Benchmarks remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, tracking a largely firm trend in global markets and renewed foreign fund inflows. According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth Rs 5,318.14 crore on Friday. Traders took support with Defence Minister Rajnath Singh stating that the Indian economy has now improved to Fabulous Five from the Fragile Five before 2014. The minister also added that the Indian economy is one of the fastest-growing large economies now. He also said the government has taken various steps to improve the ease of doing business in the country. Traders also took a note of the government data showed that fiscal deficit narrowed to 17.2 percent of the full year estimate in the first four months of the year, compared with 33.9 percent during similar period in the previous year, as spending remained contained due to elections. However, gains remain capped as some concern came with private-sector survey showed India's manufacturing activity growth eased to a three-month low in August as demand softened significantly, casting another shadow over the otherwise robust economic outlook. The HSBC final India Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell for a second month in August, dropping to 57.5 from July's 58.1 and below a preliminary estimate of 57.9. On the global front, Asian markets are trading mostly in green amid optimism over potential U.S. rate cuts and a continued decline in oil prices on prospect of higher OPEC+ supply.  

The BSE Sensex is currently trading at 82587.24, up by 221.47 points or 0.27% after trading in a range of 82499.73 and 82725.28. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.08%, while Small cap index was down by 0.23%.

The top gaining sectoral indices on the BSE were FMCG up by 0.86%, IT up by 0.49%, Energy up by 0.36%, Basic Materials up by 0.15% and Oil & Gas up by 0.13%, while Telecom down by 1.96%, Capital Goods down by 0.64%, Industrials down by 0.63%, Power down by 0.54% and Metal down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.09%, HCL Technologies up by 2.39%, Bajaj Finance up by 2.07%, ITC up by 1.83% and Tech Mahindra up by 1.13%. On the flip side, Tata Motors down by 1.38%, Bharti Airtel down by 1.22%, Mahindra & Mahindra down by 1.14%, NTPC down by 0.82% and Larsen & Toubro down by 0.54% were the top losers.

Meanwhile, Sanjay Shah, chairman of the Federation of All India Tea Traders Association (FAITTA), has said that sluggish growth in domestic consumption, rising food inflation and slow recovery of exports post the Covid pandemic are some of the challenges faced by the tea industry. He said tea producer associations and the Tea Board India have been concerned over the muted demand growth in the country.

He said ‘As retailers within the FAITTA fold, we are witnessing the market movements from close quarters. It is a fact that loose tea consumption has been giving way to packet tea.’ He said rising levels of food inflation also remain a concern area, as it adversely impacts consumption.

He also said given that incomes do not adjust as fast as prices, high inflation in essentials tend to adversely impact demand for non-essentials. Even within essentials, consumers may shift to lower priced non-premium products. Moreover, he also maintained that there are underlying concerns over the ability of the market to absorb the several rounds of price increases (of tea), which have been inevitable given the sharp rise in main raw material prices last year.

The CNX Nifty is currently trading at 25294.85, up by 58.95 points or 0.23% after trading in a range of 25281.65 and 25333.65. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.06%, HCL Technologies up by 2.30%, Hero MotoCorp up by 2.25%, Bajaj Finance up by 2.21% and ITC up by 1.85%. On the flip side, Tata Motors down by 1.53%, Dr. Reddy's Lab down by 1.35%, Hindalco down by 1.24%, Bharti Airtel down by 1.19% and Mahindra & Mahindra down by 1.09% were the top losers.

Asian markets are trading mostly in green; Straits Times rose 14.31 points or 0.42% to 3,457.24, KOSPI increased 10.77 points or 0.4% to 2,685.08, Nikkei 225 surged 16.54 points or 0.04% to 38,664.29 and Jakarta Composite gained 34.2 points or 0.45% to 7,704.93.

On the flip side, Hang Seng declined 318.35 points or 1.8% to 17,670.72, Shanghai Composite weakened 17.71 points or 0.63% to 2,824.50 and Taiwan Weighted lost 41.84 points or 0.19% to 22,226.25.