Domestic indices trade in green in late morning deals

Domestic equity markets were trading in green during late morning deals on account of buying in Tata Motors, Power Grid and Sun Pharma companies’ stocks. Sensex was trading with marginal gains and Nifty was trading higher with gains of over quarter a percent.  Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.50-0.90%. Sentiments got boost as India's services activity rose at the sharpest rate of expansion in January 2024. The HSBC India Services PMI came in at 61.8 in January, up from 59 in December. It is the highest since July 2023 when the PMI was 62.3. A reading above 50 shows that the sector is expanding. Traders were also getting some encouragement as senior government officials and industry players have discussed ways to enhance collaborations and create a clear action plan for successful implementation of PLI schemes. 

On the global front, Asian markets were trading mixed after U.S. Federal Reserve Chair Jerome Powell dashed investor hopes for interest rate cuts in the near term. Back home, on the BSE sectoral front, traders were seen pilling up position in Oil & Gas, Energy, PSU, Utilities and Auto, while selling was witnessed in Telecom, Bankex, TECK, FMCG and Consumer Durables. In the stock specific development, Jio Financial Services rallied after private report said crisis-ridden One 97 Communications is in talks with Jio Financial Services and HDFC Bank to sell its wallet business.

The BSE Sensex is currently trading at 72161.08, up by 75.45 points or 0.10% after trading in a range of 71972.77 and 72385.93. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.90%, while Small cap index up by 0.54%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.12%, Energy up by 2.55%, PSU up by 2.19%, Utilities up by 2.14% and Auto up by 1.76%, while Telecom down by 0.75%, Bankex down by 0.31%, TECK down by 0.18%, FMCG down by 0.18% and Consumer Durables down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 7.13%, Power Grid up by 3.18%, Sun Pharma up by 2.65%, Tata Steel up by 2.02% and NTPC up by 1.56%. On the flip side, Bharti Airtel down by 2.66%, Bajaj Finserv down by 0.96%, Kotak Mahindra Bank down by 0.95%, Maruti Suzuki down by 0.68% and Hindustan Unilever down by 0.67% were the top losers.

Meanwhile, the Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey has said that the central government and Central Public Sector Enterprises (CPSEs) are estimated to monetise assets worth Rs 1.50 trillion in the current fiscal (FY24), a tad lower than the targeted of Rs 1.75 trillion. He noted that under the National Monetisation Pipeline, the aggregate monetisation potential of the central government's brownfield infrastructure assets has been estimated at Rs 6 trillion over a four-year period, from FY 2022 to FY 2025.

DIPAM Secretary further said monetisation is going on through infrastructure investment trust (InvITs), Toll Operate Transfer (TOT) in mining, road and power sector and is beginning to happen in the petroleum sector. He said 'the asset monetisation proceeds do not visibly appear in the Budget... to the extent NHAI does it and the receipts are with the government that is only reflected in the Budget. In most cases the proceeds accrue to the enterprise and not to the government.’

Asset Monetization, based on the philosophy of Creation through Monetisation, is aimed at tapping private sector investment for new infrastructure creation. It also creates employment opportunities, thereby enabling high economic growth and integrating the rural and semi-urban areas for overall public welfare.

The CNX Nifty is currently trading at 21918.70, up by 64.90 points or 0.30% after trading in a range of 21833.40 and 21964.30. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 7.03%, BPCL up by 4.65%, Coal India up by 4.35%, ONGC up by 3.40% and Power Grid up by 3.03%. On the flip side, UPL down by 8.57%, Bharti Airtel down by 2.59%, Bajaj Finserv down by 0.90%, HDFC Life Insurance down by 0.87% and Kotak Mahindra Bank down by 0.87% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 86.55 points or 0.56% to 15,620.11, Nikkei 225 surged 232.28 points or 0.64% to 36,390.30 and Taiwan Weighted added 36.14 points or 0.2% to 18,096.07. However, Straits Times fell 53.31 points or 1.68% to 3,126.46, KOSPI dropped 18.50 points or 0.71% to 2,596.81, Shanghai Composite weakened 9.24 points or 0.34% to 2,720.91 and Jakarta Composite plunged 26.79 points or 0.37% to 7,212.00.