Domestic indices trade flat in late morning deals

Domestic equity markets came off from day’s highs and traded flat in late morning deals on account of some profit booking at higher level. Selling in HDFC Bank, ICICI Bank, Larsen & Toubro and Bharti Airtel companies’ stocks put some pressure on markets. However, broader indices were trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.20-0.40%. Traders took note of report that India's ranking in the Global Innovation Index has improved by 42 positions over the last 9 years, with the country now ranked first among the 38 lower-middle-income economies. According to the index released, India holds the 39th position in the Global Innovation Index (GII) 2024, a remarkable improvement from its 81st position in 2015. The index evaluates the innovation performance of around 133 global economies, showcasing their strengths and weaknesses in fostering innovation. On the BSE sectoral front, traders were seen pilling up positions in  Metal, IT, Oil & Gas, Basic Materials and  Consumer Durables, while selling was witnessed in Realty, Telecom, Bankex, Capital Goods and Utilities. 

On the global front, Asian markets were trading mixed despite positive cues from the US markets overnight. Back home, IT stocks were in focus after Accenture raising its revenue guidance for FY25 to 3-6 per cent, exceeding its previous guidance.    

The BSE Sensex is currently trading at 85753.90, down by 82.22 points or 0.10% after trading in a range of 85720.95 and 85978.25. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.21%, while Small cap index up by 0.37%.

The top gaining sectoral indices on the BSE were Metal up by 1.13%, IT up by 1.00%, Oil & Gas up by 0.93%, Basic Materials up by 0.91% and Consumer Durables up by 0.85%, while Realty down by 1.42%, Telecom down by 0.62%, Bankex down by 0.29%, Capital Goods down by 0.15% and Utilities down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Titan up by 2.29%, Sun Pharma up by 1.68%, Bajaj Finserv up by 1.48%, Infosys up by 1.47% and Indusind Bank up by 1.42%. On the flip side, Power Grid down by 2.89%, Bharti Airtel down by 2.05%, Larsen & Toubro down by 1.42%, HDFC Bank down by 0.95% and ICICI Bank down by 0.85% were the top losers.

Meanwhile, Former RBI Governor Raghuram Rajan has said that India has done well in areas like infrastructure in the last 10 years, but it also needs to do more in other sectors to boost local manufacturing and job creation. He further said the government's focus on production, whether it is goods or services is a good thing, but it is also important to do it the right way. He also pitched for more ease of doing business, especially with regard to government policies and less fear of raids by inspectors or tax authorities, etc. Observing that there is a package which propels economic growth, he said ‘If we focus on that, I think that would strengthen the concept of Make in India.’

The former RBI governor also emphasised that the government need not dismiss criticism of its policy by saying that there is some vested interest or some hidden agenda. Under the 'Make in India' initiatives a series of measures have been taken by the government to boost local manufacturing and exports. These initiatives include the rollout of production-linked incentive (PLI) schemes for 14 sectors, ease of foreign direct investment (FDI) norms, reduction of compliance burden, single window approval system, and the national logistics policy.

Asked whether 7 per cent economic growth is enough for India to achieve the third largest economy status in this decade and become a developed nation by 2047, Rajan said ‘if we grow at 7 per cent, then we will be past Germany and Japan in 2-3 years. That is not something which is out of the realm of possibility, it will happen.’ Currently, the size of Germany's economy is about $4.5 trillion and Japan about $4.2 trillion. The size of India's economy is $3.7 trillion at present.

The CNX Nifty is currently trading at 26217.90, up by 1.85 points or 0.01% after trading in a range of 26207.90 and 26277.35. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.96%, Titan up by 2.34%, Hindalco up by 2.14%, Sun Pharma up by 1.66% and Wipro up by 1.49%. On the flip side, Power Grid down by 2.97%, Bharti Airtel down by 2.14%, Larsen & Toubro down by 1.45%, HDFC Bank down by 1.02% and Hero MotoCorp down by 0.97% were the top losers.

Asian markets were trading mixed; Jakarta Composite plunged 51.75 points or 0.67% to 7,692.77, Straits Times fell 11.15 points or 0.31% to 3,571.08, KOSPI dropped 16.70 points or 0.63% to 2,654.87 and Taiwan Weighted lost 8.97 points or 0.04% to 22,849.84.  However, Hang Seng advanced 470.21 points or 2.36% to 20,394.79, Nikkei 225 surged 670.58 points or 1.72% to 39,596.21 and Shanghai Composite strengthened 79.79 points or 2.66% to 3,080.74.