Benchmarks remain in green in late morning deals

Indian equity benchmarks remained in green in late morning deals, led by gains in Energy, Oil & Gas and Metal stocks amid rally in global markets.  Traders took support with the Reserve Bank’s Financial Stability Report (FSR) stating that the decline in bad assets of banks to a 12-year low of 2.8 per cent and strong GDP numbers will help in sustaining the growth momentum and withstanding global shocks. It said the real gross domestic product (GDP) rose by 8.2 per cent in 2023-24 against 7 per cent in the preceding fiscal, despite muted private and government consumption and external demand conditions acting as a drag. Some support also came as Commerce and Industry Minister Piyush Goyal held meetings with export promotion councils as well as industry associations to discuss strategies to enhance global market outreach, further boost India's exports by focusing on key sectors, and addressing trade barriers. Meanwhile, the government launched an initiative to facilitate onboarding of 5,00,000 micro and small enterprises on the Open Network for Digital Commerce (ONDC) platform. 

On the global front, Asian markets are trading mostly in green bolstered by the growing view that cooling U.S. inflation will allow the Federal Reserve ease rates this year. Back home, on the sectoral front, stocks related to Pharma sector remained in watch with Pharmexcil Director General Udaya Bhaskar’s statement that as many as 15 blockbuster drugs whose revenues worth $112 billion will be off-patented during 2023 to 2029 and the Indian pharma industry will have a growth opportunity of $10 billion in the form of generics (including complex). 

The BSE Sensex is currently trading at 79564.89, up by 321.71 points or 0.41% after trading in a range of 79308.78 and 79671.58. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.57%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Energy up by 1.63%, Oil & Gas up by 1.57%, Metal up by 1.33%, PSU up by 1.17% and Healthcare up by 1.10%, while Capital Goods down by 0.14%, Auto down by 0.13% and TECK down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.85%, SBI up by 1.81%, Reliance Industries up by 1.48%, Tata Steel up by 1.32% and Asian Paints up by 1.27%. On the flip side, Indusind Bank down by 1.33%, HCL Technologies down by 0.84%, Bharti Airtel down by 0.73%, Axis Bank down by 0.53% and Mahindra & Mahindra down by 0.50% were the top losers.

Meanwhile, the Reserve Bank of India (RBI), with the approval of the Government of India, has introduced a revised Framework on Currency Swap Arrangement for SAARC (South Asian Association for Regional Cooperation) countries, covering the period from 2024 to 2027. A currency swap between two countries is an agreement or contract to exchange currencies with predetermined terms and conditions.

The SAARC Currency Swap Facility originally began on November 15, 2012. Its primary goal was to offer financial support for short-term foreign exchange requirements or balance of payment issues among SAARC nations. The revised framework for 2024-2027 introduces a new INR Swap Window, which includes various concessions for swap support in Indian Rupees. The total amount available under this facility is Rs 250 billion. This move aims to enhance financial cooperation among SAARC countries by providing them with easier access to Indian Rupees.

In addition to the INR Swap Window, the RBI will also continue to offer swap arrangements in US Dollars and Euros through a separate US Dollar/Euro Swap Window. The overall amount available under this facility is USD 2 billion. This ensures that SAARC countries have access to multiple currencies for their short-term financial needs.

The CNX Nifty is currently trading at 24138.80, up by 94.30 points or 0.39% after trading in a range of 24062.85 and 24174.00. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 2.60%, ONGC up by 2.26%, SBI up by 1.87%, Tata Motors up by 1.80% and SBI Life Insurance up by 1.69%. On the flip side, Bharti Airtel down by 1.51%, Indusind Bank down by 1.40%, Grasim Industries down by 0.87%, Eicher Motors down by 0.77% and HCL Technologies down by 0.68% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 72.71 points or 0.41% to 17,789.18, Jakarta Composite gained 90.67 points or 1.3% to 7,058.62, Shanghai Composite strengthened 31.43 points or 1.07% to 2,977.28, KOSPI increased 6.38 points or 0.23% to 2,790.44, Nikkei 225 surged 176.85 points or 0.45% to 39,518.39 and Taiwan Weighted added 177.6 points or 0.78% to 23,083.58.

On the global front, Straits Times fell 4.43 points or 0.13% to 3,338.92.