Equity markets continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, following a drop in crude oil prices and recovery in global markets amid hopes that the conflict in West Asia could conclude soon. Traders took support with Commerce and Industry Minister Piyush Goyal stating that the nine free trade agreements (FTAs) finalised by India in the last four years will provide huge business opportunities for the domestic pharma and healthcare sectors. Some support also came as the Reserve Bank of India (RBI) injected Rs 50,000 crore into the banking system by purchasing government securities through Open Market Operations (OMO). Sector-wise, power stocks remained in watch as Union Minister Shripad Naik said the country's inter-regional transmission capacity will be increased to 143 GW by 2027 and 168 GW by 2032 to ensure reliable power flow across the regions. On the global front, Asian markets were trading higher as crude oil prices slumped on signs of possible easing oil sanctions and comments from U.S. President Donald Trump that the Iran war could be short-lived.

The BSE Sensex is currently trading at 78017.40, up by 451.24 points or 0.58% after trading in a range of 77745.47 and 78526.25. There were 19 stocks advancing against 11 stocks declining on the index.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.52%, Auto up by 1.51%, Bankex up by 1.31%, Consumer Discretionary up by 1.12% and Power up by 1.09%, while TECK down by 0.52%, IT down by 0.45%, Energy down by 0.15% and Oil & Gas down by 0.07% were the few losing indices on BSE.

The top gainers on the Sensex were Interglobe Aviation up by 3.32%, Mahindra & Mahindra up by 2.36%, Ultratech Cement up by 2.32%, Asian Paints up by 1.64% and ICICI Bank up by 1.61%. On the flip side, Infosys down by 1.26%, Tech Mahindra down by 0.69%, ITC down by 0.64%, Reliance Industries down by 0.63% and Bharti Airtel down by 0.59% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has injected Rs 50,000 crore into the banking system by purchasing government securities through Open Market Operations (OMO). Under this, the central bank purchased several bonds with different maturity periods. The RBI bought 6.33 per cent GS (Government Security) 2035 bonds worth Rs 13,507 crore, 6.01 per cent GS 2030 worth Rs 13,494 crore, 6.10 per cent GS 2031 of Rs 8,157 crore, 7.30 per cent GS 2053 of Rs 6,955 crore, 7.18 per cent GS 2033 worth Rs 4,479 crore, 6.92 per cent GS 2039 of Rs 2,304 crore, and 6.19 per cent GS 2034 of Rs 1,104 crore.

At present, the liquidity in the banking system is estimated to be in surplus of around Rs 2.41 lakh crore. The OMO purchase auction was announced ahead of expected heavy outflows from the banking system on account of advance tax and Goods and Services Tax (GST) payments scheduled later this month. 

According to RBI data, the central bank has infused around Rs 2.50 lakh crore into the banking system through OMO purchases of government securities so far since the start of this calendar year.

The CNX Nifty is currently trading at 24169.00, up by 140.95 points or 0.59% after trading in a range of 24079.95 and 24303.80. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Shriram Finance up by 4.79%, Interglobe Aviation up by 3.36%, Mahindra & Mahindra up by 2.48%, Ultratech Cement up by 2.43% and Dr. Reddy's Lab up by 2.14%. On the flip side, Infosys down by 1.25%, Hindalco down by 0.78%, Tech Mahindra down by 0.72%, ITC down by 0.60% and Reliance Industries down by 0.60% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 1103.28 points or 2.05% to 53,832.00, Taiwan Weighted added 593.29 points or 1.81% to 32,703.71, Jakarta Composite gained 46.5 points or 0.63% to 7,383.87, Shanghai Composite strengthened 16.02 points or 0.39% to 4,112.62, KOSPI increased 222.24 points or 4.06% to 5,474.11, Hang Seng advanced 379.54 points or 1.47% to 25,788.00 and Straits Times rose 68.73 points or 1.42% to 4,825.34.