Domestic indices add more points in late morning deals

Indian equity markets added more points and were trading higher by over quarter percent in late morning deals as market participants indulged in enlarging their positions. Buying in Power Grid, Tata Motors, Maruti Suzuki, TCS and Infosys helped the markets to magnify their gains. Traders were getting some encouragement as Union Commerce and Industry Minister Piyush Goyal said India's growth story will take the country's $3.5 trillion economy now to $35 trillion in the next 25 years.  Traders overlooked State Bank of India’s report said that India could see a shift in foreign direct investment (FDI) trends in the second term of Donald Trump (Trump 2.0) as President of the United States. The report highlighted that under his first term Trump 1.0, the Trump administration made sweeping regulatory changes aimed at attracting investments back to the U.S., which impacted FDI inflows globally including India. It added that if similar policies are reintroduced in Trump 2.0 also, it could create challenges for emerging markets like India, which rely on FDI as a significant driver of economic growth. On the BSE sectoral front, traders were seen polling up positions in IT, TECK, Utilities, Telecom and Realty, while selling was witnessed in Basic Materials, Metal, Industrials, Energy and Oil & Gas. 

On the global front, Asian markets were trading mostly in red after China’s latest stimulus measures underwhelmed, prompting concerns over the recovery in the world’s second-largest economy. Back home, in the stock specific development, Asian Paints dropped after reporting a weak set of numbers for the second quarter ended September 2024 (Q2FY25). 

The BSE Sensex is currently trading at 79775.51, up by 289.19 points or 0.36% after trading in a range of 79001.34 and 79883.42. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.25%, while Small cap index down by 0.38%.

The top gaining sectoral indices on the BSE were IT up by 1.06%, TECK up by 1.05%, Utilities up by 0.66%, Telecom up by 0.63% and Realty up by 0.62%, while Basic Materials down by 0.63%, Metal down by 0.55%, Industrials down by 0.38%, Energy down by 0.27% and Oil & Gas down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 3.37%, Tata Motors up by 1.94%, Maruti Suzuki up by 1.55%, TCS up by 1.49% and Infosys up by 1.25%. On the flip side, Asian Paints down by 7.58%, Tata Steel down by 1.05%, Adani Ports down by 1.00%, Mahindra & Mahindra down by 0.98% and JSW Steel down by 0.56% were the top losers.

Meanwhile, the Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) Director General Raghuveer Kini has said that chemical export target of $31 billion for 2024-25 (FY25) will be achieved, as there is a healthy demand for 'made in India' chemicals in countries like Brazil, the US, Japan and Saudi Arabia.

Kini said that the total exports of chemicals during April-September rose by 4.57 per cent to $14.1 billion. He stated ‘So far, we are registering good growth, and we are confident of achieving the $31 billion target this fiscal. Last year, it was around $30 billion.’ He added ‘Last year, because of drought in Brazil, which is the key market for us, exports were down. But this year, the situation is good, and we expect high growth.’ 

Further, he said that the council is holding awareness programmes for exporters about the preparedness of the European Union's carbon tax and quality control orders. He said The EU's carbon tax is a reality, and we have to be prepared for that. Exporters should not be caught unaware. We are explaining the paperwork required to deal with this tax.’ The EU's Carbon Border Adjustment Mechanism or CBAM is its unilateral measure, which India is opposing strongly. CBAM is a kind of import duty that will apply to energy-intensive goods imported into the European Union. It has decided to impose a carbon tax from January 1, 2026, on seven carbon-intensive sectors, including steel, cement, chemicals, and fertiliser. 

Besides, Kini said there has been a rising demand for chemicals globally by end-user industries like pharmaceuticals, agriculture, and manufacturing. He stated Indian chemicals have gained popularity in overseas markets due to their improved quality and adherence to international standards such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and other regulations.

The CNX Nifty is currently trading at 24234.30, up by 86.10 points or 0.36% after trading in a range of 24004.60 and 24267.65. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 3.48%, Trent up by 2.09%, Tata Motors up by 1.94%, Britannia up by 1.77% and Maruti Suzuki up by 1.57%. On the flip side, Asian Paints down by 7.57%, Cipla down by 1.42%, Tata Steel down by 1.04%, Adani Ports down by 0.92% and Mahindra & Mahindra down by 0.90% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 439.2 points or 2.16% to 20,288.99, Jakarta Composite plunged 73.45 points or 1.01% to 7,213.74, Shanghai Composite weakened 2.6 points or 0.08% to 3,449.70, Straits Times fell 3.1 points or 0.08% to 3,721.27, KOSPI dropped 28.65 points or 1.12% to 2,532.50 and Taiwan Weighted lost 131.71 points or 0.56% to 23,422.18. However, Nikkei 225 surged 4.02 points or 0.01% to 39,504.39.