Benchmarks continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, amid positive cues from the global markets. Sentiments remained positive as the Reserve Bank of India (RBI) stated that net profits of manufacturing companies surged by 50.2 per cent during 2021-22, the input cost pressures notwithstanding. It said net profit also increased for the information technology (IT) companies, whereas the non-IT services sector continued to record losses at the aggregate level. Some support also came as Commerce and Industry Minister Piyush Goyal said India is one of the fastest-growing economies in the world and it is expected to reach $30 trillion in the coming 30 years. He said if India grows at 8 per cent every year on a compounded annual growth basis, the economy will double in about nine years. Meanwhile, Member of Parliament Jayant Sinha said the government has made a well mapped-out provision for establishing digital financial infrastructure or digital public goods in the country in the form of Aadhaar, provision of universal bank accounts and Unified Payments Interface (UPI).

On the global front, Asian markets are trading mostly in green on hopes that U.S. inflation is peaking and that the world's largest economy is still on a solid footing. Power industry’s stocks remained in watch as Power Minister RK Singh stated that the government would invite bids from states to sell electricity generated from 8,000 megawatt (MW) thermal capacities without power purchase agreements (PPAs). Sharing the government's plan to resolve the issue, he said that states have been asked to send their electricity requirement, and accordingly bids will be invited.

The BSE Sensex is currently trading at 53349.15, up by 621.17 points or 1.18% after trading in a range of 53259.12 and 53509.50. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index fell 0.92%, while Small cap index was up by 1.58%.

The top gaining sectoral indices on the BSE were Metal up by 2.98%, IT up by 2.53%, TECK up by 2.12%, Basic Materials up by 2.09% and Capital Goods up by 1.84%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were HCL Technologies up by 3.70%, Tech Mahindra up by 3.68%, Sun Pharma up by 2.58%, Infosys up by 2.46% and Tata Steel up by 2.39%. On the flip side, Kotak Mahindra Bank down by 0.03% was the lone loser.

Meanwhile, Power Minister RK Singh has said that the government would invite bids from states to sell electricity generated from 8,000 megawatt (MW) thermal capacities without power purchase agreements (PPAs). Sharing the government's plan to resolve the issue, he said that states have been asked to send their electricity requirement, and accordingly bids will be invited.

He stated ‘We will aggregate (their demand) and call on for bids and based on the bids, whoever puts in the lowest bids, PPAs will be signed. Once PPAs are signed, they (states) will get the power.’ Further, he said there are also some thermal capacities undergoing the National Company Law Tribunal (NCLT) proceedings, and the government has already taken several steps, including meeting with the bankers, to resolve the issue at the earliest so such plants can start operations.

He mentioned 'There are some projects in the NCLT. The country has 17,500 MW plants, which run only on imported coal. Out of that, 2,500 MW were under the NCLT. I had a meeting with bankers etc. We worked out on ways and means of starting this.'

The CNX Nifty is currently trading at 15881.35, up by 182.10 points or 1.16% after trading in a range of 15861.60 and 15927.45. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.62%, HCL Technologies up by 3.70%, Tech Mahindra up by 3.60%, JSW Steel up by 3.02% and Infosys up by 2.56%. On the flip side, Apollo Hospital down by 0.44% and Kotak Mahindra Bank down by 0.05% were the top losers.

Asian markets are trading mostly in green; Hang Seng increased 684.47 points or 3.15% to 22,403.53, Nikkei 225 surged 399.44 points or 1.51% to 26,891.41, Taiwan Weighted strengthened 307.82 points or 2.01% to 15,611.14, KOSPI rose 49.02 points or 2.07% to 2,415.62, Shanghai Composite gained 29.41 points or 0.88% to 3,379.16 and Straits Times advanced 18.60 points or 0.6% to 3,130.25, While Jakarta Composite lost 58.66 points or 0.83% to 6,984.28.