Indices trade near neutral lines in early noon

Indian equity benchmarks were trading flat in early afternoon deals, with Sensex and Nifty exhibiting a mixed trend, as investors reacted to mixed industrial output and retail inflation readings and awaited a Federal Reserve interest-rate cut next week. However, traders got relief, after the Department of Economic Affairs (DEA), Ministry of Finance, has notified the Foreign Exchange (Compounding Proceedings) Rules, 2024 under powers given under section 46 read with section 15 of the Foreign Exchange Management Act (FEMA), 1999. These amendments indicate commitment of the Government towards promoting ‘ease of investment’ for investors and ‘ease of doing business’ for businesses.

On the global front, Asian markets were trading mostly in green, as Japan's industrial production expanded more-than-expected in July after falling in the previous month. The final data from the Ministry of Economy, Trade, and Industry showed that industrial production advanced 3.1 percent on a monthly basis, reversing a 4.2 percent decrease in June. In the flash report, the rate of growth was 2.8 percent.

The BSE Sensex is currently trading at 82980.34, up by 17.63 points or 0.02% after trading in a range of 82653.22 and 83092.93. There were 15 stocks advancing against 14 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.50%, while Small cap index up by 0.95%.

The top gaining sectoral indices on the BSE were Realty up by 1.47%, Metal up by 1.15%, Consumer Durables up by 0.86%, Basic Materials up by 0.82% and IT up by 0.65%, while FMCG down by 0.50%, Energy down by 0.23%, Oil & Gas down by 0.15% and Healthcare down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.05%, Bajaj Finserv up by 2.02%, Tata Steel up by 1.55%, Indusind Bank up by 1.45% and Tata Motors up by 0.93%. On the flip side, Adani Ports & SEZ down by 1.25%, ITC down by 1.17%, Mahindra & Mahindra down by 0.84%, Asian Paints down by 0.84% and Bharti Airtel down by 0.73% were the top losers.

Meanwhile, RBI Deputy Governor M Rajeshwar Rao has asked the National Bank for Financing Infrastructure and Development (NaBFID) to develop a sustainable business model not dependent on government support. He said such a self-sustainable model has to evolve over the medium term, which also doesn't depend on regulatory dispensations as well. He said it is also necessary that over the medium-term, plans for self-sustainable operations, under a business model that is not reliant on continuous government support, or regulatory dispensations would need to be in place. He added ‘the dynamic nature of our times necessitates agile strategies for institutions with a focus on sectors prioritised by the government’.

Rao stated that there is need for higher private sector play when it comes to infrastructure investments, pointing out that in the past, the government has played an important role. NaBFID can play a transformative role as a catalyst to get the private sector investments. As NaBFID is still in its formative phase, the focus must be on equipping itself with the necessary resources, skills and knowledge through concerted efforts on human capital development, institution strengthening, and adoption of best practices. 

He noted that NaBFID must particularly look to strengthening the risk management and establishment of robust assurance systems from the outset, fostering a sound risk culture going forward. The entity also needs to quickly develop project appraisal expertise and establish itself as a leader, setting benchmarks in the market for its project selection, appraisal and monitoring to give comfort to lenders and stakeholders. 

The CNX Nifty is currently trading at 25379.80, down by 9.10 points or 0.04% after trading in a range of 25292.45 and 25430.50. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.13%, Bajaj Finance up by 2.31%, Bajaj Finserv up by 2.20%, Indusind Bank up by 1.54% and Tata Steel up by 1.53%. On the flip side, SBI Life Insurance down by 1.40%, HDFC Life Insurance down by 1.39%, Adani Ports & SEZ down by 1.31%, ITC down by 1.25% and Tata Consumer Products down by 0.97% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 106.4 points or 0.49% to 21,759.65, Hang Seng advanced 132.86 points or 0.76% to 17,373.25, Jakarta Composite gained 0.07 points or 0% to 7,798.22, Straits Times rose 5.95 points or 0.17% to 3,562.48 and KOSPI increased 3.32 points or 0.13% to 2,575.41, while Shanghai Composite weakened 12.71 points or 0.47% to 2,704.41 and  Nikkei 225 slipped 251.51 points or 0.69% to 36,581.76.