points or 0.33% after trading in a range of 22661.80 and 22720.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.95%, Maruti Suzuki up by 2.34%, Bajaj Auto up by 1.97%, Hero MotoCorp up by 1.89% and Tata Motors up by 1.69%. On the flip side, Apollo Hospital down by 0.79%, Bharti Airtel down by 0.71%, Titan Company down by 0.63%, Tech Mahindra down by 0.28% and Tata Steel down by 0.24% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 405.93 points or 1.07% to 38,340.69, Jakarta Composite jumped 90.66 points or 1.27% to 7,246.44, Taiwan Weighted gained 43.77 points or 0.21% to 20,539.29, Hang Seng rose 34.5 points or 0.19% to 17,781.41, KOSPI increased 19.13 points or 0.71% to 2,706.57 and Straits Times added 12.31 points or 0.38% to 3,294.36, while Shanghai Composite weakened 3.78 points or 0.12% to 3,109.26.
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