Firm trade continues over Dalal Street during early afternoon deals

A firm trade continued over the Dalal Street during early afternoon deals, with both Sensex and Nifty trading above their neural lines, aided by heavy buying at Telecom and Realty counters, despite negative cues from other Asian markets. Sentiments were positive, as Shashank Priya, Member, Central Board of Indirect Taxes and Customs (CBIC) said that the spirit of entrepreneurship should be spread all over the country and there is a need for a necessary support system in which the Central government is fully committed. 

On the global front, Asian markets were trading mostly in red, after Hong Kong's consumer price inflation accelerated for the first time in four months in February, though at a slower-than-expected rate. The consumer price index, or CPI, climbed 2.1 percent year-over-year in February, faster than the 1.7 percent rise in January. Food inflation quickened to 2.2 percent in February from 1.0 percent in the previous month. Similarly, transport charges rose at a faster pace of 2.3 percent versus a 1.8 percent increase a month ago.

Back home, oil and gas industry stocks were in watch, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that Indian oil & gas (O&G) companies’ net zero and sustainability targets are aggressive as against those of international O&G players, given the lower proportion of capex presently allocated to the transition and it being limited to addressing process emissions, Consequently, progress against interim milestones and availability of funding (equity and debt) will be key in assessing its success.

The BSE Sensex is currently trading at 72796.48, up by 155.29 points or 0.21% after trading in a range of 72172.09 and 72879.02. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.24%, while Small cap index was up by 1.07%.

The top gaining sectoral indices on the BSE were Telecom up by 1.55%, Realty up by 1.31%, Auto up by 1.27%, Consumer discretionary up by 0.96% and Healthcare up by 0.88%, while IT down by 1.70% and TECK down by 1.29% were the only losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.52%, Maruti Suzuki up by 1.86%, Tata Motors up by 1.67%, Tata Steel up by 1.47% and Titan up by 1.45%. On the flip side, Wipro down by 2.54%, Infosys down by 2.36%, HCL Tech. down by 2.21%, TCS down by 1.39% and Tech Mahindra down by 1.11% were the top losers.

Meanwhile, Reserve Bank of India (RBI) has issued an omnibus framework for recognising Self-Regulatory Organisations (SROs) for its regulated entities, under which SROs would be required to establish minimum benchmarks for their members. The RBI said SROs enhance the effectiveness of regulations by drawing upon the technical expertise of practitioners and also aid in framing/ fine-tuning regulatory policies by providing inputs on technical and practical aspects. With the growth of regulated entities (REs) in terms of number as well as scale of operations, increase in adoption of innovative technologies and enhanced customer outreach, the RBI had felt the need to develop better industry standards for self-regulation.

The RBI's framework said SROs will be expected to operate with credibility, objectivity and responsibility under the oversight of the regulator, with the objective to improve regulatory compliance. In general, SROs are expected to adhere to a set of overarching objectives for betterment of the sector they represent, foster advancement and address critical industry concerns within the broader financial system. The primary responsibility of the SRO towards its members would be to promote best business practices. The SRO shall establish minimum benchmarks and conventions for professional market conduct amongst its members. The term 'members' used in the framework refers to the REs which accept the membership of the SRO.

The central bank also said SRO is expected to be an ally of the Reserve Bank in ensuring better compliance with the regulatory guidelines, protection of stakeholder interests, foster innovation and detection of early warning signals. The SROs would be a not-for-profit company registered under Section 8 of the Companies Act, 2013. The membership of SRO shall be voluntary. Existing SROs already recognised by the Reserve Bank would continue to be governed by the terms and conditions under which they were recognised, unless this framework is specifically extended to such SROs.

The CNX Nifty is currently trading at 22082.95, up by 71.00 points or 0.32% after trading in a range of 21883.30 and 22102.95. There were 37 stocks advancing against 13 stocks declining on the index.