Markets continue to witness gains in late morning deals

Indian equity markets continued to witness gains in late morning deals on account of buying in SBI, Axis Bank, NTPC, Bharat Electronics and Power Grid companies’ stocks. Meanwhile, the session was also proving positive for broader indices with BSE Mid cap index and Small cap index gaining in the range of 0.35-0.55%. Sentiments got boost as British Prime Minister Keir Starmer said that India is on track to becoming the third largest economy by 2028, an economic superpower in the making, and the United Kingdom is perfectly placed to be partners on that journey. The sentiments were further supported by Indian rupee appreciating 8 paise to 88.71 against the dollar on increased selling of the US currency by exporters and banks.

On the global front, Asian markets were trading mostly in red following negative cues from US markets overnight, on waning optimism over the outlook for interest rate amid concerns about the ongoing U.S. government shutdown. Back home, on the BSE sectoral front, traders were seen piling up positions in Realty, Telecom, Utilities, Bankex and PSU, while selling was witnessed in Metal, Basic Materials and IT. 

The BSE Sensex is currently trading at 82504.62, up by 332.52 points or 0.40% after trading in a range of 82072.93 and 82616.19. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.53%.

The top gaining sectoral indices on the BSE were Realty up by 1.92%, Telecom up by 1.48%, Utilities up by 1.18%, Bankex up by 0.95% and PSU up by 0.93%, while Metal down by 1.19%, Basic Materials down by 0.42% and IT down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.00%, Axis Bank up by 1.55%, NTPC up by 1.52%, Bharat Electronics up by 1.29% and Power Grid up by 1.22%. On the flip side, Tata Steel down by 1.73%, TCS down by 1.37%, Hindustan Unilever down by 0.09%, Kotak Mahindra Bank down by 0.05% and Eternal down by 0.01% were the top losers.

Meanwhile, with an aim to address challenges faced by the textile industry and encourage fresh investments, the Textile Ministry has came up with significant amendments to the Production Linked Incentive (PLI) Scheme for textile products. The amendments to the scheme for man-made fibre (MMF) apparel, fabrics and technical textile products include expansion of products eligible to receive sops, reduction in minimum investment threshold by half, and lowering incremental turnover criteria for availing incentives to 10 per cent from 25 per cent earlier. These amendments are designed to address industry challenges, enhance ease of doing business, encourage fresh investments in the sector and accelerate growth, underscoring the government's focus on fostering employment and driving India's leadership in the global textile market.

Under the revised scheme, more products have been added to the list of eligible items for receiving government's financial support with the inclusion of 8 new HSN codes for MMF apparel and 9 new HSN codes for MMF fabrics. Moreover, applicants can now establish project units within the existing companies. Besides, starting from the current financial year, applicants have to demonstrate a minimum of 10 per cent incremental turnover over the previous year to qualify for incentives from Year 2 onwards, as against 25 per cent turnover criteria earlier. The Textile Ministry said that the revisions will significantly reduce entry barriers and financial thresholds, enabling faster execution. 

The ministry has opened PLI scheme application portal until December 31, 2025 in order to encourage wider participation from the industry. On September 24, 2021, the government of India notified the PLI Scheme for Textiles with an objective to promote production of MMF apparel & fabrics and products of technical textiles in the country to enable the industry achieve size and scale, become competitive, create employment opportunities for people and support creation of a viable enterprise. Further, 74 participant companies with committed investment of Rs 28,711 crore have been selected as beneficiaries under the PLI scheme, so far.

The CNX Nifty is currently trading at 25282.55, up by 100.75 points or 0.40% after trading in a range of 25156.85 and 25315.55. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were SBI up by 2.02%, Cipla up by 1.86%, SBI Life up by 1.67%, NTPC up by 1.59% and Axis Bank up by 1.54%. On the flip side, Tata Steel down by 1.68%, TCS down by 1.53%, JSW Steel down by 1.08%, Hindalco down by 0.85% and Shriram Finance down by 0.64% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 399.44 points or 0.82% to 48,181.00, Jakarta Composite plunged 21.21 points or 0.26% to 8,229.73, Shanghai Composite weakened 26.14 points or 0.66% to 3,907.83, Hang Seng declined 365.59 points or 1.37% to 26,387.00 and Straits Times fell 6.27 points or 0.14% to 4,434.23. However, KOSPI increased 51.42 points or 1.43% to 3,600.63.