Benchmarks trade in green with volatility in late afternoon session

Indian equity indices were struggling for direction and were trading in green with marginal gains in late afternoon session as buying in IT heavyweights offset losses in metal, realty and FMCG stocks amid fresh Iran-U.S. tensions with Tehran announcing closure of Strait of Hormuz. Tensions between U.S. and Iran escalated over the weekend as Tehran expanded strikes in Qatar and United Arab Emirates (UAE) amid fresh U.S. attacks on Iranian targets. However, investors’ sentiment improved, with market participants selectively accumulating stocks amid corporate earnings announcements. Traders took note of report that India and New Zealand have elevated their ties to a strategic partnership and set a five-year target to double their annual bilateral trade in goods and services to Rs 35,000 crore by 2030.

On the global front, Asian markets traded mixed after the U.S. carried out airstrikes and Iran retaliated. Among Asian markets, South Korea’s KOSPI plunged over 9%, as a renewed selloff in heavyweight semiconductor stocks deepened concerns over artificial intelligence valuations and the outlook for memory-chip earnings. European markets recovered and traded in green after opening mostly in red as investors remained cautious amid renewed geopolitical tensions in the Middle East.

The BSE Sensex is currently trading at 77716.40, up by 147.01 points or 0.19% after trading in a range of 76857.43 and 77789.29. There were 13 stocks advancing against 17 stocks declining on the index.

The top gaining sectoral indices on the BSE were IT up by 3.78%, TECK up by 2.01%, Consumer Durables up by 0.67%, Auto up by 0.47% and Utilities up by 0.36%, while FMCG down by 0.77%, Capital Goods down by 0.73%, Metal down by 0.60%, Basic Materials down by 0.50% and Telecom down by 0.49% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 5.59%, HCL Technologies up by 5.54%, Infosys up by 3.38%, Tech Mahindra up by 3.36% and Kotak Mahindra Bank up by 1.72%. On the flip side, Tata Steel down by 1.94%, Interglobe Aviation down by 1.32%, Eternal down by 1.02%, Maruti Suzuki India down by 0.99% and Bharat Electronics down by 0.98% were the top losers.

Meanwhile, with an aim to promote the circular economy, the Material Recycling Association of India (MRAI) has recommended the government to abolish the 2.5 per cent import duty on aluminium scrap. It said the proposed measure would reduce input costs for recyclers and downstream manufacturers, thereby enhancing their global competitiveness.

Highlighting heavy dependence on overseas supplies, the industry body noted that nearly 80 -85 per cent of India's aluminium scrap needs are met through imports. It said making uninterrupted access to imported scrap is indispensable for sustaining domestic manufacturing and the growth of the recycling industry.

MRAI also pointed out that aluminium scrap remains the only major base metal scrap that continues to attract import duty in India, whereas copper, zinc and lead scrap have already been exempted. The body said countries such as Thailand, Malaysia, Indonesia, Japan and South Korea permit duty-free imports of aluminium scrap, giving their recycling industries a significant cost advantage.

The CNX Nifty is currently trading at 24237.30, up by 30.40 points or 0.13% after trading in a range of 24000.20 and 24259.80. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were TCS up by 5.57%, HCL Technologies up by 5.32%, Tech Mahindra up by 3.57%, Infosys up by 3.36% and Bajaj Auto up by 2.36%. On the flip side, Nestle India down by 2.12%, Tata Steel down by 2.00%, Grasim Industries down by 1.68%, Interglobe Aviation down by 1.44% and Tata Consumer Prod. down by 1.39% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 1198.73 points or 1.78% to 67,359.00, KOSPI dropped 669.01 points or 9.83% to 6,806.93, Shanghai Composite weakened 82.63 points or 2.11% to 3,913.53 and Straits Times fell 7 points or 0.13% to 5,462.29. On the other hand, Jakarta Composite rose 32.12 points or 0.54% to 5,956.48, Taiwan Weighted gained 25.91 points or 0.06% to 45,380.52 and Hang Seng was up by 8.88 points or 0.04% to 24,184.00.

European markets were trading higher; Germany’s DAX rose 40.31 points or 0.16% to 25,107.40, France’s CAC added 4.03 points or 0.05% to 8,343.00 and UK’s FTSE 100 was up by 0.71 points or 0.01% to 10,498.00.