Markets continue to trade in fine fettle in late morning deals

Domestic equity indices continued to trade in fine fettle in late morning deals, on account of solid buying by funds and retail investors. Meanwhile, broader indices on the BSE were also trading higher. Positive cues from global markets supported domestic sentiments. Sentiments got boost as the U.S. 10-year Treasury yield pulled back after jumping to a three-month closing high above 4.0 percent. Markets also reflected optimism about the outlook for the global economy following upbeat data from China and Europe.  Sentiments were further supported by Indian rupee appreciating 26 paise to 81.70 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. All the sectoral indices on the BSE were trading in green led by Utilities, Power, Oil & Gas, Energy and IT.

On the global front, Asian markets were trading mostly higher following the broadly positive cues from global markets on Friday, amid easing concerns about the outlook for interest rates.  Back home, in the stock specific development, Mahanagar Gas (MGL) rallied after the company signed agreement to acquire 100 per cent stake in city gas distributor (CGD) Unison Enviro (UEPL) for Rs 531 crore.

The BSE Sensex is currently trading at 60403.57, up by 594.60 points or 0.99% after trading in a range of 60005.65 and 60498.48. 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 1.00%, while Small cap index up by 1.11%.

The top gaining sectoral indices on the BSE were Utilities up by 2.81%, Power up by 2.46%, Oil & Gas up by 1.75%, Energy up by 1.63% and IT up by 1.62%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Power Grid up by 2.50%, Bajaj Finserv up by 2.36%, Infosys up by 2.26%, NTPC up by 2.20% and Tata Motors up by 1.92%. On the flip side, Kotak Mahindra Bank down by 0.32% and Ultratech Cement down by 0.10% were only losers.

Meanwhile, Chief Economic Advisor (CEA) V Anantha Nageswaran has said that implementation of certain regulations by regulators could perpetuate existing market dominance as he cited the data and privacy norms in the technology space. He emphasised that while competition drives innovation, there is also a distinction between competition and free markets. He pointed out that competition agencies must be mindful of the unintended consequences of their actions.

CEA said in the technology space, regulators implement data and privacy norms that guarantee users complete access to their data. In such situations, users can end up chasing only the large players since they place a great degree of trust in them. This will ultimately lead to loss of competition across similar platforms, concentrating power in the hands of few. He also said that excess competition itself would be undesirable, including in sectors like banking, insurance and securities.

Nageswaran further said competition factors that make other sectors more attractive can actually be a cause for systemic instability in these sectors, adding that regulators and competition agencies should keep an eye on systemic welfare or lack of it. He stated that banking and financial services sectors are subject to norms that promote competition among existing firms to keep interest rates fair and prevent market dominance by dominant institutions.

The CNX Nifty is currently trading at 17771.90, up by 177.55 points or 1.01% after trading in a range of 17671.95 and 17799.95. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 11.44%, Adani Ports up by 3.15%, Power Grid up by 2.50%, Bajaj Finserv up by 2.39% and Infosys up by 2.35%. On the flip side, Britannia down by 2.93%, Kotak Mahindra Bank down by 0.29%, JSW Steel down by 0.19%, Ultratech Cement down by 0.17% and Indusind Bank down by 0.10% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 155.09 points or 0.98% to 15,763.51, Hang Seng advanced 103.83 points or 0.5% to 20,671.37, KOSPI increased 25.38 points or 1.04% to 2,457.45, Jakarta Composite gained 1.67 points or 0.02% to 6,815.31 and Nikkei 225 surged 310.31 points or 1.11% to 28,237.78. However, Shanghai Composite weakened 5.08 points or 0.15% to 3,323.31 and Straits Times fell 0.45 points or 0.01% to 3,231.57.