Bulls take charge over Dalal Street with gap-up opening on Monday

Indian markets extended their previous session’s northward journey and made gap-up opening on Monday following the BJP-led alliance’s significant victories in the Maharashtra state assembly elections. There are expectations of increased government spending to improve economic growth. Sensex and Nifty are trading in fine-fettle with gains of around one and half a percent each in early deals. Some support came with report that the Trade and Economic Partnership Agreement (TEPA), signed in March 2024 between India and the European Free Trade Association (EFTA) countries, is poised to unlock new opportunities for Indian exports and drive investments worth $100 billion. 

Global cues also remained supportive with most of the Asian markets trading higher, following the broadly positive cues from Wall Street on Friday, boosted by strong gains in markets in Japan, Indonesia and South Korea as traders remain optimistic about a 25-basis point rate cut by the US Fed in December after data showing consumer sentiment in the U.S. improved less than expected in November.

Back home, realty stocks are in focus with a private report that 26 major listed real estate firms in India have sold properties worth around Rs 35,000 crore during the September quarter with Godrej Properties reporting the highest sales bookings. 

The BSE Sensex is currently trading at 80267.65, up by 1150.54 points or 1.45% after trading in a range of 80056.35 and 80452.94. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index jumped 1.76%, while Small cap index was up by 1.79%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 3.61%, PSU up by 3.35%, Energy up by 3.12%, Realty up by 3.01% and Capital Goods up by 2.96%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Larsen & Toubro up by 3.31%, SBI up by 3.28%, Mahindra & Mahindra up by 3.01%, Reliance Industries up by 2.41% and ICICI Bank up by 2.14%. On the flip side, JSW Steel down by 1.59%, Infosys down by 0.78% and HCL Technologies down by 0.26% were the few losers.

Meanwhile, the Trade and Economic Partnership Agreement (TEPA), signed in March 2024 between India and the European Free Trade Association (EFTA) countries, is poised to unlock new opportunities for Indian exports and drive investments worth $100 billion. According to the Ministry of Commerce and Industry, the agreement, designed to enhance bilateral trade and investment, covers a wide spectrum of goods, services, and sectors, ensuring a mutually beneficial partnership. Sunil Barthwal, Secretary, Department of Commerce, Ministry of Commerce and Industry, led a high-level delegation visited Norway on November 22, to further advance the objectives of TEPA.

His visit aimed to secure early implementation of the $100 billion investment commitment and boost market access for Indian goods and services across EFTA member countries–Norway, Switzerland, Iceland, and Liechtenstein. TEPA is a modern, ambitious trade agreement providing market access to 99.6 per cent of Indian exports, with EFTA countries offering concessions on 92.2 per cent of their tariff lines. This includes complete tariff elimination on non-agricultural products and substantial concessions on processed agricultural products. In return, India has committed to 82.7 per cent of its tariff lines, covering 95.3 per cent of EFTA exports.

The agreement is also set to stimulate India’s service exports in sectors such as IT, business, education, audio-visual, and cultural services. Enhanced access is provided through digital delivery (Mode 1), commercial presence (Mode 3), and temporary mobility of key personnel (Mode 4). TEPA is expected to bolster domestic manufacturing and support key initiatives like Make in India and Atmanirbhar Bharat. The agreement encourages investments in infrastructure, manufacturing, pharmaceuticals, chemicals, food processing, banking, and financial services. It also fosters job creation for India’s youth, along with enhanced vocational and technical training opportunities over the next 15 years. Additionally, TEPA facilitates technological collaboration, granting access to advanced technologies in precision engineering, health sciences, renewable energy, and research and development.

The CNX Nifty is currently trading at 24268.50, up by 361.25 points or 1.51% after trading in a range of 24212.25 and 24330.70. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were BPCL up by 5.72%, Bharat Electronics up by 4.68%, ONGC up by 4.13%, Shriram Finance up by 3.99% and Larsen & Toubro up by 3.50%. On the flip side, JSW Steel down by 1.91%, Infosys down by 0.62% and HCL Technologies down by 0.21% were the few losers.

Asian markets are trading mostly in green; Nikkei 225 surged 487.96 points or 1.27% to 38,771.81, Jakarta Composite gained 121.4 points or 1.69% to 7,316.97, Taiwan Weighted rose 91.31 points or 0.4% to 22,995.63, KOSPI increased 34.31 points or 1.37% to 2,535.55 and Straits Times added 8.83 points or 0.24% to 3,754.85. On the other hand, Hang Seng declined 98.15 points or 0.51% to 19,131.82 and Shanghai Composite was down by 11.8 points or 0.36% to 3,255.39.