Benchmarks trade lower in morning deals

Indian equity benchmarks were trading lower in morning deals, due to selling in Oil & Gas, Power and Energy shares. Traders remained cautious with Icra’s report stating that amid continuing lower supplies, the borrowing cost for states fell to a 32-week low of 7.40 per cent Tuesday, down by 4 bps from the previous week's auctions. Throughout January, the interest rates were hovering at a two-year high of close to 7.9 per cent. Meanwhile, External Affairs Minister S Jaishankar has called for a quick conclusion to the review of India's trade agreement with South Korea, adding that the two countries must work together to find more meeting points and increase their engagement to realise their potential. On the global front, Asian markets are trading mostly in green as investors braced for Fed Chair Jerome Powell's congressional testimony and the ECB rate decision.

The BSE Sensex is currently trading at 73537.66, down by 139.47 points or 0.19% after trading in a range of 73448.09 and 73765.95. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.61%, while Small cap index was down by 2.11%.

The lone gaining sectoral index on the BSE was Bankex up by 0.93%, while Oil & Gas down by 2.35%, Power down by 2.32%, Energy down by 2.21%, Realty down by 2.18% and Utilities down by 2.03% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.27%, Axis Bank up by 1.90%, ICICI Bank up by 1.38%, Indusind Bank up by 0.74% and HDFC Bank up by 0.49%. On the flip side, NTPC down by 2.88%, Power Grid Corporation down by 2.17%, Wipro down by 1.98%, Tata Steel down by 1.88% and JSW Steel down by 1.63% were the top losers.

Meanwhile, in a significant move, the government has reviewed the extant Foreign Direct Investment (FDI) policy on the space sector. According to the government, the amendments, made under the Consolidated FDI Policy Circular of 2020, aim to liberalize and streamline FDI regulations to attract more investment and foster growth in the space industry. Under the revised policy, some changes have been introduced. Satellites: Manufacturing and Operation- The sectoral cap for FDI has been set at 100 per cent. For investments up to 74 per cent, automatic approval will be granted, while investments beyond 74 per cent will require government approval.

Satellite Data Products, Ground Segment and User Segment- The sectoral cap for FDI remains at 100 per cent, with automatic approval for investments up to 100 per cent. Launch Vehicles and Associated Systems or Subsystems- The sectoral cap for FDI has been set at 100 per cent, with automatic approval for investments up to 49 per cent. Investments beyond 49 per cent will require government approval. 

Creation of Spaceports for Launching and Receiving Spacecraft- This category has been introduced, allowing 100 per cent FDI with automatic approval for investments up to 100 per cent. Manufacturing of Components and Systems/Subsystems for Satellites, Ground Segment, and User Segment- The sectoral cap for FDI remains at 100 per cent, with automatic approval for investments up to 100 per cent.

The amended policy provides clear definitions for various activities within the space sector, including satellites manufacturing and operation, satellite data products, ground segment, user segment, launch vehicles, creation of spaceports, and manufacturing of components and systems/subsystems, read the press release. These amendments are expected to streamline FDI regulations and attract more investment into India's burgeoning space industry.

The liberalization of FDI policy is in line with the government's vision to promote ease of doing business and facilitate greater participation of foreign investors in key sectors of the economy. The revised policy will come into effect from the date of Foreign Exchange Management Act (FEMA) notification, signaling a new era of opportunities and growth in India's space sector, read the press release.

The CNX Nifty is currently trading at 22309.85, down by 46.45 points or 0.21% after trading in a range of 22250.20 and 22369.45. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.23%, Axis Bank up by 2.21%, Bajaj Auto up by 1.46%, ICICI Bank up by 1.38% and HDFC Bank up by 0.50%. On the flip side, ONGC down by 3.03%, Coal India down by 2.96%, NTPC down by 2.86%, Power Grid Corporation down by 2.22% and BPCL down by 2.15% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 129.09 points or 0.67% to 19,516.01, Hang Seng advanced 376.37 points or 2.28% to 16,539.01, Straits Times rose 35.06 points or 1.13% to 3,142.16, Jakarta Composite gained 26.88 points or 0.37% to 7,274.34 and Shanghai Composite strengthened 3.56 points or 0.12% to 3,051.35.

On the flip side, KOSPI dropped 8.47 points or 0.32% to 2,640.93 and Nikkei 225 slipped 14.22 points or 0.04% to 40,083.41.