Sensex, Nifty turn positive in early noon deals

Indian equity benchmarks turned positive in early afternoon deals, with both Sensex and Nifty trading higher, aided by firm cues from other Asian markets along with buying at Utilities, IT and Power counters. Sentiments were optimistic, as Sebi Chairperson Madhabi Puri Buch said that Indian capital markets are commanding high valuations as foreign investors are bullish about the country's economic growth on the back of strong domestic macroeconomic data.

Adding more relief among traders, India’s services sector activity rose to one of strongest rates since mid-2010 in March, as buoyant demand for Indian services created a cascade of positivity for the sector. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index surged to 61.2 in March from 60.6 in February. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also jumped to 61.8 in March as against 60.6 in February. 

On the global front, Asian markets were trading in green, after the service sector in Japan continued to expand in March, and at a faster rate, with a service PMI score of 54.1. That's up from 52.9 and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Japanese service providers registered a sustained improvement in employment levels during March.

Back home, the telecom industry stocks were in watch, as the Department of Telecom (DoT) deferred the spectrum auction by 17 days to June 6, 2024 as per the amendments made in the notice inviting application for the bids on April 3, 2024. The department has also reduced bank guarantee and guarantee for earnest money deposit, in a move to ease liquidity for the bidders. The mock auctions will now be held on June 3 instead of May 13 and 14.

The BSE Sensex is currently trading at 73916.25, up by 39.43 points or 0.05% after trading in a range of 73485.12 and 74501.73. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell by 0.17%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were Utilities up by 0.59%, IT up by 0.46%, Power up by 0.44%, Bankex up by 0.40% and TECK up by 0.20%, while Oil & Gas down by 1.77%, Energy down by 1.32%, PSU down by 0.89%, Metal down by 0.64% and Auto down by 0.47% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 2.56%, NTPC up by 0.95%, TCS up by 0.87%, Axis Bank up by 0.79% and Asian Paints up by 0.43%. On the flip side, Power Grid down by 1.43%, JSW Steel down by 1.37%, SBI down by 1.22%, Indusind Bank down by 1.19% and Reliance Industries down by 1.12% were the top losers.

Meanwhile, the Department of Telecom (DoT) has deferred the spectrum auction by 17 days to June 6, 2024 as per the amendments made in the notice inviting application for the bids on April 3, 2024. The department has also reduced bank guarantee and guarantee for earnest money deposit, in a move to ease liquidity for the bidders. The mock auctions will now be held on June 3 instead of May 13 and 14.

The government will auction eight spectrum bands for mobile phone services at a base price of about Rs 96,317 crore. The DoT has also reduced the number of blocks for auction in the 900 Mhz band in the West Bengal circle to 44 from 48 blocks that were proposed earlier. The validity of bank guarantee for earnest money deposit (EMD) in the form of bank guarantee will be valid for less period till September 30, 2024 instead of December 31, 2024, as proposed earlier.

All the available spectrum in the 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz, and 26 GHz bands are part of the auction. The spectrum will be assigned for a period of 20 years and successful bidders will be allowed to make payments in 20 equal annual instalments. The DoT has provided an option to surrender the spectrum acquired through the upcoming auction after a minimum period of 10 years.

The CNX Nifty is currently trading at 22467.75, up by 33.10 points or 0.15% after trading in a range of 22303.80 and 22619.00. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 2.83%, NTPC up by 1.21%, Divi's Lab up by 1.07%, Axis Bank up by 0.94% and TCS up by 0.94%. On the flip side, ONGC down by 2.96%, Shriram Finance down by 2.21%, Grasim Industries down by 2.10%, Adani Ports & SEZ down by 1.67% and Hero MotoCorp down by 1.44% were the top losers.

Asian markets were trading in green; Jakarta Composite gained 72.28 points or 1.01% to 7,239.12, Straits Times rose 14.76 points or 0.46% to 3,237.42, KOSPI increased 35.03 points or 1.28% to 2,742.00 and Nikkei 225 surged 321.29 points or 0.81% to 39,773.14.