Sensex, Nifty near day’s high points

Indian equity benchmarks were trading near their intraday high points in late morning session, tracking positive cues from other Asian markets along with heavy buying in the domestic shares. Sentiments remained positive, after the commerce and industry minister Piyush Goyal said that the proposed free trade agreement with the European Union, when implemented, will provide greater market access for several domestic sectors such as textiles, leather and sports goods in the EU market.

Besides, the pension Fund Regulatory and Development Authority (PFRDA) data showed that the number of subscribers in various schemes of the National Pension System (NPS) rose to 53.17 million in May 2022, registering a 24.07 per cent YoY growth. Till May 2021, the NPS subscribers numbers stood at 42.85 million.

On the global front, Asian markets were trading in green, after Taiwan's export orders increased more than expected in May. The data from the Ministry of Economic Affairs showed that export orders rose 6.0 percent year-on-year in May. Orders for mineral products grew 124.1 percent annually in May and those of electronic products gained 17.4 percent.

The BSE Sensex is currently trading at 52465.44, up by 867.60 points or 1.68% after trading in a range of 51808.76 and 52486.05. There were 30 stocks advancing against no stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.74%, while Small cap index was up by 2.32%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 3.55%, IT up by 3.14%, TECK up by 2.82%, Oil & Gas up by 2.52% and Realty up by 2.47%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Titan Co up by 5.89%, HCL Tech up by 3.92%, TCS up by 3.13%, SBI up by 3.07% and Dr. Reddy's Lab up by 2.80%.

Meanwhile, Department of Telecom (DoT) has launched an incentive scheme for design-led manufacturers and extended the duration of the Rs 12,195 crore production-linked incentive (PLI) scheme by a year. The incentive for design-led manufacturing is part of the PLI scheme which was notified on February 24, 2021. The DoT has amended the clause and made the scheme effective from April 1, 2022. With the objective to build a strong ecosystem for 5G, the Union Budget 2022-23 has proposed to launch a scheme for design-led manufacturing as part of the existing PLI scheme.

After consultations with stakeholders, the guidelines for the PLI Scheme for telecom and networking products have been amended to introduce the Design-led Manufacturing with additional incentive rates. Telecom equipment makers who use 50 per cent of Made in India components in their product will be eligible for the design-linked incentive. The new version of telecom PLI heeded to the demand of domestic manufacturers by removing the 15 per cent cap on investment to be made for research and development.

The PLI has provision to provide incentive in the range of 4 to 7 per cent. The design-led manufacturers will get 1 per cent additional incentive over existing slabs under the PLI scheme. The application window will open from June 21 till July 20. The incentives will be given from the Rs 4,000 crore which is left from the total outlay.

The CNX Nifty is currently trading at 15603.85, up by 253.70 points or 1.65% after trading in a range of 15419.85 and 15615.30. There were 50 stocks advancing against no stocks declining on the index.

The top gainers on Nifty were Titan Co up by 5.88%, HCL Tech. up by 3.71%, Tata Motors up by 3.17%, JSW Steel up by 3.17% and TCS up by 3.10%

All Asian markets were trading in green; Nikkei 225 surged 586.14 points or 2.27% to 26,357.36, Jakarta Composite soared 40.35 points or 0.58% to 7,016.73, Straits Times advanced 21.37 points or 0.69% to 3,117.77, KOSPI rose 30.53 points or 1.28% to 2,421.56, Shanghai Composite gained 5.81 points or 0.18% to 3,321.24, Taiwan Weighted strengthened 333.42 points or 2.17% to 15,701.00 and Hang Seng increased 302.12 points or 1.43% to 21,466.03.