Domestic indices trade in green in late morning deals

Domestic indices were trading in green in late morning deals on account of buying in IT industry related stocks namely Infosys, Tech Mahindra and HCL. Meanwhile, broader indices were also trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.10-0.40%. Falling crude oil prices and rising buying by FIIs supported domestic sentiments. Traders took a note of report that Finance Minister Nirmala Sitharaman said the GST council next month will discuss rationalisation of tax rates but a final decision on tweaking taxes and slabs will be taken later. She also said that compensation cess on luxury and sin goods are also going to be discussed and can come up in the September 9 meeting or later. On the BSE sectoral front, traders were seen pilling up positions in IT, TECK, Telecom, Healthcare and PSU, while selling was witnessed in Realty, FMCG, Metal, Bankex and Basic Materials.

On the global front, Asian markets were trading mostly in red despite positive cues from the US markets overnight. Traders were cautious and awaiting the release of key US inflation report later in the week, which could impact expectations for how quickly the US Fed will cut interest rates. Back home, in the stock specific development, Zydus Lifesciences soared after the company received regulatory drug approval from the United States Food and Drug Administration (USFDA). The company bagged authorisation to market Amantadine extended-release capsules, 68.5 mg, and tentative approval for 137 mg. The drug is a generic copy of US reference listed drug Gocovri.  

The BSE Sensex is currently trading at 81831.09, up by 119.33 points or 0.15% after trading in a range of 81578.32 and 81895.94. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index up by 0.36%.

The top gaining sectoral indices on the BSE were IT up by 1.57%, TECK up by 1.32%, Telecom up by 0.59%, Healthcare up by 0.39% and PSU up by 0.15%, while Realty down by 0.43%, FMCG down by 0.34%, Metal down by 0.27%, Bankex down by 0.21% and Basic Materials down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.91%, Infosys up by 1.86%, Tech Mahindra up by 1.15%, HCL up by 1.06% and Mahindra & Mahindra up by 0.98%. On the flip side, Asian Paints down by 0.84%, Nestle down by 0.79%, Maruti Suzuki down by 0.79%, Axis Bank down by 0.75% and Hindustan Unilever down by 0.70% were the top losers.

Meanwhile, Indian Ambassador to Oman Amit Narang has said that discussions for the proposed free trade agreement (FTA) between India and Oman are at an advanced stage and both sides hope to conclude the pact early. He said the pact, officially known as the Comprehensive Economic Partnership Agreement (CEPA), will give a significant push to bilateral trade and investment ties between the two countries. Also, the pact is expected to boost Indian exports to the west Asian country by eliminating duties, especially on petroleum products, textiles, electronics, pharmaceuticals, machinery, and iron and steel. 

The Indian Ambassador to Oman also highlighted the significant potential for enhancing direct shipping links between the two nations as a large part of Indian exports to Oman come not directly but through the UAE. He said the India-Oman bilateral trade, which crossed $12 billion in 2022-23, has moderated and settled at $8 billion in FY24. He noted that moderation is mainly on account of over dominance of hydrocarbons in the bilateral trade.

He further said India imports a lot of oil and fertilisers from Oman and this decline in the value terms of the trade this year is a reflection of the decline in values of these two commodities globally. He pointed out that a large part of Indian exports to Oman come not directly but through the UAE and these are not reflected in the India-Oman bilateral trade but in India's trade with the UAE, adding that there is potential for enhancing direct shipping links. 

The CNX Nifty is currently trading at 25061.00, up by 43.25 points or 0.17% after trading in a range of 24964.65 and 25078.25. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were LTIMindtree up by 5.99%, Wipro up by 3.06%, Indusind Bank up by 2.04%, Infosys up by 1.83% and Bajaj Auto up by 1.56%. On the flip side, Hero MotoCorp down by 1.56%, Asian Paints down by 0.99%, Britannia down by 0.89%, Adani Enterprises down by 0.88% and Nestle down by 0.82% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 205.3 points or 1.15% to 17,669.37, Shanghai Composite weakened 16.73 points or 0.59% to 2,832.00, Straits Times fell 7.9 points or 0.23% to 3,390.57 and KOSPI dropped 5.61 points or 0.21% to 2,683.64. However, Nikkei 225 surged 24.59 points or 0.06% to 38,313.21, Taiwan Weighted added 181.37 points or 0.82% to 22,366.37 and Jakarta Composite gained 27.95 points or 0.37% to 7,625.83.