Bourses trade at day’s high levels in early afternoon session

Indian markets added more points in early afternoon session as traders preferred to buy fundamental strong stocks. Indices traded at day’s high levels. Traders took some support with State Bank of India’s private report stating that Reserve Bank of India (RBI) may announce a 25 basis points repo rate cut in its monetary policy review to boost credit growth ahead of Diwali. Sector wise, sugar sector remained in limelight as India has notified sugar exports of 5,841 tonnes to the European Union (EU) under the tariff-rate quota (TRQ) scheme for 2025-26. TRQ is a quota for a volume of exports that enters the European Union with relatively low tariffs. 

On the global front, Asian markets were trading mixed as monetary base in Japan was down 3.9 percent on year in July. That follows the downwardly revised 3.5 percent annual decline in June (originally -3.3 percent). Banknotes in circulation were down 2.4 percent on year, while coins in circulation fell 1.4 percent. Current account balances shrank 4,3 percent on year, including a 2.2 percent decline in reserve balances.

The BSE Sensex is currently trading at 80911.76, up by 311.85 points or 0.39% after trading in a range of 80500.51 and 80927.50. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.55%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Metal up by 1.83%, Auto up by 1.25%, Basic Materials up by 1.23%, Realty up by 0.91% and Consumer Durables was up by 0.83%, while Power down by 0.14%, FMCG down by 0.03% and Bankex was down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Bharat Electronics up by 3.01%, Tata Steel up by 2.71%, Adani Ports up by 1.87%, Trent up by 1.75% and Reliance Industries up by 1.48%. On the flip side, Power Grid down by 0.77%, HDFC Bank down by 0.51%, Infosys down by 0.47%, SBI down by 0.42% and Eternal down by 0.34% were the top losers.

Meanwhile, Indian Biogas Association (IBA) has urged the Ministry of Petroleum and Natural Gas to provide a concessional electricity tariff for compressed biogas (CBG) plants to boost the clean energy transition. In a comprehensive submission to the ministry, IBA stressed that the cost of electricity is a significant operational expense, averaging 30 per cent of overall Operating Expenses (OPEX), ranging between 20 per cent and 48 per cent, based on the feedstock used and the scale of the plant.

IBA has suggested that the government should grant concessional electricity rates to CBG plants, which are at a disadvantage due to high industrial electricity charges that account for as high as 48 per cent of their running costs. The association's detailed cost study indicates that at an average industrial tariff of Rs 7 per kWh, electricity takes up a significant portion of the overall operating costs of commercial-scale CBG plants, like 34 per cent in paddy straw-based plants, 28 per cent in press mud-based plants, 19 per cent in cow dung-based plants, and as high as 48 per cent in Municipal Solid Waste (MSW)-based plants.

IBA's suggestion to the ministry to shift from applicable industrial tariffs for electricity (average rate of Rs 7 per kWh) to domestic tariffs (Rs 4.5 per kWh) would provide significant cost savings across all categories of feedstocks, and this tariff reform would make the sector much more operationally viable. The grouping underscored that high industrial tariff rates now function as a structural hindrance, having a direct bearing on profit margins and cash flows, especially in the most important formative years, when projects are consolidating. Financial pressure deters new market players from entering and hinders the expansion of existing units. IBA said the concessional tariff offer is set to enhance sector competitiveness, trigger private participation, and facilitate smoother integration of CBG into India's energy mix, supporting the government's wider clean energy transition goals.

The CNX Nifty is currently trading at 24670.00, up by 104.65 points or 0.43% after trading in a range of 24554.00 and 24684.65. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.42%, Bharat Electronics up by 3.01%, Tata Steel up by 2.71%, Eicher Motors up by 2.09% and Adani Ports up by 1.83%. On the flip side, ONGC down by 0.88%, Power Grid down by 0.86%, Tata Consumer down by 0.78%, HDFC Bank down by 0.54% and SBI down by 0.48% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 170.19 points or 0.69 to 24,678.00, Straits Times rose 32.18 points or 0.77 to 4,186.01, KOSPI increased 28.34 points or 0.9 to 3,147.75 and Shanghai Composite was up by 23.24 points or 0.65 to 3,583.19. On the flip side, Jakarta Composite plunged 29.88 points or 0.4 to 7,507.89, Taiwan Weighted lost 55.44 points or 0.24 to 23,378.94 and Nikkei 225 was up by 536.6 points or 1.33 to 40,263.00.