Sensex, Nifty trade with traction in early deals on healthy buying

Indian equity benchmarks made positive start on Tuesday tracking strong global cues. Sensex and Nifty soon gained traction and are trading in fine fettle with gains of around half a percent each in early deals on account of healthy buying in IT and Banking counters after previous session’s choppiness. Some support came as latest data released by the Reserve Bank of India showed that net foreign direct investment (FDI) during the April-June period of the current financial year was $6.9 billion, compared to $4.7 billion in the year-ago period. The increase was due to an improvement in gross inward FDI, which grew by 26.4 per cent year-on-year (Y-o-Y) to $22.5 billion during Q1 of 2024-25. Besides, data released by the Reserve Bank of India (RBI) showed overseas Indians deposited around $4 billion in non-resident Indian (NRI) deposit schemes in April - June FY25, up 79 per cent over the amount deposited in these schemes in the same period last year. 

On the global front, Asian markets are trading mixed as the People's Bank of China kept its benchmark loan prime rate unchanged following a surprise cut in July. Investors also assessed minutes from the Reserve Bank of Australia's August meeting and looked ahead to the release of FOMC meeting minutes and Fed Chair Jerome Powell's Jackson Hole Speech for clues on the pace and timing of interest-rate cuts. Back home, metal & mining sector stocks are in focus as Fitch Ratings said Indian metal and mining companies' operating costs are likely to rise significantly if state governments impose additional mining taxes in the wake of a Supreme Court ruling. In stock specific development, IndusInd Bank traded higher after RBI nod for mutual fund business.

The BSE Sensex is currently trading at 80770.02, up by 345.34 points or 0.43% after trading in a range of 80517.95 and 80794.98. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were IT up by 0.85%, Bankex up by 0.61%, TECK up by 0.51%, Energy up by 0.43% and Utilities up by 0.42%, while Capital Goods down by 0.15% and Consumer Durables down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.54%, TCS up by 1.39%, Ultratech Cement up by 1.18%, Axis Bank up by 1.09% and Bajaj Finserv up by 0.93%. On the flip side, Bharti Airtel down by 0.99%, Tata Steel down by 0.45%, JSW Steel down by 0.28%, HCL Technologies down by 0.25% and Adani Ports & SEZ down by 0.22% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has issued the framework for the recognition of Self-Regulatory Organisations in financial markets. The framework was introduced given the potential role of Self-Regulatory Organisations (SROs) in strengthening compliance culture among their members and also providing a consultative platform for policy-making. The framework is specified into broad parameters - objectives, responsibilities, eligibility criteria, membership, governance standards and application process for the recognition of SROs in financial markets. Interested entities seeking recognition as an SRO in financial markets may submit their application through email or to the Chief General Manager, Financial Markets Regulation Department, Reserve Bank of India, Central Office.

RBI said SROs can play a vital role in this direction by proactively developing and ensuring adoption and adherence to industry standards and best practices by its members in the financial markets. An SRO is expected to operate with credibility, objectivity and responsibility under the oversight of the regulator, to maintain integrity, ensure professionalism, promote ethical conduct and improve regulatory compliance for healthy and sustainable development of the financial markets.

The primary responsibility of the SRO towards its members would be to promote best business practices. In general, the SRO is expected to be an ally of the Reserve Bank in ensuring better compliance with regulatory guidelines, the development of the financial markets, the protection of stakeholder interests, fostering innovation and the detection of early warning signals.

The CNX Nifty is currently trading at 24688.00, up by 115.35 points or 0.47% after trading in a range of 24607.20 and 24688.10. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.17%, SBI Life Insurance up by 1.88%, Hero MotoCorp up by 1.61%, Indusind Bank up by 1.54% and TCS up by 1.34%. On the flip side, ONGC down by 1.61%, Bharti Airtel down by 1.00%, Cipla down by 0.35%, Tata Steel down by 0.31% and HCL Technologies down by 0.24% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 833.11 points or 2.18% to 38,221.73, Jakarta Composite gained 57.15 points or 0.76% to 7,523.98, KOSPI increased 22.41 points or 0.83% to 2,696.77 and Straits Times rose 19.98 points or 0.59% to 3,375.54. On the other hand, Hang Seng declined 63.23 points or 0.36% to 17,506.34, Shanghai Composite weakened 28.49 points or 0.99% to 2,865.18 and Taiwan Weighted was down by 5.52 points or 0.02% to 22,404.11.