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Indian Equity Benchmarks Continue to Trade Higher Amid Strong Support

Strategic Insights

— 2 min read

Indian equity benchmarks continued to trade higher in morning deals, led by gains in Metal, Energy, and Auto stocks, as traders took support with reports of multi-year lows in non-performing advances (NPAs) of banks, primarily driven by substantial write-offs by state-owned banks. The Reserve Bank of India also reported a significant increase in India's foreign exchange reserves, while the GST Council is likely to introduce a new rule regarding excess input tax credit. On the global front, Asian markets traded mostly in the green due to softer-than-expected US jobs data, easing concerns about the interest rate outlook.

Key Takeaways:

  • The BSE Sensex is trading at 65,596.57, up by 316.12 points or 0.48% after trading in a range of 65,342.55 and 65,633.49.
  • The top gaining sectoral indices on the BSE were Metal up by 1.41%, Energy up by 1.11%, Auto up by 0.53%, Oil & Gas up by 0.28%, and Bankex up by 0.26%.
  • The Reserve Bank of India reported that India's foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ended on June 30.
  • The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period.
  • The GST Council is likely to decide on a new rule in GST law under which businesses would be required to explain the reasons for excess input tax credit (ITC) claimed or deposit the amount with the exchequer.
  • Union Petroleum Minister Hardeep Singh Puri announced the Centre's support for the development of Green Hydrogen in the country, with major financial institutions committed to supporting the development.
  • The Eurpean Investment Bank (EIB) has pledged 1 billion euros to support the development of Green Hydrogen in India, while the Asian Development Bank (ADB) has offered 20-25 billion dollars over five years to aid India's green growth.
  • The World Bank has approved $1.5 billion in Financing to Support India's Low-Carbon transition journey.

Statistics:

  • The BSE Sensex is trading at 65,596.57, up by 316.12 points or 0.48%.
  • The top gainers on the Sensex were Reliance Industries up by 4.33%, Tata Steel up by 1.88%, Tata Motors up by 1.71%, Ultratech Cement up by 0.99%, and Bharti Airtel up by 0.53%.
  • The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period.
  • India's foreign exchange reserves rose by $1.853 billion to $595.051 billion in the week ended on June 30.
  • The European Investment Bank (EIB) has pledged 1 billion euros to support the development of Green Hydrogen in India.

Sources:

  • BSE Sensex data
  • Reserve Bank of India data
  • GST Council data
  • Union Petroleum Minister Hardeep Singh Puri's announcement
  • European Investment Bank (EIB) data
  • Asian Development Bank (ADB) data
  • World Bank data
  • Accord Fintech Pvt. Ltd. disclaimer
  • Contify.com

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