Indices alter between positive and negative territories in late morning deals

Domestic equity markets were altering between positive and negative territories in late morning deals on weak cues from other Asian markets. Selling in Eternal, Infosys, TCS, Reliance Industries and Adani Ports companies’ stocks hit the markets. However, broader indices outperformed their large peers with BSE Mid cap index and Small cap index gaining in the range of 0.60-1.05%. Traders were getting some relief as India and the European Union (EU) chief negotiators have concluded another round of talks on the proposed free trade agreement (FTA) and agreed to reach a deal in two phases. On the BSE sectoral front, traders were seen pilling up positions in Realty, Healthcare, Utilities, Power and PSU, while selling was witnessed in IT, TECK, Energy and Metal.

On the global front, Asian markets were trading mostly in red as traders reacted to the surprise downgrade of the US government's credit rating by one notch to Aa1 from Aaa by Moody's Ratings, being the last of the three major credit rating agencies to downgrade it. Back home, in the stock specific development, Zen Technologies rose on strong Q4 results.

The BSE Sensex is currently trading at 82294.92, down by 35.67 points or 0.04% after trading in a range of 82116.00 and 82424.10. 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 0.61%, while Small cap index up by 1.03%.

The top gaining sectoral indices on the BSE were Realty up by 2.14%, Healthcare up by 0.92%, Utilities up by 0.84%, Power up by 0.75% and PSU up by 0.70%, while IT down by 0.71%, TECK down by 0.69%, Energy down by 0.07% and Metal down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.99%, Sun Pharma up by 0.93%, SBI up by 0.90%, Bajaj Finance up by 0.86% and Power Grid up by 0.72%. On the flip side, Eternal down by 1.87%, Infosys down by 1.23%, TCS down by 0.95%, Reliance Industries down by 0.60% and Adani Ports down by 0.59% were the top losers.

Meanwhile, the credit rating agency ICRA in its report has said that India's apparel and home textiles trade with the United Kingdom is poised for significant growth, with volumes expected to double over the next five to six years, driven by the recently concluded Free Trade Agreement (FTA) between the two countries. The FTA is expected to be operational in calendar year (CY) 2026, subject to legal review. Moreover, under the agreement, India will reduce tariffs on 90 per cent of British goods, with 85 per cent becoming completely duty-free over a period of ten years, while in return, Britain has agreed to lower its tariffs on certain products, resulting in 99 per cent of India's exports to the UK facing zero duties.

Pointing out the underutilized trade partnership between both countries given the size and potential of both economies, ICRA has said that India-UK trade accounts for around 2 per cent of India's total trade. Meanwhile, it added that, India is currently the 12th largest trading partner of the UK and stands in fifth position as far as apparel and home textiles imports are concerned. In CY2024, apparel and home textiles imported by the UK from India stood at $1.4 billion, representing a 6.6 per cent share of textiles imported by the UK. Furthermore, the US and the European Union (EU) continue to be the major export markets for Indian apparel and home textiles exporters, accounting for a 61 per cent share in CY2024. It further added that while the UK's share had remained stable at 7-8 per cent over the past five years amidst flattish growth, the same is expected to reach 11-12 per cent by CY2027, reflecting an 11 per cent CAGR between CY2024 and CY2027.

ICRA highlighted that currently the UK levy an 8-12 per cent duty on apparel and home textiles imported from India and with tariffs being eliminated on 99 per cent of Indian goods, including textiles, incremental capacities are likely to be added in the next 4-5 years to execute orders. In calendar year 2024, China was the biggest apparel and home textiles exporter to the UK with a 25 per cent share, followed by Bangladesh (22 per cent share), Turkey (8 cent share) and Pakistan (6.8 per cent share). Post-implementation of the FTA, with zero-duty access on apparel and home textiles exported, India would have a level playing field compared to the existing duty-free access nation status like Bangladesh, Vietnam, and Pakistan.

The CNX Nifty is currently trading at 25010.85, down by 8.95 points or 0.04% after trading in a range of 24965.80 and 25062.95. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 2.98%, Eicher Motors up by 1.82%, Hero MotoCorp up by 1.46%, NTPC up by 1.08% and Sun Pharma up by 0.93%. On the flip side, Eternal down by 1.86%, Infosys down by 1.27%, Tata Consumer down by 0.94%, Grasim Industries down by 0.92% and Dr. Reddy's Lab down by 0.90% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 66.83 points or 0.29% to 23,278.22, Straits Times fell 9.75 points or 0.25% to 3,888.12, KOSPI dropped 26.83 points or 1.03% to 2,600.04, Nikkei 225 slipped 282.94 points or 0.76% to 37,470.78 and Taiwan Weighted lost 319.86 points or 1.49% to 21,523.83, while Jakarta Composite gained 15.61 points or 0.22% to 7,122.14 and Shanghai Composite strengthened 0.45 points or 0.01% to 3,367.91.