Markets maintain gains in late trade deals

Indian equity markets maintained gains in late trade as softer U.S. jobs data fuelled expectations Federal Reserve’s rate cut in September. Besides, considerable value buying across the broader markets following the recent pullback, supported the up move. Meanwhile, investors kept a close eye on Reserve Bank of India (RBI) Monetary Policy Committee meet (MPC) scheduled from August 4 to August 6, for further clues. However, persistent foreign funds outflows by foreign institutional investors (FIIs) have capped gains. The FIIs were the net sellers on Friday’s trade, offloading equities worth Rs 2,821.45 crore.

On the global front, Asian equity markets were trading mixed, tracking weak cues from Wall Street overnight. All European markets were trading higher after falling sharply in the previous session on worries about the impact from higher U.S. tariffs.

The BSE Sensex is currently trading at 81033.41, up by 433.50 points or 0.54% after trading in a range of 80500.51 and 81093.19. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.99%, while Small cap index was up by 0.64%.

The top gaining sectoral indices on the BSE were Metal up by 2.44%, Basic Materials up by 1.69%, Realty up by 1.61%, Auto up by 1.41% and TECK up by 1.35%, while Bankex down by 0.08% and FMCG down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 4.08%, Bharat Electronics up by 3.24%, Adani Ports & SEZ up by 2.67%, Tech Mahindra up by 2.15% and TCS up by 1.87%. On the flip side, HDFC Bank down by 1.03%, Power Grid Corporation down by 0.76%, ICICI Bank down by 0.33% and Hindustan Unilever down by 0.31% 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 24717.45, up by 152.10 points or 0.62% after trading in a range of 24554.00 and 24734.65. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 4.08%, Hero MotoCorp up by 3.58%, Bharat Electronics up by 3.13%, Adani Ports & SEZ up by 2.62% and Hindalco up by 2.20%. On the flip side, HDFC Bank down by 1.07%, ONGC down by 0.75%, Power Grid Corporation down by 0.72%, HDFC Life Insurance down by 0.57% and Apollo Hospitals Enterprise down by 0.52% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 146.19 points or 0.59 to 24,654.00, Straits Times rose 46.56 points or 1.12 to 4,200.39, Shanghai Composite strengthened 23.36 points or 0.65 to 3,583.31 and KOSPI increased 28.34 points or 0.9 to 3,147.75, while Nikkei 225 slipped 536.6 points or 1.33 to 40,263.00, Taiwan Weighted lost 55.44 points or 0.24 to 23,378.94 and Jakarta Composite plunged 71.29 points or 0.95 to 7,466.48.

All European markets were trading higher; UK’s FTSE 100 increased 41.67 points or 0.46 to 9,110.25, France’s CAC rose 71.04 points or 0.94 to 7,617.20 and Germany’s DAX gained 324.53 points or 1.39 to 23,750.50.