Key gauges remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, led by gains in Metal, Utilities and Telecom stocks. Traders took support with Commerce Minister Piyush Goyal’s statement that India and New Zealand are working to finalize a comprehensive and mutually beneficial Free Trade Agreement (FTA). The two countries had announced the launch of negotiations for an FTA earlier this week. Goyal emphasized the immense potential for collaboration between the two countries. Markets also found support due to easing crude oil prices and some inflow of foreign capital in domestic equity markets. Foreign institutional investors (FIIs) purchased equities worth Rs 694.57 crore on a net basis on Tuesday, according to exchange data. Sector-wise, steel stocks remained in watch after the commerce ministry's investigation arm DGTR recommended imposition of a 12 per cent provisional safeguard duty for 200 days on certain steel products with an aim to protect domestic players from surge in imports. On the global front, Asian markets are trading mostly in green even as a cautious undertone prevailed as investors weighed geopolitical tensions and waited for the Federal Reserve to provide an update on the rate outlook. 

The BSE Sensex is currently trading at 75480.19, up by 178.93 points or 0.24% after trading in a range of 75201.48 and 75506.59. 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 1.34%, while Small cap index was up by 1.40%.

The top gaining sectoral indices on the BSE were Metal up by 1.37%, Utilities up by 1.37%, Telecom up by 1.30%, Industrials up by 1.27% and Power up by 1.26%, while IT down by 1.20%, TECK down by 0.74% and FMCG down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Zomato up by 3.73%, Tata Steel up by 2.68%, Indusind Bank up by 2.27%, Bajaj Finance up by 2.21% and NTPC up by 1.35%. On the flip side, TCS down by 2.09%, Infosys down by 1.58%, HCL Technologies down by 1.51%, Tech Mahindra down by 1.43% and Sun Pharma down by 1.06% were the top losers.

Meanwhile, with an aim to establish a framework to promote trade in the local currencies, the Reserve bank of India (RBI) and Bank of Mauritius have signed Memorandum of understanding (MoU). The MoU will culminate in the implementation of the INR-MUR Local Currency Settlement (LCS) System to reduce dependency on hard currencies for cross-border transactions. The LCS system will help both parties to further develop their respective exchange markets and facilitate bilateral trade and settlement, financial market development, direct investment, remittances, economic growth and stability. The system will promote the use of the INR and MUR for all current account transactions and permissible capital account transactions between both the countries.

The MoU also provides for cooperation to create an INR Clearing Centre in Mauritius, and the inclusion of the INR as a settlement currency in the Mauritius Automated Clearing and Settlement System. The clearing centre will ultimately be extended to the Common Market for Eastern and Southern Africa’s Regional Payment and Settlement System (COMESA), for which the Bank of Mauritius is the settlement bank. Besides, it is proposed that the INR be included as a settlement currency, the initiative will promote Mauritius as a jurisdiction for clearing and settlement in INR on the continent. The RBI has cleared the way for trade using Indian Rupee by allowing authorized banks in India to open Special Rupee Vostro Accounts (SRVA) of correspondent banks of the trading partner.

In 2022, RBI to promote the growth of global trade with an emphasis on boosting exports from India and to attract increasing interest in the rupee implemented an arrangement allowing transactions in domestic currencies. India has been working towards making the Indian Rupee a global currency and allowing international trade settlement. This mechanism will help in internationalizing the Indian currency in the long run. Until now, the country has been able to do rupee-denominated trade with a few countries and is in close coordination with several others to implement the same arrangement.

The CNX Nifty is currently trading at 22909.10, up by 74.80 points or 0.33% after trading in a range of 22807.95 and 22910.55. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 3.38%, Tata Steel up by 2.68%, Indusind Bank up by 2.32%, Bajaj Finance up by 2.17% and Apollo Hospital up by 1.65%. On the flip side, TCS down by 2.07%, Infosys down by 1.58%, HCL Technologies down by 1.44%, Tech Mahindra down by 1.31% and Sun Pharma down by 0.91% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 18.86 points or 0.05% to 37,864.28, Hang Seng advanced 36.44 points or 0.15% to 24,777.01, KOSPI increased 18.24 points or 0.7% to 2,630.58, Straits Times rose 19.69 points or 0.51% to 3,914.66 and Jakarta Composite gained 62.63 points or 1.01% to 6,286.02.

On the flip side, Shanghai Composite weakened 2 points or 0.06% to 3,427.76 and Taiwan Weighted lost 285.93 points or 1.28% to 21,985.74.