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Domestic indices magnify gains; Nifty touches 25,700 mark
Sep-20-2024

Domestic equity indices magnified their gains and were trading higher by over one percent in late morning deals as market participants indulged in enlarging their positions. Nifty touched 25,700 mark, while Sensex gained around 1000 points. Hectic buying in JSW Steel, Mahindra & Mahindra, Maruti Suzuki, Larsen & Toubro and Tata Steel companies stocks’ helped markets to magnify their gains. Positive cues from the global markets supported domestic sentiments. The U.S. Federal Reserve's significant interest rate cut and hopes for a soft landing for the U.S. economy, have increased risk appetite in global markets. Traders also got support as S&P Global India said that India is set to become the world’s third-largest economy by 2030–31. The country is forecast to grow at an annual rate of 6.7 per cent.

On the global front, Asian markets were trading mostly in green following strong cues from the US markets over night.  Traders took note of report that the Bank of Japan kept its benchmark interest rate steady at around 0.25% - the highest rate since 2008 - at the conclusion of a two-day meeting Friday. Back home, all the BSE sectoral indices were trading in green led by Metal, Capital Goods, Industrials, Auto and PSU. 

The BSE Sensex is currently trading at 84168.62, up by 983.82 points or 1.18% after trading in a range of 83187.64 and 84240.50. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index up by 1.11%.

The top gaining sectoral indices on the BSE were Metal up by 2.25%, Capital Goods up by 1.84%, Industrials up by 1.68%, Auto up by 1.67% and PSU up by 1.32%, while there were no losers.

The top gainers on the Sensex were JSW Steel up by 3.84%, Mahindra & Mahindra up by 3.83%, Maruti Suzuki up by 2.55%, Larsen & Toubro up by 2.38% and Tata Steel up by 2.24%. On the flip side, TCS down by 0.37%, Axis Bank down by 0.15% and NTPC down by 0.12% were the few losers.

Meanwhile, Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi has said that India and South Korea have started sharing the bill of lading in an electronic transfer mode between the customs of both sides, a move that will help promote ease of doing business. A bill of lading is a legal document that serves as a receipt, contract, and proof of ownership for shipped goods. He said as and when the system becomes a norm for all the countries, there will be no requirement for physical submission of records. 

Sarangi noted that South Korea is a key trading partner of India and both countries have implemented a comprehensive free trade agreement in 2010. India's exports to the country stood at $6.41 billion in 2023-23, while imports aggregated at $21.13 billion. He said that doing away with physical submissions may happen in the next 1-1.5 years. The United Nations Commission on International Trade Law (UNCITRAL) has taken this initiative to ensure that all trade documentations happen through the electronic transfer mode and that work is under progress as various countries are participating. He also said a lot of startups are working in the direction of ensuring tracking and tracing of goods and containers on real-time basis.

He further said ‘each of the containers coming into our country is RFID tagged and the movement is tracked on real time basis and going forward enabling IoT (internet of things) and ensuring that these containers movement is tracked from origin till it is shipped and beyond outside our shores also is something which is a work in progress’. The DGFT has taken a series of measures to ensure ease of doing business for exporters and importers. It has recently launched the Trade Connect e-Platform, which is a one-stop shop for traders to get information related to all areas such as duties, markets, and free trade agreements.

The CNX Nifty is currently trading at 25694.70, up by 278.90 points or 1.10% after trading in a range of 25426.60 and 25725.60. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.86%, JSW Steel up by 3.72%, Coal India up by 3.30%, Eicher Motors up by 2.80% and Maruti Suzuki up by 2.80%. On the flip side, Cipla down by 0.68%, Grasim Industries down by 0.61%, TCS down by 0.33%, Axis Bank down by 0.27% and NTPC down by 0.21% were the top losers.

Asian markets were trading mostly higher; Hang Seng advanced 179.25 points or 0.99% to 18,192.41, KOSPI increased 15.12 points or 0.58% to 2,595.92, Nikkei 225 surged 546.51 points or 1.45% to 37,701.84 and Taiwan Weighted added 102.67 points or 0.46% to 22,145.36. However, Jakarta Composite plunged 113.21 points or 1.45% to 7,792.18, Shanghai Composite weakened 12.97 points or 0.48% to 2,723.05 and Straits Times fell 16.95 points or 0.47% to 3,616.23. 
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