Domestic indices continue to trade in green in early noon session

Domestic equity indices continued to trade in green in early noon session as market participants indulged in enlarging their positions. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.20-0.35%. Hectic buying in HDFC Bank, Mahindra & Mahindra and Reliance Industries helped the markets to maintain their gains. Positive cues from global markets also supported domestic sentiments. Sentiments remained upbeat after falling US treasury yields.  The sentiments were further supported by Indian rupee appreciating 12 paise to 83.22 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were mostly trading in green following positive cues from the US markets overnight. Back home, most of the sectoral indices on BSE were trading in green, with only exception of IT counter. Stocks from Oil & Gas, Energy, PSU, Metal and Power counters were the prominent gainers.

The BSE Sensex is currently trading at 72302.75, up by 264.32 points or 0.37% after trading in a range of 72137.45 and 72406.75. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.20%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.92%, Energy up by 1.65%, PSU up by 1.53%, Metal up by 1.09% and Power up by 0.83% while IT down by 0.13% was the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.91%, Power Grid up by 1.73%, Nestle up by 1.24%, Mahindra & Mahindra up by 1.09% and HDFC Bank up by 1.01%. On the flip side, Ultratech Cement down by 1.08%, Maruti Suzuki down by 0.59%, Infosys down by 0.52%, Asian Paints down by 0.32% and Larsen & Toubro down by 0.31% were the top losers.

Meanwhile, rolling out a policy to provide financial support for coal gasification projects, augmenting production and promoting underground mining activities are among the government's priorities for the coal sector in 2024, which is key to meet the country's rising electricity demand. Besides, efforts will be made to bring more captive and commercial coal mines into operation, improve the quality of the dry fuel and transportation infrastructure for environmental sustainability. Digitisation of mine records is also on the cards. 

Coal Secretary Amrit Lal Meena has said that the government has already notified two policies with respect to coal gasification and plans to provide financial support as well as tax incentives for such projects. The ministry of coal has set a target to gasify 100 Million Tonnes (MT) of coal by FY 2030 in line with its energy transition plans. He said ‘now, we are coming out with a policy for certain financial support and tax incentives (for coal gasification projects). This is under consideration... and we will ensure that coal gasification will see positive acceleration’. He also emphasised that the government is working to create an enabling environment to promote coal gasification. Coal gasification is expected to reduce imports by 2030 as well as reduce carbon emissions and foster sustainable practices.

In order to address environmental concerns in the coal gasification process, he said the government has mandated grant of green clearance wherein the project proponent has to conduct environment impact assessment studies and prepare an environment management plan. He also said the plan will be duly examined by an expert committee before taking up any activities related to establishment of a coal gasification plant. The Centre has also formulated a policy wherein, a provision has been made for 50 per cent rebate in revenue share for all future commercial coal block auctions for the fossil fuel used for gasification. This will be subject to the condition that the quantity used for gasification is at least 10 per cent of the total production.

The CNX Nifty is currently trading at 21732.40, up by 77.65 points or 0.36% after trading in a range of 21678.00 and 21759.05. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.37%, Hero MotoCorp up by 2.03%, NTPC up by 1.93%, BPCL up by 1.83% and Power Grid Corp up by 1.52%. On the flip side, Ultratech Cement down by 0.97%, Eicher Motors down by 0.74%, Maruti Suzuki down by 0.61%, Infosys down by 0.51% and Grasim Industries down by 0.43% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 433.48 points or 2.54% to 17,058.32, Taiwan Weighted added 18.87 points or 0.11% to 17,910.37, Straits Times rose 59.05 points or 1.83% to 3,229.81, KOSPI increased 33.15 points or 1.25% to 2,646.65, Shanghai Composite strengthened 42.06 points or 1.42% to 2,956.67 and Jakarta Composite gained 40.92 points or 0.56% to 7,286.84. However, Nikkei 225 slipped 141.62 points or 0.42% to 33,539.62.