Indian markets carry forward positive trade in early noon deals

Indian equity benchmarks carried forward a positive trade in early afternoon deals, with both Sensex and Nifty holding notable gains, aided by positive cues from other Asian markets along with buying at Telecom and Consumer Durables counters. Domestic sentiment remained optimistic amid a private report stating that the government has set up an inter-ministerial group to firm up the contours of the credit guarantee scheme for micro, small and medium enterprises (MSMEs) announced in the budget. The MSME ministry will move the scheme for the expenditure finance committee's approval after consultations with stakeholders. Further, India's private sector economy continued to expand at a robust rate amid a continued sharp upturn in new orders. The flash survey data from S&P Global showed that the flash HSBC composite output index dropped slightly to 60.5 in August from 60.7 in July. However, a score above 50 indicates expansion in the sector.

On the global front, Asian markets were trading mostly in green, after Japan's private sector growth accelerated in August as services activity posted a faster growth and the contraction in manufacturing activity slowed. The flash survey results published by S&P Global showed that the Jibun Bank flash composite output index rose to 53.0 in August from 52.5 in July. A score above 50.0 indicates expansion. The flash services Purchasing Managers' Index registered 54.0 compared to 53.7 in the prior month.

The BSE Sensex is currently trading at 81090.65, up by 185.35 points or 0.23% after trading in a range of 80954.02 and 81236.45. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.58%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Telecom up by 1.70%, Consumer Durables up by 1.05%, Basic Materials up by 0.96%, Realty up by 0.64% and Consumer discretionary up by 0.59%, while Utilities down by 0.60%, Power down by 0.59%, Energy down by 0.13%, IT down by 0.07% and Oil & Gas down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.85%, Titan up by 1.63%, Ultratech Cement up by 1.28%, ICICI Bank up by 1.24% and Tata Steel up by 1.15%. On the flip side, Tata Motors down by 0.93%, NTPC down by 0.91%, TCS down by 0.84%, Power Grid down by 0.83% and Mahindra & Mahindra down by 0.71% were the top losers.

Meanwhile, Gem and Jewellery Export Promotion Council (GJEPC) in its latest data has showed that the overall gem and jewellery exports witnessed a 23.28 per cent year-on-year decline in July 2024 to $1,665.4 million on account of dampening of consumer demand following global unrest. The overall exports in the category in July 2023 stood at $2,170.71 million.

The exports are mainly affected due to decline in demand following geopolitical disturbance in key markets like the US and China. The demand in the China market has drastically slowed down due to a struggling economy. 

The overall export of cut and polished diamonds (CPD) declined 22.71 per cent in July to $907.67 million from $1,174.41 million in the year-ago period. Gold jewellery exports also witnessed a 12.06 per cent decline in July to $530.38 million from $603.12 million in the same period of last year.

The CNX Nifty is currently trading at 24825.50, up by 55.30 points or 0.22% after trading in a range of 24784.45 and 24867.35. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 2.84%, Tata Consumer Products up by 1.97%, Bharti Airtel up by 1.86%, Hero MotoCorp up by 1.69% and Titan up by 1.61%. On the flip side, Dr. Reddy's Lab down by 1.38%, NTPC down by 0.98%, Hindalco down by 0.96%, Tata Motors down by 0.94% and Coal India down by 0.85% were the top losers.

Asian markets were trading mostly in green, Hang Seng advanced 190.89 points or 1.1% to 17,581.90, Straits Times rose 1.81 points or 0.05% to 3,375.57, KOSPI increased 6.54 points or 0.24% to 2,707.67 and Nikkei 225 surged 259.21 points or 0.68% to 38,211.01, while Jakarta Composite plunged 30.72 points or 0.41% to 7,523.87, Shanghai Composite weakened 6.98 points or 0.24% to 2,849.60 and Taiwan Weighted lost 89.06 points or 0.4% to 22,148.83.