Domestic equity indices trade in green on firm global cues

Indian equity markets have opened in green territory and are trading higher by around half a percent in early deals on Tuesday with frontline gauges surging above their crucial 60,700 (Sensex) and 17,850 (Nifty) levels. Positive cues from global markets supported domestic sentiments. Sentiments were further supported by Indian rupee appreciating 6 paise to 82.64 against the dollar in early trade on Tuesday at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Traders ignored report that India's retail inflation breached the RBI's comfort zone and rose to a three-month high of 6.52 per cent in January 2023, mainly on account of a spike in food prices. The inflation rate based on the Consumer Price Index (CPI) stood at 5.72 per cent in December and 6.01 per cent in January 2022.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from US markets overnight, as traders picked up stocks at reduced levels after last week's weakness. The US markets ended higher on Monday amid investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes. Back home, traders were seen pilling up position in IT, TECK, FMCG, Telecom and Banking, while selling was witnessed in Realty, Utilities, Power, Oil & Gas and PSU.

The BSE Sensex is currently trading at 60738.96, up by 307.12 points or 0.51% after trading in a range of 60550.25 and 60749.01. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.52%, while Small cap index down by 0.44%.

The top gaining sectoral indices on the BSE were IT up by 1.19%, TECK up by 1.05%, FMCG up by 0.24%, Telecom up by 0.20% and Bankex up by 0.10%, while Realty down by 1.65%, Utilities down by 1.53%, Power down by 1.22%, Oil & Gas down by 0.74% and PSU down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.57%, Mahindra & Mahindra up by 1.31%, TCS up by 1.09%, Tech Mahindra up by 0.98% and Reliance Industries up by 0.93%. On the flip side, Tata Motors down by 1.20%, Indusind Bank down by 1.18%, Titan down by 0.62%, Power Grid down by 0.46% and SBI down by 0.43% were the top losers.

Meanwhile, Minister of State for Corporate Affairs Rao Inderjit Singh has said illegal subsidies by trade partners and other countries hurt Indian trade and business, and that corrective actions are taken in the form of invoking dispute settlement mechanisms.

He stated ‘At a multilateral forum, the disciplines regulating the provision of subsidies and the use of countervailing measures to offset injury caused by subsidized imports are addressed in the Agreement on Subsidies and Countervailing Measures.’

According to him, the subsidies whether they are prohibited (illegal) or actionable are determined by three major steps within the Subsidies and Countervailing Measures agreement. Based on them, corrective actions are taken in the form of invoking dispute settlement mechanism.

The CNX Nifty is currently trading at 17850.15, up by 79.25 points or 0.45% after trading in a range of 17801.80 and 17850.90. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.98%, Infosys up by 1.56%, Mahindra & Mahindra up by 1.25%, Tech Mahindra up by 1.15% and TCS up by 1.05%. On the flip side, Adani Enterprises down by 1.71%, Indusind Bank down by 1.24%, Tata Motors down by 1.21%, Titan down by 0.72% and Apollo Hospital down by 0.70% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 119.64 points or 0.76% to 15,663.92, Hang Seng advanced 39.18 points or 0.18% to 21,203.60,  KOSPI increased 21.92 points or 0.89% to 2,474.62, Jakarta Composite gained 24.27 points or 0.35% to 6,924.41 and Nikkei 225 surged 151.3 points or 0.55% to 27,578.62. However, Straits Times fell 7.61 points or 0.23% to 3,317.09 and Shanghai Composite weakened 0.95 points or 0.03% to 3,283.21.