Bourses continue to trade flat in late afternoon session

Local equity markets continued to trade flat in late afternoon session amid volatility. The broader indices, the BSE Mid cap index and Small cap index traded in green. Weakness in select Metal and banking shares dragged key gauges lower, while buying in IT stocks helped markets to trade near neutral lines. Sector wise, sugar stocks remained in limelight as India is in negotiations with Brazil to resolve a sugar dispute at the World Trade Organisation (WTO) and the commerce ministry is coordinating with concerned departments for the same. India is also following a similar process for other complainants of the sugar dispute at the Geneva-based WTO. On the global front, Asian markets were trading mixed with interest-rate worries and geopolitical tensions in focus. European markets were trading lower with defence stocks leading declines after an aborted mutiny in Russia over the weekend, while financial stocks dragged on mounting concerns of global interest rates staying higher for longer.

The BSE Sensex is currently trading at 62906.15, down by 73.22 points or 0.12% after trading in a range of 62855.82 and 63136.09. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.60%, while Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.26%, Auto up by 0.75%, FMCG up by 0.59%, Consumer Durables up by 0.57% and Telecom was up by 0.28%, while Metal down by 0.26%, Energy down by 0.21%, Capital Goods down by 0.10%, Bankex down by 0.06% and PSU was down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.56%, Maruti Suzuki up by 1.34%, Ultratech Cement up by 1.19%, Hindustan Unilever up by 0.85% and Titan Company up by 0.85%. On the flip side, NTPC down by 0.86%, TCS down by 0.85%, Reliance Industries down by 0.83%, Larsen & Toubro down by 0.70% and Power Grid down by 0.68% were the top losers.

Meanwhile, in line with the emphasis laid in India's Foreign Trade Policy 2023 on facilitating the export of high tech items, the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, has simplified and liberalized the policy for export of Drones/ Unmanned Aerial Vehicles (UAVs) meant for civilian end uses from India. 

All kind/type of drones/UAVs were earlier controlled/restricted for export under the category 5B of the SCOMET (Special Chemicals Organisms Material Equipments and Technology) list under Appendix 3 of Schedule 2 of the ITCHS classification of Import and Export Items. This list deals with the category of items that are subject to specific regulations due to their potential dual-use nature-meaning they can have both civilian and military applications. SCOMET license was required for export of such items and the Industry was facing challenges to export drones with limited capability which are only meant for civilian use. 

Based on the wider consultations held with all the stakeholders including seeking public/Industry comments on the policy, the SCOMET policy of drones/UAVs meant for civilian use has been amended to simplify and liberalize the policy for export of drones/UAVs. The export of Drones/UAVs not covered under the specified categories in SCOMET list and capable of range equal to or less than 25 km and delivering a payload of not more than 25 kgs (excluding the software and technology of these items) and meant for only civilian end-use, will now be subject to General Authorization for Export of Drones (GAED), a onetime general license valid for 3 years. 

This policy change will not require the Drone Manufacturers/Exporters with GAED Authorization to apply for SCOMET license for every similar export shipment meant for civilian purpose, within the validity period of 3 years subject to post reporting and other documentary requirements, reducing the compliance by the Industry to apply for SCOMET license every time they have to export any kind of civilian drone/UAVs. 

The CNX Nifty is currently trading at 18668.75, up by 3.25 points or 0.02% after trading in a range of 18646.70 and 18722.05. There were 32 stocks advancing against 18 stocks declining on the index. 

The top gainers on Nifty were Adani Enterprises up by 3.05%, Cipla up by 2.92%, Tata Consumer up by 2.27%, Hero MotoCorp up by 1.93% and Divi's Lab up by 1.83%. On the flip side, NTPC down by 0.94%, TCS down by 0.85%, Reliance Industries down by 0.84%, Larsen & Toubro down by 0.79% and Power Grid down by 0.74% were the top losers.

Asian markets were trading mixed, Taiwan Weighted lost 143.16 points or 0.84% to 17,059.24, Hang Seng declined 95.84 points or 0.51% to 18,794.13, Nikkei 225 slipped 82.73 points or 0.25% to 32,698.81 and Shanghai Composite was down by 47.28 points or 1.5% to 3,150.62. On the flip side, Straits Times rose 0.37 points or 0.01% to 3,191.97, KOSPI increased 12.1 points or 0.47% to 2,582.20 and Jakarta Composite was up by 26.4 points or 0.4% to 6,666.13.

European markets were trading lower, UK’s FTSE 100 decreased 29 points or 0.39% to 7,432.87, France’s CAC fell 27.82 points or 0.39% to 7,135.60 and Germany’s DAX was down by 32.14 points or 0.2% to 15,797.80.