Indices trade below neutral lines in early afternoon session

Indian equity benchmarks were trading below their neutral lines in early afternoon session, due to selling at IT, Auto and Utilities counters, amid mixed cues from other Asian markets. Rising Covid-19 cases in the country and U.S. tariff uncertainty also kept investors on edge. Traders failed to take any sense of relief with reports that the Government of India has restored benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for exports made by Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and units operating in Special Economic Zones (SEZs).

On the global front, Asian markets were trading mixed, even after China's industrial profits increased in April despite higher US trade tariffs. The National Bureau of Statistics said that industrial profits grew 3.0 percent in April from the same period last year. This was better than a 2.6 percent rise seen in March.

The BSE Sensex is currently trading at 81615.07, down by 561.38 points or 0.68% after trading in a range of 81261.96 and 82410.52. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.17%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Telecom up by 0.78%, Industrials up by 0.60%, Capital Goods up by 0.45%, Realty up by 0.43% and Consumer Durables up by 0.22%, while IT down by 0.44%, Auto down by 0.43%, Utilities down by 0.41%, Power down by 0.28% and FMCG down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Trent up by 1.80%, Asian Paints up by 0.76%, SBI up by 0.66%, Sun Pharma up by 0.42% and Tata Steel up by 0.37%. On the flip side, Ultratech Cement down by 1.99%, NTPC down by 1.43%, Tata Motors down by 0.91%, ICICI Bank down by 0.72% and Axis Bank down by 0.71% were the top losers.

Meanwhile, Niti Aayog in a report titled 'Designing a Policy for Medium Enterprises', has pitched for tailored financial tools, technology integration and a centralised digital portal to transform medium enterprises into future growth engines of India's economy. It highlighted the critical yet under-leveraged role played by medium enterprises and outlined targeted interventions to unlock their full potential.

To address challenges faced by medium enterprises, it recommended the introduction of a working capital financing scheme linked to enterprise turnover, a Rs 5 crore credit card facility at market rates and expedited fund disbursal mechanisms through retail banks, overseen by the Ministry of MSME. It also suggested the upgradation of existing technology centres into sector-specific and regionally customised India SME 4.0 competence centres to promote the adoption of Industry 4.0 solutions.

The Aayog also recommended the establishment of a dedicated R&D cell within the Ministry of MSME, leveraging the Self-Reliant India Fund for cluster-based projects of national significance. It also called for the development of sector-focused testing and certification facilities to ease compliance and enhance product quality. It also suggested the creation of a dedicated sub-portal within the Udyam platform, featuring scheme discovery tools, compliance support, and AI-based assistance to help enterprises navigate resources effectively.

The report emphasised that unlocking the potential of medium enterprises requires a shift toward inclusive policy design and collaborative governance. With strategic support in finance, technology, infrastructure, skilling, and information access, medium enterprises can emerge as the drivers of innovation, employment, and export growth.

The CNX Nifty is currently trading at 24848.85, down by 152.30 points or 0.61% after trading in a range of 24737.70 and 25062.90. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.87%, Trent up by 1.78%, Asian Paints up by 0.81%, SBI up by 0.70% and Adani Enterprises up by 0.62%. On the flip side, Ultratech Cement down by 1.94%, NTPC down by 1.46%, Grasim Industries down by 1.31%, Tata Consumer Products down by 0.94% and Tata Motors down by 0.93% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 87.72 points or 0.38% to 23,370.05, Jakarta Composite gained 2.5 points or 0.03% to 7,190.85, Straits Times rose 10.29 points or 0.27% to 3,885.89 and Nikkei 225 surged 192.58 points or 0.51% to 37,724.11, while Shanghai Composite weakened 7.25 points or 0.22% to 3,339.59, KOSPI dropped 7.18 points or 0.27% to 2,637.22 and Taiwan Weighted lost 200.03 points or 0.94% to 21,336.54.