Domestic indices maintain gains; Nifty trade above 22,700 mark

Domestic equity indices maintained their gains in late morning deals as market participants indulged in enlarging their positions. Hectic buying in Axis Bank, Larsen & Toubro, SBI, ICICI Bank and Infosys helped the markets to trade above their psychological 74,600 and 22,700 levels respectively. Meanwhile, broader indices underperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.20-0.30%. Sentiments got boost as HSBC's flash India Composite purchasing managers' Index, compiled by S&P Global, rose slightly to 61.7 this month from April's final reading of 61.5, marking the 34th month above the 50-level separating growth from contraction. On the BSE sectoral front, traders were seen pilling up position in Capital Goods, Bankex, Telecom, IT and TECK, while selling was witnessed in Metal, Healthcare, Basic Materials, Utilities and Power. 

On the global front, Asian markets were trading mostly in green despite minutes of the last U.S. Federal Reserve meeting revealed Fed officials’ concerns over sticky inflation, with members seemingly getting cold feet on possible interest rate cuts. Back home, in the stock specific development, Power Grid dropped after consolidated net profit declined in the March quarter.

The BSE Sensex is currently trading at 74602.36, up by 381.30 points or 0.51% after trading in a range of 74158.35 and 74649.40. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.21%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.30%, Bankex up by 1.16%, Telecom up by 1.15%, IT up by 1.08% and TECK up by 1.06%, while Metal down by 1.47%, Healthcare down by 0.82%, Basic Materials down by 0.75%, Utilities down by 0.51% and Power down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.95%, Larsen & Toubro up by 1.84%, SBI up by 1.62%, ICICI Bank up by 1.28% and Infosys up by 1.19%. On the flip side, Power Grid down by 3.87%, Sun Pharma down by 3.69%, JSW Steel down by 1.27%, Tata Steel down by 0.69% and NTPC down by 0.59% were the top losers.

Meanwhile, the Indian Paper Manufacturers Association (IPMA) has said that imports of paper and paperboard in the country rose by 34 per cent to 19.3 lakh tonnes in 2023-24, driven by higher shipments from ASEAN countries. In value terms, paper imports doubled to Rs 13,248 crore in FY24 from Rs 6,140 crore in FY21. It said the increasing imports of these products are hurting the domestic industry. It noted that paper and paperboard imports, as per the commerce ministry data, were 14.3 lakh tonnes in the financial year ended on March 31, 2023. 

The IPMA has said that Association of Southeast Asian Nations (ASEAN) has come to account for the largest chunk in the paper import pie in the country accounting for 27 per cent share. Paper imports from ASEAN, which enter the country at zero import duty under the ASEAN-India free trade agreement, doubled to 5.1 lakh tonnes during the year from 2.7 lakh tonnes in FY23. The ASEAN is a 10-member bloc. The members include Singapore, Thailand, Cambodia and Laos. 

The association said the unprecedented imports of paper and paperboard pose a significant threat to India's Make-in-India initiative Aatmanirbhar Bharat. The major paper grades which are coming from these nations include printing paper, coated paper, and paperboard. IPMA said that this surge comes despite substantial investments by the domestic industry in recent years to upgrade technology, improve product quality, and enhance agro / farm forestry practices. It claimed that these investments are now at risk due to the influx of duty-free imports. It has urged the government to increase the basic customs duty (BCD) on the import of paper and paperboard from 10 per cent to 25 per cent. 

The CNX Nifty is currently trading at 22715.30, up by 117.50 points or 0.52% after trading in a range of 22577.45 and 22728.70. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.09%, Adani Enterprises up by 1.84%, Larsen & Toubro up by 1.84%, SBI up by 1.70% and Eicher Motors up by 1.52%. On the flip side, Power Grid down by 3.94%, Sun Pharma down by 3.68%, Hindalco down by 2.32%, Coal India down by 1.21% and Grasim Industries down by 1.18% were the top losers.

Asian markets were trading mostly in green; Straits Times rose 11.98 points or 0.36% to 3,319.88, KOSPI increased 4.40 points or 0.16% to 2,727.86, Nikkei 225 surged 486.12 points or 1.26% to 39,103.22 and Taiwan Weighted added 55.6 points or 0.26% to 21,607.43. However, Hang Seng declined 342.78 points or 1.79% to 18,852.82 and Shanghai Composite weakened 43.74 points or 1.38% to 3,114.80.