Markets recover most of previous session’s losses with gap up opening

With a gap-up opening, Indian equity markets have recovered most of their previous session’s losses and are trading up by over 0.80% each in early deals, on the back of fresh buying by funds and retail investors. Both the Sensex and Nifty recaptured their psychological 58400 and 17450 levels respectively. Meanwhile, the broader markets too participated in the rally. Traders were getting encouragement as Commerce and Industry Minister Piyush Goyal has said that India is looking at getting duty-free access for different products identified under One District One Product (ODOP) initiative, to promote their exports . The Minister said that these products, which include gold jewellery, toys, handicrafts and handlooms, hold huge opportunities.

On the global front, Asian markets are trading mostly in green in early deals on Tuesday, recouping some of the losses in the previous session, despite the broadly negative cues from US markets overnight. The US markets ended lower on Monday, adding to a sharp selloff last week as investors continued to grapple with the fears about looming economic pain stemming from the Federal Reserve’s aggressive interest rate hikes.

Back home, all the sectoral indices on the BSE were trading in green led by Utilities, Power, Oil & Gas, Realty and Auto. In stock specific development, Ashok Leyland gained after the automaker announced 6 new models for their LCV range.

The BSE Sensex is currently trading at 58455.21, up by 482.59 points or 0.83% after trading in a range of 58245.49 and 58488.43. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.13%, while Small cap index up by 1.17%.

The top gaining sectoral indices on the BSE were Utilities up by 2.20%, Power up by 2.17%, Oil & Gas up by 1.68%, Realty up by 1.62% and Auto up by 1.49%, while there were no losing sectoral indices on the BSE. 

The top gainers on the Sensex were Bajaj Finserv up by 4.52%, Bajaj Finance up by 2.98%, Indusind Bank up by 2.90%, NTPC up by 2.48% and SBI up by 1.87%. On the flip side, Bharti Airtel down by 0.76% and Dr. Reddy's Lab down by 0.23% were the only losers.

Meanwhile, in order to promote exports, Commerce and Industry Minister Piyush Goyal has said that India is looking at getting duty-free access for different products identified under One District One Product (ODOP) initiative. The Minister said that these products, which include gold jewellery, toys, handicrafts and handlooms, hold huge opportunities.

He mentioned ‘We are doing Free Trade Agreements (FTAs) where we are looking at duty-free access for all these products. So we can create international acceptance of these products.’ In a free trade pact, two or more countries significantly reduce or eliminate customs duties on the maximum number of goods traded between them to boost bilateral commerce. Further, he suggested a five-point approach for ODOP success and that includes - developing one-stop gifting destinations with high quality suppliers; involving students of institutions like National Institute of Design; and extensive training sessions for artisans.

Further, he stated ‘Let us look at creating art and crafts villages at the G20 destinations across India. This can become the seed which will help artisans for years and help tourism and will give visibility to ODOP.’ He also added that programmes like Startup India, Make In India and Open Network for Digital Commerce would further help boost the initiative.

The CNX Nifty is currently trading at 17463.60, up by 150.70 points or 0.87% after trading in a range of 17401.50 and 17472.95. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 4.73%, Bajaj Finance up by 3.13%, Indusind Bank up by 3.02%, Shree Cement up by 2.57% and ONGC up by 2.35%. On the flip side, Bharti Airtel down by 0.97% and Dr. Reddy's Lab down by 0.25% were the only losers.

Asian markets are trading mostly in green, Nikkei 225 surged 310.12 points or 1.11% to 28,189.08, Jakarta Composite soared 76.52 points or 1.07% to 7,208.57, Taiwan Weighted strengthened 38.04 points or 0.25% to 14,964.23, KOSPI rose 19.95 points or 0.82% to 2,446.84 and Straits Times was up by 15.81 points or 0.49% to 3,238.07. On the flip side, Shanghai Composite declined 18.45 points or 0.57% to 3,222.28 and Hang Seng was down by 186.42 points or 0.93% to 19,836.80.