Markets maintain gains following strong cues from global markets

Domestic equity indices maintained their gains and were trading higher with gains of over half a per cent in early noon session deals on account of buying by funds and retails investors. Meanwhile, broader indices on the BSE outperformed their large peers and were trading with gains in range of 0.70-0.95%. Positive cues from global markets supported domestic sentiments. Some support came in with report that the Centre is likely to infuse capital in certain regional rural banks (RRBs) during 2023-24, depending on their performance and adoption of digitization. On the sectoral front, traders were seen pilling up position in Metal, Telecom, Industrials, Realty and Auto, while selling was witnessed only in Oil & Gas and Power. On the global front, Asian markets were trading higher, following positive cues from US markets overnight, as soft U.S. data released overnight reinforced views that the Federal Reserve is nearing the end of its rate tightening cycle. Back home, in the stock specific development, Zomato gained after 100 million shares of company changed hands on the exchange via block deals.

The BSE Sensex is currently trading at 65418.74, up by 342.92 points or 0.53% after trading in a range of 65288.25 and 65458.70. There were 28 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.74%, while Small cap index was up by 0.91%.

The top gaining sectoral indices on the BSE were Metal up by 1.19%, Telecom up by 1.17%, Industrials up by 0.85%, Realty up by 0.85% and Auto up by 0.82%, while Oil & Gas down by 0.09% and Power down by 0.02% were the only losing indices on BSE.

The top gainers on the Sensex were JIO Financial up by 4.99%, Tata Steel up by 2.38%, Axis Bank up by 1.43%, Mahindra & Mahindra up by 1.26% and Ultratech Cement up by 1.20%. On the flip side, Power Grid down by 1.00%, SBI down by 0.19% and Indusind Bank down by 0.08% were the few losers.

Meanwhile, Union Heavy Industries Minister Mahendra Nath Pandey has said that the government has decided to extend the Rs 25,938-crore production-linked incentive (PLI) scheme for the automotive sector by one year. Post extension, the five-year scheme, originally in place from 2022-23 to 2026-27, will be active until 2027-28. At present, incentives are applicable under the scheme for determined sales of Advanced Automotive Technology (AAT) products (vehicles and components) manufactured in India from April 1, 2022 onwards for a period of five consecutive years.

Pandey stated that the ministry has also accepted other suggestions made by auto industry stakeholders pertaining to the scheme including quarterly disbursement of subsidies and increasing the number of agencies testing domestic value addition from two at present to four. He hoped that the schemes will gather pace due to these measures. He also said that the government is committed to fostering a conducive business environment and accelerating growth in the Indian Automotive sector.

The minister further said that the PLI-AUTO scheme incentivizes only those eligible AAT products for which a minimum of 50 per cent Domestic Value Addition (DVA) is achieved and has been certified by Testing Agencies (TAs) of MHI. This criterion shall reduce imports, facilitate deep localization for AAT products and enable creation of domestic as well as global supply chains. As many as 95 companies have been admitted under the scheme that looks to promote local manufacturing of new technology products such as electric vehicles (EV) through subsidies. 

The CNX Nifty is currently trading at 19446.45, up by 103.80 points or 0.54% after trading in a range of 19407.85 and 19452.80. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 4.99%, Tata Steel up by 2.34%, Cipla up by 1.63%, Axis Bank up by 1.44% and Hindalco up by 1.30%. On the flip side, Power Grid down by 1.04%, BPCL down by 1.02%, Dr. Reddy's Lab down by 0.31%, SBI down by 0.13% and Britannia down by 0.01% were the top losers.

All Asian markets were trading higher; Hang Seng advanced 67.83 points or 0.37% to 18,551.86, Taiwan Weighted added 96.17 points or 0.58% to 16,719.82, Straits Times rose 4.06 points or 0.13% to 3,227.15, Shanghai Composite strengthened 0.48 points or 0.02% to 3,136.37, Jakarta Composite gained 21.44 points or 0.31% to 6,979.28, KOSPI increased 11.65 points or 0.45% to 2,563.81 and Nikkei 225 surged 106.49 points or 0.33% to 32,333.46.