Markets trim some gains in late afternoon session

Local equity markets trimmed some of their gains in late afternoon session but continued their moves in green terrain amid a day of weekly F&O expiry. Traders took support after private report stated that India and Canada are set to hold talks during March 10-13 to further strengthen the bilateral ties and discuss economic partnership, including a free trade agreement between both nations. Sector wise, Mines and Minerals sector remained in focused, as in order to specify the rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum, the Union Cabinet has approved the proposal of the Ministry of Mines for amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957. On the global front, All Asian markets were trading higher after oil prices recovered some of a decline the day before that had eased inflation fears. European markets were trading lower as investors monitor the war in Ukraine and fluctuations in commodity prices.

The BSE Sensex is currently trading at 55163.96, up by 516.63 points or 0.95% after trading in a range of 54982.82 and 56242.47. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.77%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Realty up by 2.18%, FMCG up by 1.77%, Bankex up by 1.65%, Auto up by 1.62% and Consumer Discretionary was up by 1.46%, while TECK down by 0.12% and IT was down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 4.01%, Indusind Bank up by 3.20%, Axis Bank up by 3.11%, Tata Steel up by 2.93% and Bajaj Finserv up by 2.85%. On the flip side, Tech Mahindra down by 1.60%, Dr. Reddy's Lab down by 0.48%, Power Grid down by 0.24% and TCS down by 0.11% were the top losers.

Meanwhile, in order to specify the rate of royalty in respect of Glauconite, Potash, Emerald, Platinum Group of Metals (PGM), Andalusite, Sillimanite and Molybdenum, the Union Cabinet has approved the proposal of the Ministry of Mines for amendment of Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957.

The approval would ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of Metals, Andalusite and Molybdenum thereby reducing import of these minerals, generating empowerment opportunity in the mining sector as well as manufacturing sector which will help in ensuring inclusive growth of a large section of the society.  Rate of royalty for Andalusite, Sillimanite and Kyanite which are mineral polymorphs are kept at the same level.

The approval will lead to import substitution in respect of many important minerals for the economy of the country thereby saving valuable forex reserves.  It will reduce country’s foreign dependency through the local production of minerals. The approval would ensure auction of mineral blocks in respect of Glauconite, Potash, Emerald, Platinum Group of metals, Andalusite and Molybdenum for the first time in the country.

The CNX Nifty is currently trading at 16512.15, up by 166.80 points or 1.02% after trading in a range of 16447.90 and 16757.30. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 4.35%, Indian Oil up by 3.51%, Grasim Industries up by 3.46%, Indusind Bank up by 3.08% and Tata Steel up by 2.94%. On the flip side, Coal India down by 3.75%, Tech Mahindra down by 1.77%, Hindalco down by 0.74%, Dr. Reddy's Lab down by 0.52% and UPL down by 0.24% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 972.87 points or 3.94% to 25,690.40, Taiwan Weighted strengthened 417.84 points or 2.46% to 17,433.20, Hang Seng increased 262.55 points or 1.27% to 20,890.26, Jakarta Composite soared 59.57 points or 0.87% to 6,924.01, KOSPI rose 57.92 points or 2.21% to 2,680.32, Shanghai Composite gained 39.70 points or 1.22% to 3,296.09 and Straits Times was up by 39.36 points or 1.23% to 3,234.74.

European markets were trading lower, UK’s FTSE 100 decreased 71.40 points or 0.99% to 7,119.32, France’s CAC decreased 119.35 points or 1.87% to 6,268.48 and Germany’s DAX was down by 274.27 points or 1.98% to 13,573.66.