Markets extend opening gains in early deals

Indian equity benchmarks made flat-to-positive start on Thursday amid weakness in global counterparts as investors react to a mixed bag of earnings results from U.S. companies. Tesla missed profit estimates in the first quarter of 2023 while IBM's earnings topped estimates. Expectations of more interest-rate hikes pushed up the U.S. dollar and yields, weighing on sentiment. Domestic markets soon gained momentum and added strength on the street. Local indices are trading higher with decent gains of around one third of a percent each as value buying in Capital Goods, Consumer Durables and Industrials counters lend support to the sentiments. Gains in the markets remained capped ahead of the weekly F&O expiry of derivative contracts later in the day. Foreign fund outflows also somewhat limit the up move in the domestic markets. National Stock Exchange's provisional data showed foreign institutional investors (FII) sold shares worth Rs 13.17 crore on April 19.

On the sectoral front, paint industry stocks were in focus as Crisil in a report said that continuing healthy demand from construction, real estate and automobile sectors will help the paint sector register a 10-12 per cent revenue growth this fiscal against an 18 per cent estimated rise in the just-concluded fiscal. IT stocks were in limelight ahead of HCL Tech's Q4FY23 numbers due later in the day. In stock specific movement, Adani Ports rose ahead of a board meet to consider partial buyback of debt securities.

The BSE Sensex is currently trading at 59792.54, up by 224.74 points or 0.38% after trading in a range of 59574.41 and 59836.79. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.85%, Consumer Durables up by 0.84%, Industrials up by 0.72%, Utilities up by 0.50%, Power up by 0.50%, while Realty down by 0.46%, Healthcare down by 0.32% were the only losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.65%, Larsen & Toubro up by 1.21%, Power Grid up by 0.93%, ICICI Bank up by 0.77% and Indusind Bank up by 0.74%. On the flip side, Nestle down by 0.17%, Reliance Industries down by 0.07% and Axis Bank down by 0.03% were the top losers.

Meanwhile, discussing international developments regarding crypto assets, India and the UK have emphasised the importance of robust global approaches to deal with risks attached to this. At the India-UK 2nd Financial Markets Dialogue participants from both countries provided updates on recent developments in their respective banking sectors, discussing banking trends and emerging vulnerabilities and risks in the sector.

The joint statement said ‘scope for augmenting knowledge on Central Banking Digital Currency (CBDC) through mutual learning was explored. Participants discussed international developments regarding crypto assets, and the importance of robust global approaches, and progress in delivering the G20 Roadmap’.

The recent collapse of crypto exchange FTX and the ensuing sell-off in crypto markets have placed a spotlight on the vulnerabilities in the crypto ecosystem. Crypto assets are self-referential instruments and do not strictly pass the test of being a financial asset because they have no intrinsic cash flows attached to them. US regulators have disqualified Bitcoin, Ether and various other crypto assets as securities.

Participants discussed matters relating to the insurance sector, including UK updates on Solvency II reforms and a consultation on the introduction of an Insurer Regulation Regime (IRR). Indian participants updated on developments in the regulatory approach towards insurance in India, in favour of enhancing ease of doing business and encouraging entry of new players for deeper insurance penetration.

The CNX Nifty is currently trading at 17672.50, up by 53.75 points or 0.31% after trading in a range of 17613.80 and 17684.45. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 1.87%, Titan Company up by 1.58%, Larsen & Toubro up by 1.18%, Power Grid up by 0.96% and Adani Enterprises up by 0.69%. On the flip side, Divi's Lab down by 2.79%, Eicher Motors down by 1.16%, Apollo Hospital down by 1.07%, SBI Life Insurance down by 0.51% and Dr. Reddy's Lab down by 0.43% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 23.28 points or 0.15% to 15,747.19, Shanghai Composite weakened 23.23 points or 0.69% to 3,346.90, Straits Times fell 7.91 points or 0.24% to 3,316.14 and KOSPI dropped 6.82 points or 0.26% to 2,568.26. on the other hand, Nikkei 225 surged 76.48 points or 0.27% to 28,683.24 and Hang Seng was up by 39.54 points or 0.19% to 20,407.30.