Benchmarks remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, driven by Realty, Utilities and Power stocks amid strength in other global markets. Traders took some support as Finance Minister Nirmala Sitharaman said that the inflation has come down within the tolerance band as a result of the steps taken by the government to check price rise, especially in perishable commodities. She said the government is seized of the difficulties, which arise due to shortage of perishable goods, which are not grown in India. Some support also came with Moody's Investors Service stating that growth in Asia Pacific will decelerate in 2024 as a downshift in China's growth trajectory will spill over in the region through trade in goods and services, but India will be able to mitigate the challenge aided by robust domestic demand.  On the global front, Asian markets are trading mostly in green as investors waited to see if Beijing's increasingly frantic efforts to prop up its sagging share markets would actually work, while bonds enjoyed a reprieve from recent selling. 

The BSE Sensex is currently trading at 72315.58, up by 129.49 points or 0.18% after trading in a range of 72277.01 and 72559.21. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.48%, while Small cap index was up by 0.68%.

The top gaining sectoral indices on the BSE were Realty up by 2.39%, Utilities up by 1.71%, Power up by 1.55%, Metal up by 1.14% and PSU up by 0.75%, while IT down by 0.76%, TECK down by 0.59% and Auto down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.66%, Axis Bank up by 1.64%, Tata Steel up by 1.45%, Sun Pharma up by 1.40% and Bajaj Finance up by 1.34%. On the flip side, Infosys down by 1.48%, ICICI Bank down by 0.86%, Power Grid Corp down by 0.86%, Wipro down by 0.72% and HCL Technologies down by 0.44% were the top losers.

Meanwhile, Aiming to promote and incentivize its growth, the Department for Promotion of Industry and Internal Trade (DPIIT) has taken strides to bolster the Indian Tyre Industry. It stated with a surge in domestic consumption and exports, fueled by increasing mobility and industrialization, the Indian tyre sector has witnessed notable expansion.

This growth trajectory has been further propelled by robust research and development activities and the introduction of advanced and eco-friendly tyre variants. To safeguard against the influx of substandard products, prevent unfair trade practices, and enhance the quality of domestically manufactured tyres, DPIIT enacted the Quality Control Order (QCO), 2009, regarding Pneumatic Tyres and Tubes for Automotive Vehicles on May 13, 2011.

This move was pivotal in ensuring the protection of human, animal, or plant health, as well as environmental safety. Sanjiv, joint secretary of DPIIT, stated ‘We are working to improve the industry. We continue to solicit feedback and speak with stakeholders throughout this process. We have reviewed the feedback and determined the next course of action based on it.’

In a bid to regulate tyre imports more effectively, DPIIT, in conjunction with the Directorate General of Foreign Trade (DGFT), proposed amendments to the import policy of tyres. Notably, DGFT’s notification no. 12/2015-2020, dated June 12, 2020, shifted nine ITC HS codes of new pneumatic tyres from the ‘free’ to the ‘Restricted’ category. Consequently, importers are now required to obtain an Import Licence for tyres covered under this notification.

Under the revised guidelines, applications for tyre imports will be considered from OEMs of vehicle manufacturers, tyre companies with manufacturing operations in India, and authorized vehicle and tyre testing laboratories/agencies recognized by the Government of India. These imports are primarily for research and development, testing, benchmarking, evaluation, and product development purposes.

The CNX Nifty is currently trading at 21974.70, up by 45.30 points or 0.21% after trading in a range of 21963.80 and 22053.30. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 3.27%, SBI up by 2.71%, Coal India up by 1.82%, Axis Bank up by 1.63% and Grasim Industries up by 1.52%. On the flip side, Infosys down by 1.51%, ICICI Bank down by 0.91%, Power Grid Corporation down by 0.91%, Eicher Motors down by 0.69% and Wipro down by 0.63% were the top losers.

Asian markets are trading mostly in green; Straits Times rose 28.19 points or 0.9% to 3,153.87, KOSPI increased 23.97 points or 0.93% to 2,600.17, Jakarta Composite gained 6.29 points or 0.09% to 7,253.70 and Shanghai Composite strengthened 25.4 points or 0.9% to 2,814.89.

On the flip side, Hang Seng declined 11.95 points or 0.07% to 16,124.92 and Nikkei 225 slipped 72.75 points or 0.2% to 36,087.91.