Key gauges remain in red in morning deals

Indian equity benchmarks continued to trade lower in morning deals, as investors chose to book profits amid a weakening rupee and ongoing selling by foreign institutional investors. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,642.30 crore on Tuesday, according to exchange data. Market sentiment also remained cautious ahead of the Reserve Bank of India’s interest-rate decision and policy cues due Friday. On the global front, Asian markets are trading mostly in green, boosted by gains in technology stocks which mirrored their peers on tech-heavy Nasdaq amid strong rebound by Bitcoin after it moved sharply lower on Monday. Traders also remained optimistic about an interest rate cut by the US Fed next week.

The BSE Sensex is currently trading at 84887.83, down by 250.44 points or 0.29% after trading in a range of 84763.64 and 85269.68. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.91%, while Small cap index was down by 0.56%.

The top gaining sectoral indices on the BSE were IT up by 0.66%, Telecom up by 0.50% and TECK up by 0.35%, while PSU down by 1.30%, Capital Goods down by 0.99%, Power down by 0.98%, Auto down by 0.95% and Utilities down by 0.88% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.56%, Infosys up by 0.66%, Tech Mahindra up by 0.54%, HCL Technologies up by 0.40% and ICICI Bank up by 0.28%. On the flip side, Trent down by 1.34%, Bharat Electronics down by 1.32%, NTPC down by 1.23%, Bajaj Finserv down by 1.15% and Tata Motors Passenger down by 1.13% were the top losers.

Meanwhile, multilateral development bank -- Asian Development Bank (ADB) has approved a policy-based loan worth $650 million (around Rs 5,780 crore) to help the Government of India accelerate rooftop solar adoption and expand access to clean, affordable energy for 10 million households by 2027. The bank said that the financing under Subprogram 1 of the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program will support the government's flagship initiative Pradhan Mantri Surya Ghar: Muft Bijli Yojana (PMSGMBY) which aims to make rooftop solar systems widely accessible nationwide. ADB’s Country Director for India noted that the programme is accelerating India's clean energy transition by removing long-standing barriers to rooftop solar adoption, including financing constraints and regulatory gaps. Further, it is making rooftop solar affordable and accessible for millions of households while creating green jobs, empowering women, and strengthening the financial health of the power sector.

The bank highlighted that PMSGMBY will provide financial assistance to residential consumers for installing rooftop solar systems of up to 3 kilowatts (kW), with a 60 per cent subsidy for systems up to 2 kW and a 40 per cent subsidy for additional capacity between 2 kW and 3 kW. It has emphasized the key reform areas under the programme which include developing uniform operational guidelines and quality standards for residential rooftop solar systems and facilitating mass adoption among low- and middle-income households through collateral-free, low-interest loans. Besides, the programme will enhance the skills and capacity of at least 5,000 personnel, including 1,500 women, supporting India's Nationally Determined Contribution targets.

Moreover, the bank’s support is expected to significantly contribute to the nationwide objective of installing 30 gigawatts of rooftop solar capacity, achieving annual reductions of 28.8 million tonnes of CO2 emissions, and delivering affordable solar energy to millions of households. It will also boost private sector investment to create opportunities for manufacturers, vendors, and service providers across the renewable energy value chain. The bank's financing for the programme includes $3 million in technical assistance to help implement reforms, build institutional capacity, and promote gender-inclusive participation in the rooftop solar sector.

The CNX Nifty is currently trading at 25922.95, down by 109.25 points or 0.42% after trading in a range of 25897.40 and 26066.45. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.29%, Wipro up by 1.20%, TCS up by 1.20%, Infosys up by 0.83% and Eternal up by 0.55%. On the flip side, Hindustan Unilever down by 1.68%, Max Healthcare Inst down by 1.23%, Nestle down by 1.18%, HDFC Life Insurance down by 1.00% and Shriram Finance down by 1.00% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 794.55 points or 1.61% to 50,098.00, Taiwan Weighted added 202.17 points or 0.73% to 27,766.44, Jakarta Composite gained 18.07 points or 0.21% to 8,635.11, KOSPI increased 50.59 points or 1.27% to 4,045.52 and Straits Times rose 12.32 points or 0.27% to 4,550.28.

On the flip side, Shanghai Composite weakened 3.23 points or 0.08% to 3,894.48 and Hang Seng declined 243.05 points or 0.93% to 25,852.00.