Benchmarks continue to trade higher in morning deals

Indian equity benchmarks trimmed some gains but continued to trade higher in morning deals, led by gain in IT, TECK and Auto stocks amid strength across global markets. Sentiments remained positive as the government relaxed norms for ministries and department to utilise unspent amounts in the subsequent quarter in the same financial year in a bid to push public expenditure. Some support also came as Economic research think-tank Centre for Monitoring Indian Economy (CMIE) has estimated that labour participation rate (LPR) was higher in rural India during the period January to April 2022. LPR, defined as the number of persons of the labour force employed as a percentage of working age population, is 40.9 in rural India as compared to 37.4 in urban India during the period January to April 2022. However, gains remain capped as some concern came with SBI’s statement that upcoming release of official data for economic performance is likely to register a 2.7 per cent growth for the January-March period, and the FY22 growth is expected to be 8.5 per cent. Meanwhile, Commerce and Industry Minister Piyush Goyal said the way things are progressing between the two negotiating teams, a free trade agreement (FTA) between India and the UK could be ready by Diwali without the need for an interim early harvest agreement.

On the global front, Asian markets are trading in green tracking U.S. markets as investors took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year. Back home, stocks related to dairy sector remained in focus as report by Crisil Ratings stated that India's organised dairy sector is likely to achieve 11-12 per cent revenue growth this financial year, the second straight year of double-digit growth, mainly driven by healthy demand for value-added products (VAP).

The BSE Sensex is currently trading at 54595.50, up by 342.97 points or 0.63% after trading in a range of 54510.14 and 54791.78. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.17%, while Small cap index up by 1.10%.

The top gaining sectoral indices on the BSE were IT up by 1.62%, TECK up by 1.31%, Auto up by 1.07%, Industrials up by 1.06% and Bankex up by 1.04%, while Oil & Gas down by 0.95%, Energy down by 0.84%, PSU down by 0.25% and Utilities down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.72%, Bajaj Finserv up by 2.41%, Tech Mahindra up by 2.34%, HCL Technologies up by 2.18% and Indusind Bank up by 2.03%. On the flip side, NTPC down by 1.56%, Asian Paints down by 1.32%, Power Grid Corporation down by 1.23%, Reliance Industries down by 1.08% and Nestle down by 0.79% were the top losers.

Meanwhile, the Union Ministry of Commerce & Industry has said that the import policy of major paper products has been amended from 'free' to 'free subject to compulsory registration under Paper Import Monitoring System'. Directorate General of Foreign Trade (DGFT) issued a notification to this effect on May 25. The Ministry stated this order shall be applicable on a range of paper products, such as newsprint, handmade paper, wallpaper base, duplicating paper, coated paper, uncoated paper, Litho and offset paper, tissue paper, parchment paper, carbon paper, wallpaper, envelops, toilet paper, cartons, account books, labels, bobbins, etc. All imports arriving on or after October 1, 2022 shall be governed by this policy.

Further, it stated paper products like currency paper, bank bond and cheque paper, security printing paper, etc have been excluded from this policy change. The domestic paper industry has been raising issues of dumping of paper products in the domestic market by way of under-invoicing, entry of prohibited goods by mis-declaration, re-routing goods through other countries in lieu of trade agreements. A large proportion of paper products are imported under Others category Tariff Lines. The move will also go a long way in promoting Make-In-India and Atmanirbhar Bharat in this category.

A user-friendly interface has been created for the implementation of the Paper Import Monitoring System (PIMS). Any importer will be able to obtain an automatic registration number online by paying a registration fee of Rs 500. The importer can apply for registration not earlier than the 75th day and not later than the 5th day before the expected date of arrival of the import consignment. The automatic registration Number thus granted shall remain valid for a period of 75 days. Multiple bill of entries shall be allowed in the same registration number within the validity period of registration for the permitted quantity. Online facility of registration will be available from July 15, 2022.

The CNX Nifty is currently trading at 16263.90, up by 93.75 points or 0.58% after trading in a range of 16249.40 and 16329.35. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 3.61%, HDFC Life Insurance up by 2.91%, Bajaj Finserv up by 2.37%, Tech Mahindra up by 2.35% and HCL Technologies up by 2.09%. On the flip side, ONGC down by 4.54%, NTPC down by 1.62%, Power Grid Corporation down by 1.30%, Britannia Industries down by 1.20% and Asian Paints down by 1.17% were the top losers.

All the Asian markets are trading in green; Taiwan Weighted strengthened 281.39 points or 1.76% to 16,250.22, Hang Seng increased 556.60 points or 2.77% to 20,672.80, KOSPI rose 24.32 points or 0.93% to 2,636.77, Shanghai Composite gained 16.33 points or 0.52% to 3,139.44, Nikkei 225 surged 171.15 points or 0.64% to 26,775.99, Straits Times advanced 14.70 points or 0.46% to 3,223.88 and Jakarta Composite soared 112.60 points or 1.64% to 6,996.10.