Domestic indices erase all losses in late morning deals

Domestic equity indices erased all of their losses and were trading slightly higher in late morning deals on account of buying in Wipro, Larsen & Toubro and Reliance Industries stocks. Positive cues from global markets supported domestic sentiments. Some support came in as foreign institutional investors (FII) bought shares worth Rs 1,652.95 crore on April 27, according to provisional data from National Stock Exchange. However, gains remained limited as traders now await the Fed's preferred inflation gauge later in the day for hints on when the Federal Reserve might consider pausing interest rate rises. There was some buzz in automobile industry related stocks as the Union government has released standard operating procedure of the production linked incentive (PLI) scheme for automobile sector, whereby applicants can submit applications for testing and certification of advanced automotive technology products, which will help them qualify for incentives.

On the global front, Asian markets were mostly trading in green following the broadly positive cues from US overnight. Back home, on the BSE sectoral front, traders were seen pilling up position in Telecom, Industrials, Capital Goods, TECK and IT, while selling was witnessed in Consumer Durables, Bankex and FMCG. In the stock specific development, Glenmark Life Sciences (GLS) rallied on the company's strong earnings for the March quarter (Q4FY23).

The BSE Sensex is currently trading at 60685.36, up by 35.98 points or 0.06% after trading in a range of 60507.83 and 60772.61. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.70%, while Small cap index up by 0.74%.

The top gaining sectoral indices on the BSE were Telecom up by 2.86%, Industrials up by 1.14%, Capital Goods up by 1.13%, TECK up by 0.92% and IT up by 0.90%, while Consumer Durables down by 0.76%, Bankex down by 0.58% and FMCG down by 0.06% were few losing indices on BSE.

The top gainers on the Sensex were Wipro up by 2.86%, Larsen & Toubro up by 1.81%, Reliance Industries up by 1.18%, Nestle up by 1.08% and Sun Pharma up by 0.97%. On the flip side, Axis Bank down by 2.74%, Hindustan Unilever down by 1.87%, Bajaj Finserv down by 1.66%, Titan down by 0.96% and Asian Paints down by 0.73% were the top losers.

Meanwhile, the Union government has released standard operating procedure of the production linked incentive (PLI) scheme for automobile sector, whereby applicants can submit applications for testing and certification of advanced automotive technology products, which will help them qualify for incentives.

Minister of Heavy Industries Mahendra Nath Pandey said his ministry is trying to align itself with the Prime Minister's vision of Aatmanirbhar Bharat, and these SOPs (standard operating procedures) will not only help achieve that but will also help in increasing the manufacturing foothold. He noted that with this, the ministry aims to boost the domestic manufacturing sector and reduce dependence on imports, thereby creating more job opportunities for Indians. He also added that it would contribute to the overall economic growth of the nation. The scheme is expected to attract significant investments and help India become a global hub for automobile manufacturing.

The Ministry of Heavy Industries notified the Production Linked Incentive Scheme for Automobile and Auto Component Industry in India (PLI-Auto Scheme) on September 23, 2021, with a budgetary outlay of Rs 25,938 crore. The PLI-Auto Scheme proposes financial incentives to boost domestic manufacturing of advanced automotive technology (AAT) products and attract investments in the automotive manufacturing value chain.

The CNX Nifty is currently trading at 17943.95, up by 28.90 points or 0.16% after trading in a range of 17885.30 and 17957.95. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 3.88%, Wipro up by 2.83%, Adani Ports up by 2.55%, Larsen & Toubro up by 1.91% and HDFC Life Insurance up by 1.54%. On the flip side, Axis Bank down by 2.88%, Hindustan Unilever down by 1.86%, Bajaj Finserv down by 1.76%, Titan down by 1.26% and ONGC down by 0.72% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 135.01 points or 0.87% to 15,546.50, Hang Seng advanced 146.18 points or 0.74% to 19,986.46, Shanghai Composite strengthened 23.95 points or 0.73% to 3,309.83, KOSPI increased 1.23 points or 0.05% to 2,497.04 and Nikkei 225 surged 400.39 points or 1.41% to 28,858.07. However, Jakarta Composite plunged 10.84 points or 0.16% to 6,934.64 and Straits Times fell 7.88 points or 0.24% to 3,274.15.