Domestic indices remain in green in volatile trade

Domestic equity indices came off day’s highs but remained in green in late morning deals on account of buying in HDFC bank, TCS,  Infosys and Reliance Industries companies’ stocks. However, the broader markets were facing the heat of selling; the BSE mid-cap index declined by 1.04 per cent and the small-cap index was down 2.06 per cent. Traders were cautious ahead of crucial U.S. inflation data due out later in the day that could influence the timing of the Federal Reserve's pivot to monetary easing. Meanwhile, India's Index of Industrial Production (IIP) and Consumer Price Index (CPI) data to be out later in the day is in watch for more directional cues. On the BSE sectoral front, traders were seen pilling up position only in TECK and IT, while selling was witnessed in Realty, PSU, Industrials, Power and Utilities. 

On the global front, Asian markets were trading mostly in green amid mixed cues from the global markets overnight. In the stock specific development, ITC fell on private report that British American Tobacco Plc (BAT) is planning to sell a part of its stake in its Indian partner this week.

The BSE Sensex is currently trading at 73722.66, up by 220.02 points or 0.30% after trading in a range of 73342.12 and 74004.16. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.04%, while Small cap index down by 2.06%.

The only gaining sectoral indices on the BSE were TECK up by 0.83% and IT up by 0.73%, while Realty down by 3.00%, PSU down by 1.56%, Industrials down by 1.53%, Power down by 1.50% and Utilities down by 1.47% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.99%, TCS up by 1.87%, Infosys up by 1.30%, Reliance Industries up by 1.00% and Maruti Suzuki up by 0.94%. On the flip side, ITC down by 1.91%, SBI down by 1.18%, JSW Steel down by 1.16%, Nestle down by 1.16% and NTPC down by 1.08% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that many developed and developing countries including Bangladesh, Sri Lanka, and nations of the Gulf region are keen to start trade in rupee with India as it would help cut transaction costs for businesses. He expressed confidence that the development is going to be a ‘very game-changing’ dimension to India's international trade. He added that gradually countries are realising that undertaking trade in domestic currencies has several advantages. 

The minister said that it is now picking up traction and a lot of countries have come forward for this arrangement and are talking to India for that as they would also like to initiate direct transactions between their local currency and the rupee. He said gradually the conscience is setting in that rather than converting all the transactions into a third currency, both ways, adds significantly to transaction costs. He noted that undertaking trade in other currencies leads to foreign exchange and transaction losses as there is a cost for conversion. The delays in the movement of money also pushed transactors' costs. 

He further said ‘we started with the UAE. The UAE was one of the first countries to accept this. It's now picking up traction. We get a lot of countries who come and talk to us that they would like to also initiate direct transactions between the local currency and the rupee.’ He added that the engagement is also beneficial as the Indian Rupee is mostly stable against most of the international currencies and according to experts, this is one of the reasons that different nations today want to have trade relations built on rupee trade.

The CNX Nifty is currently trading at 22353.35, up by 20.70 points or 0.09% after trading in a range of 22256.00 and 22452.55. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 1.93%, TCS up by 1.77%, Eicher Motors up by 1.36%, LTIMindtree up by 1.34% and Infosys up by 1.19%. On the flip side, Cipla down by 2.13%, ITC down by 1.89%, Adani Enterprises down by 1.53%, Bajaj Auto down by 1.46% and SBI down by 1.31% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 182.63 points or 0.92% to 19,908.71, Straits Times rose 8.17 points or 0.26% to 3,146.59, KOSPI increased 21.75 points or 0.81% to 2,681.59 and Hang Seng advanced 401.12 points or 2.36% to 16,988.69. However, Shanghai Composite weakened 11.25 points or 0.37% to 3,057.21 and Nikkei 225 slipped 38.84 points or 0.1% to 38,781.65.