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Markets trade in green in late morning deals
May-06-2024

Indian equity markets traded higher in late morning deals on account of hectic buying in Kotak Mahindra Bank, TCS, Indusind Bank and Infosys companies’ stocks. Positive cues from the global markets supported domestic sentiments. Traders were getting some encouragement with report that growth in India's dominant services industry softened in April but remained sturdy on robust domestic and foreign demand, lifting business confidence to a three-month high. The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, fell to 60.8 in April from 61.2 in March, confounding a preliminary estimate for a rise to 61.7. Despite the decline in the headline reading, the figure still marked one of the fastest growth rates in just under 14 years. However, broader indices were trading in red with BSE Mid cap and Small cap index falling in the range of 0.65-0.70%. On the BSE sectoral front, traders were seen pilling up position in Realty, TECK, IT, Bankex and FMCG, while selling was witnessed in Consumer Durables, PSU, Utilities, Oil & Gas and Energy.

On the global front, Asian markets were trading mostly in green as a softer-than-expected U.S. jobs report fueled hopes that the Federal Reserve could start cutting rates soon. Back home, in the stock specific development, Godrej Properties surged after the company showcased decent quarterly earnings for the quarter ending March 2023-24 (Q4FY24).

The BSE Sensex is currently trading at 74150.09, up by 271.94 points or 0.37% after trading in a range of 73973.79 and 74359.69. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.65%, while Small cap index down by 0.69%.

The top gaining sectoral indices on the BSE were Realty up by 1.40%, TECK up by 1.20%, IT up by 0.99%, Bankex up by 0.73% and FMCG up by 0.44%, while Consumer Durables down by 3.00%, PSU down by 2.29%, Utilities down by 1.37%, Oil & Gas down by 1.21% and Energy down by 1.17% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 5.35%, TCS up by 2.03%, Indusind Bank up by 1.74%, Infosys up by 1.63% and Mahindra & Mahindra up by 1.56%. On the flip side, Titan down by 6.26%, SBI down by 2.92%, NTPC down by 2.00%, Power Grid down by 1.32% and Larsen & Toubro down by 1.12% were the top losers.

Meanwhile, the government has asserted that India has one of the most stringent norms for pesticides residues in food items and rejected reports suggesting that food regulator Food Safety and Standards Authority of India (FSSAI) allows high level of residues in spices and herbs.

The clarification comes amid a ban imposed by the Hong Kong food regulator on certain spice mix of two leading Indian brands MDH and Everest on alleged presence of pesticide Ethylene Oxide in their samples. The Singapore food regulator too ordered a recall of one spice product of the Everest brand. FSSAI is currently collecting samples of branded spices, including that of MDH and Everest, sold in the domestic markets to ensure they comply with its quality norms. It does not regulate the quality of exported spices.

The Union Health Ministry clarified that maximum residue limits are different for various food products based on risk assessment. The ministry said ‘Some media reports are claiming that the Food Safety and Standards Authority of India (FSSAI) allows 10 times more pesticide residue in herbs and spices. Such reports are false and malicious.’

It asserted India has one of the most stringent standards of Maximum Residue Limits (MRLs) in the world. The ministry stated ‘MRLs of pesticides are fixed differently for different food commodities based on their risk assessments.’

The CNX Nifty is currently trading at 22521.00, up by 45.15 points or 0.20% after trading in a range of 22433.30 and 22588.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Britannia up by 7.60%, Kotak Mahindra Bank up by 5.43%, TCS up by 1.81%, Indusind Bank up by 1.66% and Infosys up by 1.61%. On the flip side, Titan down by 6.41%, SBI down by 2.83%, Adani Ports down by 2.59%, Adani Enterprises down by 2.51% and HDFC Life Insurance down by 2.09% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 214.66 points or 1.06% to 20,544.98, Straits Times rose 8.53 points or 0.26% to 3,301.46, Shanghai Composite strengthened 32.54 points or 1.04% to 3,137.36 and Jakarta Composite gained 16.1 points or 0.23% to 7,150.82. However, Hang Seng declined 9.01 points or 0.05% to 18,466.91. 
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