Benchmarks continue to trade in green in morning deals

Indian equity benchmarks continued to trade in green in morning deals, led by firm global cues, and foreign institutional investors (FIIs) slowly returning to buying ways, or at least slowing down their continuous selling of Indian equities. According to exchange data, Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 3,664.67 crore. Some support also came as a business survey showed growth in India's dominant services sector remained strong in November despite the steepest rise in prices for over a decade, while consistent demand led to a significant rise in business sentiment and record hiring. The HSBC final India Services Purchasing Managers' Index, compiled by S&P Global, stayed almost unchanged at 58.4 in November from 58.5 in October, but was lower than a preliminary estimate of 59.2. Meanwhile, the Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees in their accounts. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. The Bill piloted by Finance Minister Nirmala Sitharaman was approved by a voice vote.

On the global front, Asian markets are trading mostly in green even as caution prevailed ahead of the release of key U.S. jobs report and Fed Chair Jerome Powell's remarks this week. Back home, on the sectoral front, stocks related to aviation sector remained in focus with Rating agency ICRA’s report that domestic air passenger traffic is projected to rise 7-10 per cent to 164-170 million in the current fiscal year (FY25), while the aviation industry's loss is pegged at Rs 2,000-3,000 crore during the same period.  

The BSE Sensex is currently trading at 81108.72, up by 262.97 points or 0.33% after trading in a range of 80808.01 and 81245.39. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.38%, while Small cap index up by 0.46%.

The gaining sectoral indices on the BSE were IT up by 0.86%, PSU up by 0.68%, Capital Goods up by 0.55%, Bankex up by 0.53% and Realty up by 0.48%, while Telecom down by 0.30%, Auto down by 0.19%, Utilities down by 0.08%, Metal down by 0.08% and Basic Materials down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.73%, NTPC up by 1.16%, HDFC Bank up by 1.04%, Infosys up by 0.93% and Larsen & Toubro up by 0.69%. On the flip side, Bharti Airtel down by 1.33%, Adani Ports &SEZ down by 0.99%, Reliance Industries down by 0.60%, Tata Steel down by 0.51% and Maruti Suzuki down by 0.43% were the top losers.

Meanwhile, the Lok Sabha has passed the Banking Laws (Amendment) Bill, 2024, which allows bank account holders to have up to four nominees in their accounts. Another proposed change relates to redefining 'substantial interest' for directorships, which could increase to Rs 2 crore instead of the current limit of Rs 5 lakh, which was fixed almost six decades ago. The Bill piloted by Finance Minister Nirmala Sitharaman was approved by a voice vote.

Replying to the debate on the Bill, Sitharaman said depositors will have the option of successive or simultaneous nomination facility, while locker holders will have only successive nomination. She also said that since 2014, the Government and the RBI have been extremely cautious, so that banks remain stable. She added ‘The intention is to keep our banks safe, stable, healthy, and after 10 years you are seeing the outcome’.

The bill proposes to increase the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, so as to align with the Constitution (Ninety-Seventh Amendment) Act, 2011. Once passed, the bill would allow a director of a Central Cooperative Bank to serve on the board of a State Cooperative Bank. The bill also seeks to give greater freedom to banks in deciding the remuneration to be paid to statutory auditors.

It also seeks to redefine the reporting dates for banks for regulatory compliance to the 15th and last day of every month instead of the second and fourth Fridays. Moving the Bill for consideration and passing, she said ‘The proposed amendments will strengthen governance in the banking sector and enhance customer convenience with respect to nomination and protection of investors’.

The CNX Nifty is currently trading at 24525.95, up by 68.80 points or 0.28% after trading in a range of 24446.85 and 24573.20. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were TCS up by 1.85%, HDFC Life Insurance up by 1.80%, Wipro up by 1.51%, SBI Life Insurance up by 1.36% and HDFC Bank up by 1.22%. On the flip side, Bharti Airtel down by 1.48%, Adani Ports &SEZ down by 1.38%, Cipla down by 1.36%, Adani Enterprises down by 1.19% and Dr. Reddy's Lab down by 1.04% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 14.21 points or 0.04% to 39,263.07, Taiwan Weighted added 132.53 points or 0.58% to 23,159.99, Hang Seng advanced 16.48 points or 0.08% to 19,762.80, Straits Times rose 14.55 points or 0.38% to 3,800.68 and Jakarta Composite gained 107.21 points or 1.49% to 7,303.23.

On the flip side, Shanghai Composite weakened 2.4 points or 0.07% to 3,376.41 and KOSPI dropped 47.29 points or 1.89% to 2,452.81.