Markets maintain gaining momentum in morning deals

Indian equity benchmarks maintained their gaining momentum in the morning session, amid firm global market trends. The market mood remained buoyant with RBI Monetary Policy Committee (MPC) member Jayanth R Varma’s statement that ‘No doubt inflation will come down. Because we have done monetary policy tightening. That tightening will have its impact. The monetary policy takes, you know, five to six quarters to have its impact and cool prices’. Traders also took a note of the Reserve Bank of India (RBI) in its monthly bulletin said India is poised to consolidate and accelerate the economic recovery over the rest of the year and the fight against inflation will be 'dogged and prolonged'. The bulletin said that the momentum of real GDP growth is expected to shed the drag embedded in the NSO’s estimates for the first quarter of 2022-23 and move into positive territory in the remaining quarters.

On the global front, Asian markets are trading mostly in green as the dramatic U-turn in British fiscal policy brightened investor sentiment, while the U.S. dollar took a breather at its lowest levels in more than a week as a revival in risk-taking lowered its appeal. Back home, power sector stocks remained in watch as the union minister for power, new and renewable energy said India will have more than 65 per cent of its power generation from renewable energy sources by 2030. He also said initiatives by the Centre including the Production Linked Scheme (PLI) scheme will ensure India to have a 90 Gw solar module capacity.

The BSE Sensex is currently trading at 59110.43, up by 699.45 points or 1.20% after trading in a range of 58744.13 and 59132.71. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.66%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.81%, Auto up by 1.65%, Industrials up by 1.60%, Power up by 1.59% and Utilities up by 1.52%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.74%, Ultratech Cement up by 2.46%, Larsen & Toubro up by 2.34%, SBI up by 2.33% and Bharti Airtel up by 2.30%. On the flip side, HDFC down by 0.07% and Sun Pharma down by 0.03% were the top losers.

Meanwhile, Power and New & Renewable Energy Minister RK Singh has said that India will have more than 65 per cent of its power generation capacity from non-fossil fuels by 2030. He stated India will have 90 GW of solar equipment manufacturing capacity by 2030, up from 20 GW at present. He also stated that about 15-20 GW of solar equipment manufacturing capacity is under construction and India will have 40 GW of such facilities under Production-Linked Incentive Scheme-II (PLI-II).

Further, he also urged the industry player to shift to the manufacturing of high-efficiency solar equipment. He stated that the country has already 170 GW of renewable energy (including large hydro), while another 80 GW is under construction. India has planned to hit 500 GW of renewable energy by 2030.

Besides, talking about the recent deliberations with industry players on green hydrogen, he also said the industry has evinced interest for 25 million tonnes of green hydrogen capacity. He noted the green hydrogen manufacturing capacity could be 35-40 million tonnes. He stressed the need to generate green hydrogen instead of decarbonised Hydrogen.

The CNX Nifty is currently trading at 17517.75, up by 205.95 points or 1.19% after trading in a range of 17434.05 and 17523.60. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.91%, Adani Ports &SEZ up by 2.91%, Ultratech Cement up by 2.45%, SBI up by 2.41% and Larsen & Toubro up by 2.40%. On the flip side, BPCL down by 0.44%, Divi's Lab down by 0.28%, Apollo Hospital down by 0.22%, HDFC down by 0.09% and Sun Pharma down by 0.06% were the top losers.

Asian markets are trading mostly in green; Hang Seng increased 171.59 points or 1.03% to 16,784.49, Jakarta Composite soared 3.44 points or 0.05% to 6,834.56, Shanghai Composite gained 4.80 points or 0.16% to 3,089.74, KOSPI rose 21.41 points or 0.96% to 2,241.12, Taiwan Weighted strengthened 131.92 points or 1.02% to 13,097.97 and Nikkei 225 surged 397.95 points or 1.49% to 27,173.74.

On the flip side, Straits Times trembled 1.87 points or 0.06% to 3,013.88.