Sensex, Nifty trade lower in early deals

Indian equity benchmarks made negative start on Friday amid lack of directional cues from Wall Street as well as rise in crude oil prices. As per a report, oil prices for Brent crude hit their highest level since April on Thursday, holding above $87. Sensex and Nifty are trading lower with cut of around half a percent each in early deals amid selling at Bankex, Realty and Auto counters. However, broader indices -- BSE Mid & Small cap – are outperforming larger peers with decent gains. Traders took note of report that the government is working towards streamlining the application process for Indian business visas for companies that are not beneficiaries under the production-linked incentive (PLI) scheme but have set up manufacturing units across the 14 sectors covered under the scheme. Meanwhile, the Ministry of External Affairs (MEA) said India and the United Kingdom have agreed to deepen cooperation between their cyber agencies in order to build a safe and robust cyberspace. 

On the global front, Asian markets are trading mixed as traders largely stayed reluctant to make significant moves amid a lack of any new catalyst after a holiday on Wall Street. They now await the release of crucial US monthly jobs report later in the day for cues on the outlook for interest rates. Softer-than-expected recent US economic data fueled speculation that the US Fed could slash interest rates in September. Back home, cement industry stocks are in focus as a report from rating agency ICRA showed that the cement sector has witnessed a muted growth of 2-3 per cent in the first quarter of current fiscal on account of a slowdown in construction activity because of the Lok Sabha polls. In stock specific development, RVNL hit fresh 52-week high on inking deal with DMRC.

The BSE Sensex is currently trading at 79654.32, down by 395.35 points or 0.49% after trading in a range of 79478.96 and 79876.25. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.14%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.88%, Industrials up by 0.88%, PSU up by 0.79%, Healthcare up by 0.62% and Oil & Gas up by 0.59% while, Bankex down by 1.10%, Realty down by 0.37%, Auto down by 0.22%, Consumer discretionary down by 0.07% and Telecom down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.36%, NTPC up by 0.79%, Sun Pharma up by 0.73%, JSW Steel up by 0.71% and Reliance Industries up by 0.70%. On the flip side, HDFC Bank down by 3.68%, Mahindra & Mahindra down by 1.74%, Titan Company down by 0.91%, Tata Steel down by 0.91% and Indusind Bank down by 0.78% were the top losers.

Meanwhile, the government is set to streamline visa norms for professionals from foreign countries, including China, working in non-Production Linked Incentive (PLI) sectors. This initiative, part of a broader agenda to foster international trade and economic cooperation, was unveiled by Rajesh Kumar Singh, Secretary of the Department of Promotion of Industry and Internal Trade (DPIIT). Singh said ‘Plans are underway to extend streamlining of visas to non-PLI beneficiaries from foreign countries, including China, who are operating in the same centres as beneficiaries.’ Currently, the Indian government is focused on easing visa regulations for Chinese professionals in PLI sectors, a move that underscores the country’s commitment to improving bilateral trade relations.

However, he highlighted that the government plans to extend these streamlined visa procedures to include foreign professionals operating in non-PLI sectors as well. This decision is expected to benefit foreign nationals working alongside PLI beneficiaries in key industrial hubs. The streamlined visa norms are designed to ensure that bureaucratic hurdles do not impede the inflow of talent essential for driving growth across various sectors. In addition to visa reforms, the DPIIT Secretary revealed that the government is committed to addressing tariff barriers that hinder the import of essential electronic components. A case-by-case approach will be adopted to remove these barriers, which are seen as critical to ensuring the competitiveness of India’s electronics industry. Singh also emphasized the need to phase out duty inversion, a situation where finished products attract lower taxes compared to raw materials.

Regarding the much-anticipated e-commerce policy, Singh noted that while the policy is in the pipeline, there is no definitive timeline for its release. The government is also exploring the liberalization of the Foreign Direct Investment (FDI) regime across several sectors. This move, currently in the internal stages of consideration, is expected to attract more foreign investment and drive economic growth. Singh pointed out that FDI from countries sharing land borders with India constitutes less than 1 per cent of the total FDI inflow, highlighting the need for broader reforms.

The CNX Nifty is currently trading at 24203.90, down by 98.25 points or 0.40% after trading in a range of 24170.35 and 24260.95. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.55%, ONGC up by 1.55%, Divi's Lab up by 1.38%, Larsen & Toubro up by 1.19% and NTPC up by 0.95%. On the flip side, HDFC Bank down by 3.73%, Mahindra & Mahindra down by 1.80%, Titan Co down by 1.11%, Indusind Bank down by 0.96% and Tata Steel down by 0.95% were the top losers.

Asian markets are trading mixed; Hang Seng declined 195.9 points or 1.09% to 17,832.38, Nikkei 225 slipped 54.29 points or 0.13% to 40,859.36, Shanghai Composite weakened 27.59 points or 0.93% to 2,929.98 and Straits Times fell 24.25 points or 0.7% to 3,415.63. On the other hand, KOSPI rose 35.45 points or 1.25% to 2,860.39, Jakarta Composite gained 34.39 points or 0.48% to 7,255.28 and Taiwan Weighted was up by 24.4 points or 0.1% to 23,546.93.