Domestic equity indices continue to trade in fine fettle

Domestic equity indices continued to trade in fine fettle in late morning deals as market participants indulged in enlarging positions. Meanwhile, broader indices on the BSE were also trading in green. Benchmarks held on to the green after RBI Governor Shaktikanta Das announced a hike of 25 basis points in the repo rate, as widely expected by street. Shares of cement manufacturers were trading higher after Finance Minister Nirmala Sitharaman on Tuesday said that the government will consider a review of the 28 per cent Goods and Services Tax (GST) levied on cement. UltraTech Cement, Ambuja Cements, India Cements and HeidelbergCement India were trading higher. On the global front, Asian markets were trading mixed as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining - a sign the central bank may soon pause its rate hikes. Back home, on the BSE sectoral front, traders were seen piling up position in IT, TECK, Healthcare and Metal, while selling was witnessed in Realty, Capital Goods, PSU, Industrials and Auto.

The BSE Sensex is currently trading at 60650.20, up by 364.16 points or 0.60% after trading in a range of 60324.92 and 60792.10. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.47%, while Small cap index up by 0.32%.

The top gaining sectoral indices on the BSE were IT up by 1.92%, TECK up by 1.54%, Healthcare up by 0.41%, Metal up by 0.40% and Power up by 0.22%, while Realty down by 0.39%, Capital Goods down by 0.25%, PSU down by 0.18%, Industrials down by 0.13% and Auto down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.50%, Infosys up by 2.41%, Reliance Industries up by 1.75%, TCS up by 1.70% and Tech Mahindra up by 1.70%. On the flip side, Power Grid Corp down by 1.84%, Bharti Airtel down by 1.06%, Larsen & Toubro down by 0.98%, Tata Steel down by 0.58% and Axis Bank down by 0.53% were the top losers.

Meanwhile, domestic rating agency ICRA in its latest report has said that CNG, Electric Vehicles (EVs) and hybrid vehicles may grab up to 30 per cent share in total auto sales in next five years even as petrol cars are likely to dominate passenger vehicle volumes in medium-term. It noted that demand for EVs has increased exponentially in the last two years with the government's push, increasing awareness, and new launches.

However, the report said the share of EVs in the overall passenger vehicle (PV) industry remains low, at 1 per cent currently. On the other hand, it said CNG vehicles have also gained prominence in recent years, aided by favourable running costs, improving penetration of CNG dispensing stations across the country, and enhanced product offerings by OEMs and added that lower emissions in CNG vehicles would also help OEMs (original equipment manufacturers) comply with the impending Corporate Average Fuel Economy (CAFE) norms.

Noting that a cohesive approach from all stakeholders is imperative to facilitate the E20 (petrol blended with 20 per cent ethanol) transition within the targeted timelines, the ratings agency said auto OEMs are, however, unlikely to face major challenges to comply with proposed ethanol blending norms. Ethanol blending would reduce vehicular emissions, strengthen energy security, help reduce oil imports and conserve forex reserves. It believes that the readiness of the auto industry and the OEMs to meet E20 blending norms is unlikely to be a major challenge. No major design changes are required from a vehicle standpoint except material recalibration, and the impact on the vehicle cost is expected to be less than 1 per cent in the case of passenger vehicles and about 2-3 per cent in the case of two-wheelers.

The CNX Nifty is currently trading at 17839.55, up by 118.05 points or 0.67% after trading in a range of 17744.15 and 17878.95. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 11.92%, Adani Ports & SEZ up by 7.11%, HDFC Life Insurance up by 3.64%, SBI Life up by 2.77% and Ultratech Cement up by 2.50%. On the flip side, Coal India down by 2.16%, Hero MotoCorp down by 2.03%, Power Grid Corp down by 1.98%, Bharti Airtel down by 1.39% and Eicher Motors down by 1.07% were the top losers.

Asian markets were trading mixed; Hang Seng declined 29.58 points or 0.14% to 21,269.12, Shanghai Composite weakened 9.9 points or 0.31% to 3,238.19, Jakarta Composite plunged 4.93 points or 0.07% to 6,930.37 and Nikkei 225 slipped 103.21 points or 0.37% to 27,582.26. However, Taiwan Weighted added 8.09 points or 0.05% to 15,400.91, KOSPI increased 29.28 points or 1.18% to 2,480.99 and Straits Times rose 6.36 points or 0.19% to 3,387.20.