Domestic indices add gains as Fitch Ratings raises India's growth forecast

Domestic equity indices added gains in late morning deals on account of hectic buying in Mahindra & Mahindra, Infosys, Larsen & Toubro, Bharti Airtel and Kotak Mahindra Bank.  Meanwhile, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 1.50-2.50%.  Sentiments got boost as global ratings agency Fitch Ratings raised India's FY25 GDP growth forecast to 7 percent from 6.5 percent earlier as it expects the economy to continue its strong expansion. Fitch expects 50 bps rate cut by the Reserve Bank of India from July to December and foresees India's CPI inflation gradually declining to 4 percent by the end of 2024.

On the global front, Asian markets were trading mostly in green despite negative cues from the US markets overnight. Back home, in the stock specific development, Som Distilleries and Breweries soared after the company said its Board will consider stock-split next month. 

The BSE Sensex is currently trading at 72962.82, up by 200.93 points or 0.28% after trading in a range of 72497.19 and 72994.49. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.53%, while Small cap index up by 2.50%.

The top gaining sectoral indices on the BSE were Telecom up by 2.91%, Utilities up by 2.65%, Power up by 2.35%, Oil & Gas up by 1.97% and Industrials up by 1.94%, while Realty down by 0.15% was the only losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.84%, Infosys up by 1.83%, Larsen & Toubro up by 1.54%, Bharti Airtel up by 1.40% and Kotak Mahindra Bank up by 1.37%. On the flip side, JSW Steel down by 1.73%, Tata Steel down by 1.46%, HDFC Bank down by 0.75%, Tata Motors down by 0.75% and Sun Pharma down by 0.68% were the top losers.

Meanwhile, the heavy industries ministry has introduced a ‘Electric Mobility Promotion Scheme 2024 (EMPS 2024) to further accelerate the adoption of electric vehicle (EV) in the country. This is a fund limited scheme with a total outlay of Rs 500 crore for the period of 4 months, with effect from April 1, 2024 till July 31, 2024, for faster adoption of electric two-wheeler (e-2W) and three-wheeler (e-3W) to provide further impetus to the green mobility and development of electric vehicle (EV) manufacturing eco-system in the country. 

Under the scheme, a support of up to Rs 10,000 per 2-wheeler will be provided. The aim is to provide support for about 3.3 lakh 2-wheelers. A support of up to Rs 25,000 will be given for purchase of small three-wheelers (e-rickshaw and e-carts). More than 41,000 such vehicles will be provided the incentive under the scheme.

The financial support will be up to Rs 50,000 on purchase of a large three-wheeler. Subsidies under the second phase of the FAME scheme will be eligible for e-vehicles sold till March 31, 2024, or till the time funds are available.

The CNX Nifty is currently trading at 22081.25, up by 83.55 points or 0.38% after trading in a range of 21917.50 and 22098.50. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 5.10%, Adani Ports up by 3.56%, Hindalco up by 2.62%, Hero MotoCorp up by 2.24% and Infosys up by 1.90%. On the flip side, JSW Steel down by 1.85%, Tata Steel down by 1.60%, Tata Motors down by 0.80%, HDFC Bank down by 0.78% and Sun Pharma down by 0.69% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 111.41 points or 0.29% to 38,807.38, Taiwan Weighted added 9.41 points or 0.05% to 19,937.92, Straits Times rose 23.23 points or 0.73% to 3,183.95, KOSPI increased 18.53 points or 0.69% to 2,712.10 and Jakarta Composite gained 5.46 points or 0.07% to 7,426.67. However, Hang Seng declined 152.17 points or 0.89% to 16,929.94 and Shanghai Composite weakened 5.24 points or 0.17% to 3,038.59.