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Domestic indices trade higher in early deals
May-06-2024

Indian markets started the new week on positive note tracking gains in global peers. Sensex and Nifty trimmed some of their gains and are trading higher with marginal gains in early deals as investors are eyeing the Services PMI data to be out later in the day for more directional cues. Some support came in as data from National Securities Depository (NSDL) showed that foreign portfolio investors (FPIs) have again returned as net buyers in the Indian stock market in May. Till May 3, they bought equities worth Rs 1,156 crore in India. In April, FPIs turned net sellers in Indian stocks, as the ongoing geopolitical crisis in the Middle East then likely pushed investors to take money off their portfolios. However, broader indices -- BSE Mid and Small cap indices are underperforming larger peers with significant losses of over a percent each. There was some cautiousness as the Reserve Bank of India (RBI) said India’s forex reserves dropped $2.412 billion to $637.922 billion as on April 26, in the third consecutive weekly decline in the reserves. 

On the global front, most of the Asian markets are trading in green, following the broadly positive cues from global markets on Friday, on easing concerns about the outlook for US Fed interest rates after data showed a slowdown in U.S. employment growth in April and U.S. service sector activity unexpectedly contracted in April. Meanwhile, the markets in Japanese and South Korea are closed for Children's Day holiday. Back home, banking stocks are in focus as the Reserve Bank of India's weekly statistical supplement showed Indian banks' loans rose 19% in the two weeks to April 19 from a year earlier, while deposits rose 13.3%. As per the data, outstanding loans fell Rs 98,700 crore ($11.84 billion) to Rs 16,400,000 crore in the two weeks to April 19. In stock specific development, Birla Corporation surged on reporting a 127% jump in its consolidated net profit for the quarter ending March 2024.

The BSE Sensex is currently trading at 74037.38, up by 159.23 points or 0.22% after trading in a range of 73973.79 and 74359.69. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.41%, while Small cap index was down by 1.30%.

The top gaining sectoral indices on the BSE were TECK up by 0.98%, IT up by 0.98%, Bankex up by 0.27% and Realty up by 0.04% while, PSU down by 3.46%, Consumer Durables down by 2.37%, Utilities down by 2.32%, Oil & Gas down by 2.22% and Energy down by 2.17% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 4.36%, TCS up by 1.65%, Infosys up by 1.52%, Mahindra & Mahindra up by 1.19% and HCL Technologies up by 0.90%. On the flip side, Titan Company down by 4.69%, SBI down by 2.90%, Power Grid down by 2.17%, NTPC down by 1.67% and Tata Steel down by 0.72% were the top losers.

Meanwhile, India has urged the Asian Development Bank (ADB) not to overlook its focus on reduction of remaining poverty while promoting sustainable growth for the member nations in the Asia Pacific region. Making intervention at the Board of Governors Business Session at the 57th Annual Meeting of ADB, India's Temporary Alternate Governor Vikas Sheel said the bank has played a critical role in facilitating measures of faster economic development, reducing poverty and promoting regional cooperation while effectively addressing the challenges and delivery of global public goods. He said ‘We note with concern that economic growth and dealing with the remaining poverty do not find a place in the enhanced focus areas of the ADB in the review of its Strategy 2030. We urge ADB not to overlook the ADB's charter mandate on growth and shared prosperity’.

He assured India's continued support to work towards accelerated inclusive and sustainable growth in Asia and the Pacific. Observing that ADB is expected to grow bigger, better and bolder in line with the New Delhi declaration of the G20, Sheel said it can thus play a much bigger role in addressing the ambitious climate agenda. He said ‘Based on the detailed recommendations made by the Independent Expert Group, appointed under India's G20 presidency, we are happy to note that ADB is proactively implementing recommendations of IEG to live up to the aspirations of being the trusted development partner of the fast-growing economies of Asia and of transforming itself into a climate bank’.

He added ADB shall have to not only continue to pursue these reform measures but would also have to assist members in catalyzing significant private sector investments, especially for climate finance in addition to concessional financing, coupled with technology transfer in line with the global challenges funding mechanism recommended by the G 20. In line with the commitment to support the smaller economies in the region, he said, India has increased its contribution to the Asian Development Fund (ADF) 14 through $58.17 million.

The CNX Nifty is currently trading at 22504.25, up by 28.40 points or 0.13% after trading in a range of 22433.95 and 22588.80. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 4.40%, Britannia Industries up by 2.41%, Infosys up by 1.78%, TCS up by 1.67% and LTIMindtree up by 1.32%. On the flip side, Titan Company down by 4.74%, Coal India down by 3.81%, Adani Enterprises down by 3.22%, Adani Ports & SEZ down by 2.98% and ONGC down by 2.64% were the top losers.

Asian markets are trading mostly higher; Taiwan Weighted surged 235.24 points or 1.16% to 20,565.56, Shanghai Composite strengthened 32.54 points or 1.04% to 3,137.36, Jakarta Composite gained 18.82 points or 0.26% to 7,153.54 and Straits Times rose 11.16 points or 0.34% to 3,304.09, while Hang Seng declined 11.82 points or 0.06% to 18,464.10.
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