Markets wipe out opening losses to trade flat with positive bias

Indian equity benchmarks made negative start on Friday following overnight jump in crude oil prices. Oil prices jumped after two sessions of decline, boosted by a spike in fuel demand as Hurricane Milton slammed into Florida, with Middle East supply risks and signs that demand from the US and China could increase also providing support. Soon, markets wipe out losses and are trading flat with positive bias in early deals tracking gains in Asian counterparts. Some support came as the World Bank retained India's gross domestic product (GDP) growth forecast for FY25 at 7% propelled by higher agricultural production and robust employment growth from policy initiatives, spurring private consumption. Also, the World Bank in its South Asia Development Update said India's manufacturing output would increase by 9 per cent if more women joined the workforce. 

On the global front, Asian markets are trading mostly higher, despite the broadly negative cues from Wall Street overnight, as data showing the bigger-than-expected increase in US consumer prices further offset optimism the US Fed will continue to aggressively lower interest rates in the coming months. China is also falling as the markets await potential fiscal stimulus announcements on Saturday. Meanwhile, Hong Kong is closed for the Double Ninth Festival.

Back home, pharma stocks are in focus with a private report that the Indian pharmaceutical market (IPM) grew by 5.3 per cent in September this year, driven by major therapies showing positive value growth. Among them, urology, cardiac, and dermatology therapies saw nearly double-digit value growth of 11.8 per cent, 9.7 per cent, and 9.5 per cent, respectively, driving the overall IPM growth. In stock specific development, JSW Steel climbed as the company partners with BHP & Cabon Clean for clean steelmaking.

The BSE Sensex is currently trading at 81621.03, up by 9.62 points or 0.01% after trading in a range of 81398.38 and 81654.00. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.28%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Metal up by 1.43%, Healthcare up by 0.58%, Basic Materials up by 0.58%, IT up by 0.42% and Oil & Gas up by 0.40%, while Realty down by 0.45%, Utilities down by 0.31%, Power down by 0.20%, FMCG down by 0.17% and Auto down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.00%, JSW Steel up by 1.47%, HCL Technologies up by 1.22%, Indusind Bank up by 1.00% and Reliance Industries up by 0.87%. On the flip side, Asian Paints down by 0.81%, Bajaj Finance down by 0.73%, Bharti Airtel down by 0.69%, TCS down by 0.66% and ITC down by 0.63% were the top losers.

Meanwhile, citing the growth of agriculture output and policies as a major factor contributing to the employment growth in the economy, the World Bank in its South Asia’s Growth forecast report has raised India’s economic growth forecast from 6.6 per cent to 7 per cent for the financial year 2024-25.

As per the report, in India, better-than-expected manufacturing performance in the first quarter of 2024 was supported by declining input costs as global oil prices moderated. Growth normalized to 6.7 percent in the second quarter of 2024 and reflected a strong recovery in private consumption and resilient services exports. Robust growth is likely to have continued into the third quarter of 2024. In July, India’s composite PMI stood at 61.4, well above both its long-term trend and the global average-with strong performance in both manufacturing and services.

It said South Asia remains the fastest-growing emerging market and developing economy region in the world. In fact, growth is now on track to be higher than anticipated six months ago, helped by strong domestic demand in India and faster recoveries in most other South Asian countries. It further said global investors are seeking locations with low geopolitical risks and strong economic fundamentals, and the region, especially India, is well-placed to benefit.

The CNX Nifty is currently trading at 25006.60, up by 8.15 points or 0.03% after trading in a range of 24934.35 and 25017.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 1.91%, Hindalco up by 1.71%, JSW Steel up by 1.30%, HCL Technologies up by 1.12% and ONGC up by 1.02%. On the flip side, Cipla down by 1.61%, Bajaj Finance down by 0.86%, TCS down by 0.82%, ITC down by 0.70% and Mahindra & Mahindra down by 0.67% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted jumped 279.56 points or 1.23% to 22,938.64, Nikkei 225 surged 273.54 points or 0.69% to 39,654.43, Jakarta Composite gained 60.76 points or 0.81% to 7,540.84, KOSPI increased 8.68 points or 0.33% to 2,607.84 and Straits Times was up by 0.82 points or 0.02% to 3,586.11, while Shanghai Composite was down by 52.72 points or 1.62% to 3,249.21.