Domestic indices magnify gains in afternoon session

Domestic equity indices magnified their gains and were trading higher by over 0.70% in afternoon deals as market participants indulged in enlarging their positions. Hectic buying in HDFC Bank, Tech Mahindra, Larsen & Toubro, Infosys and ITC helped the markets to extend their gains. Sentiments got boost as the data from the Central Board of Direct Taxes (CBDT) has showed that India’s net direct tax collection for the financial year 2024-25 has seen a significant surge, with an increase of 18.35 per cent to almost Rs 11.26 lakh crore year on year, as of October 10. Traders overlooked report that India’s wholesale inflation accelerated to 1.84 per cent in September on an annual basis, as against 1.31 per cent in August due to surge in food prices. On the BSE sectoral front, traders were seen pilling up positions in Realty, Bankex, Telecom, Consumer Durables and TECK, while selling was witnessed in Basic Materials, Oil & Gas and Healthcare. 

On the global front, Asian markets were mostly trading mostly in green amid investors assessed China’s weekend press briefing and awaited a slew of economic data this week from the region. China’s Minister of Finance Lan Fo’an in a highly anticipated press briefing on Saturday hinted at more debt issuance amid efforts to shore up the economy, stating the government had a rather large space to increase deficit. In the stock specific development, Wipro surged as the company's board will mull over the bonus issue proposal in a meeting on October 16, to October 17, 2024.

The BSE Sensex is currently trading at 82023.93, up by 642.57 points or 0.79% after trading in a range of 81541.20 and 82040.12. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.05%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were Realty up by 1.32%, Bankex up by 0.96%, Telecom up by 0.90%, Consumer Durables up by 0.85% and TECK up by 0.85%, while Basic Materials down by 0.19%, Oil & Gas down by 0.10% and Healthcare down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.25%, HDFC Bank up by 2.02%, Larsen & Toubro up by 1.89%, Infosys up by 1.40% and ITC up by 1.39%. On the flip side, Maruti Suzuki down by 1.51%, Ultratech Cement down by 1.07%, Bajaj Finance down by 0.98%, Tata Steel down by 0.62% and Nestle down by 0.42% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the European Union's (EU) deforestation regulation and carbon tax are unfair and would impact Indian industries. He said the EU's safeguard measures on some steel products are irrational too. He noted that Indian industries are confronted with unfair rules of deforestation, rules around CBAM (Carbon Border Adjustment Mechanism) and various other measures. Major agriculture-exporting countries, including Brazil, India, Indonesia and the US, have raised objections to the EU Deforestation Regulation (EUDR).

Goyal said the EUDR was adopted on May 16, 2023, and seeks to prevent the import of specified goods contributing to deforestation and forest degradation in the EU market. The covered products include coffee, leather, oil cake, wood furniture, paper, and paperboard, with plans to expand the product list further. However, the regulation has faced significant backlash from several major trading partners. He said the developed world is taking such measures by ‘disrespecting’ the multilateral agreements on climate change. He added that in the Paris Agreement it was decided that the developed world -- which in the first place is responsible for the environmental problems of the world -- will contribute to the low-cost, long-term financing and will also provide grants and technology. But, COP 21 (Paris Climate Conference) premise is sought to be demolished by the EU.

The minister stated that on the issue of imposing safeguard duty measures, which are irrational duties and totally against the MFN (most favoured nation) laws of WTO (World Trade Organization) on certain steel products, India is discussing the matter for the last 5-6 years now. He said ‘I have been holding back, I have been negotiating and requesting ...India does not have unfair trade practices, now should we be subject to that additional duty? Now after six years, we have to take other measures.’ He also said ‘those measures are not going to be conducive for the kind of good relations that we believe Europe and India share and should continue to share at the business level’. Such issues and others like labour matters can best be addressed through bilateral discussions. 

The CNX Nifty is currently trading at 25147.25, up by 183.00 points or 0.73% after trading in a range of 25017.50 and 25150.20. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.57%, Tech Mahindra up by 2.20%, HDFC Bank up by 1.95%, Larsen & Toubro up by 1.90% and HDFC Life Insurance up by 1.79%. On the flip side, Maruti Suzuki down by 1.56%, Ultratech Cement down by 1.11%, Bajaj Finance down by 0.97%, Cipla down by 0.82% and SBI Life Insurance down by 0.72% were the top losers.

Asian markets are trading mostly in green; Jakarta Composite gained 32.96 points or 0.44% to 7,553.56, Shanghai Composite strengthened 57.7 points or 1.79% to 3,275.44, Straits Times rose 18.39 points or 0.51% to 3,592.15, KOSPI increased 24.59 points or 0.95% to 2,621.50 and Taiwan Weighted added 73.65 points or 0.32% to 22,975.29. However, Hang Seng declined 29.61 points or 0.14% to 21,222.37.