Benchmarks trade near day’s highs amid hopes of possible Israel-Iran negotiations

Indian equity benchmarks were hovering near day’s highs in late trade. The markets continue to trade on an optimistic note amid rising hopes of negotiation between Iran and Israel after U.S. President Donald Trump said he will decide within two weeks whether to authorize a direct U.S. military strike on Iran. Besides, markets experienced value buying as traders opted to buy stocks at lower price following the recent pullback. Further, continued fund inflow by Foreign Institutional Investors (FIIs) have supported the investors’ sentiments.

On the global front, Asian equity markets were trading mixed. European equity markets were trading higher despite U.K. retail sales fell 2.7 percent on a monthly basis in May, in contrast to the revised 1.3 percent increase in April. 

The BSE Sensex is currently trading at 82185.14, up by 823.27 points or 1.01% after trading in a range of 81323.20 and 82297.36. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.91%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were Telecom up by 2.23%, Realty up by 1.52%, Utilities up by 1.43%, Power up by 1.36% and PSU up by 1.21%, meanwhile, there were no losers on BSE sectoral index.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.99%, Bharti Airtel up by 2.85%, Power Grid Corporation of India up by 2.27%, Bharat Electronics up by 1.86% and Reliance Industries up by 1.34%. On the flip side, Maruti Suzuki down by 0.13% and Axis Bank down by 0.03% were the top losers.

Meanwhile, industry body, the Aluminium Extrusion Manufacturers Association of India (ALEMAI) has called for safeguards from the government to revive underutilized domestic units as free trade pacts with several Far East countries, which allow duty-free imports, affect the viability of nearly 500 home-grown entities. ALEMAI also advocated the adoption of quality and standards-compliant materials among its members and across the industry, especially in light of the growing challenges posed by cheap and substandard imports.

Industry body further said ‘The total installed production capacity in India is 3.5 million tonnes per annum. However, the aluminium extrusion industry can utilize only around 2 million tonnes. The remaining 1.5 million tonnes is imported. This is primarily because of the price difference and lack of enforcement of standards. By voluntarily implementing BIS certification, we are taking responsibility for raising product quality and reducing our reliance on low-cost imports.’

Welcoming recent government actions, such as the imposition of anti-dumping duties on solar imports from China, Thailand and Vietnam, ALEMAI also called for further policy support, especially on the issue of technical manpower.

The CNX Nifty is currently trading at 25032.80, up by 239.55 points or 0.97% after trading in a range of 24783.65 and 25078.35. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were JIO Financial Services up by 3.03%, Mahindra & Mahindra up by 2.87%, Bharti Airtel up by 2.78%, Power Grid Corporation of India up by 2.29% and HDFC Life Insurance up by 2.01%. On the flip side, Hero MotoCorp down by 1.90%, Bajaj Auto down by 1.58%, ONGC down by 0.24%, Bajaj Finance down by 0.22% and Maruti Suzuki down by 0.12% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 292.74 points or 1.24% to 23,530.48, Straits Times rose 1.6 points or 0.04% to 3,895.78, Taiwan Weighted added 42.24 points or 0.19% to 22,045.74 and KOSPI increased 44.10 points or 1.46% to 3,021.84, while Jakarta Composite plunged 21.04 points or 0.3% to 6,947.60, Nikkei 225 slipped 85.11 points or 0.22% to 38,403.23 and Shanghai Composite weakened 2.21 points or 0.07% to 3,359.90.

European markets were trading higher; UK’s FTSE 100 increased 34.2 points or 0.39% to 8,826.00, France’s CAC rose 34.55 points or 0.46% to 7,588.00 and Germany’s DAX gained 173.35 points or 0.75% to 23,230.73.