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Benchmark equity indices continued their northward journey in afternoon on sustained buying activities in index heavyweights - Maruti Suzuki, Larsen & Toubro and Mahindra & Mahindra. Sentiments were upbeat as commerce and industry ministry said that total foreign direct investment (FDI) into India rose 2 per cent to the ‘highest ever’ $83.57 billion in 2021-22 on account of various measures like policy reforms and ease of doing business taken by the government. Total FDI comprises equity inflows, reinvested earnings and other capital. In 2020-21, the inflow stood at $81.97 billion. It was $74.39 billion in 2019-20 and $62 billion in 2018-19. Traders were getting comfort with private report starting that the Union government’s move to cut excise duty on petrol and diesel by Rs 8 and Rs 6 a litre, respectively, is likely to ease the retail inflation rate by up to 25 basis points (bps) from June onwards. Traders were buying auto, capital goods and consumer discretionary stocks, while selling was seen in metals, basic materials and oil & gas stocks. On the global front, Asian markets were trading mixed as inflation fears and concerns about low economic growth weighed on markets.

The BSE Sensex is currently trading at 54778.36, up by 451.97 points or 0.83% after trading in a range of 54191.55 and 54826.77. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.86%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Auto up by 2.27%, Capital Goods up by 1.88%, Consumer Discretionary up by 1.48%, Bankex up by 1.42% and Industrials was up by 1.40%, while Metal down by 7.32%, Basic Materials down by 2.80%, Oil & Gas down by 0.68%, Energy down by 0.59% and Utilities was down by 0.19% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.53%, Larsen & Toubro up by 2.85%, Mahindra & Mahindra up by 2.75%, Nestle up by 2.75% and Hindustan Unilever was up by 2.39%. On the flip side, Tata Steel down by 11.73%, ITC down by 1.93%, Power Grid down by 1.24%, Ultratech Cement down by 0.44% and Reliance Industries was down by 0.22% were the top losers.

Meanwhile, Indian Steel Association (ISA) has said that the imposition of export duties on steel products will send a negative signal to investors and adversely impact capacity expansion projects under the PLI scheme. The body further said, steel industry in India has made the largest investment commitments ranging from 36 percent to 40 percent of total investments committed by the entire manufacturing sector. It also said these investments in capacity building are needed to achieve the Atmanirbhar Bharat Vision.

In light of this decision, the association said new capacities creation may get impacted as they would be seen as uneconomical thus affecting the much-awaited investment against PLI scheme for specialty steel. Besides, it may have a major impact on the entire supply chain in the long term. The economic activity of a few states dependent on minerals and steel will be further hit. These measures need to be deliberated and then a calibrated approach may be taken. The steel industry continues to remain committed to nation-building.

Meanwhile, the government has waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry, a move which will lower the cost for the domestic industry and reduce the prices. Also, to increase domestic availability, the duty on exports of iron ore was hiked up to 50 percent, and a few steel intermediaries to 15 percent.

The CNX Nifty is currently trading at 16377.60, up by 111.45 points or 0.69% after trading in a range of 16207.25 and 16382.50. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 4.58%, Larsen & Toubro up by 3.09%, Nestle up by 2.91%, Mahindra & Mahindra up by 2.89% and Hindustan Unilever was up by 2.53%. On the flip side, JSW Steel down by 12.10%, Tata Steel down by 11.84%, ONGC down by 4.17%, Hindalco down by 2.73% and ITC was down by 1.93% were the top losers.

Asian markets were trading mixed; Hang Seng decreased 274.70 points or 1.33% to 20,442.54, Straits Times trembled 13.74 points or 0.42% to 3,226.84, Jakarta Composite lost 76.44 points or 1.1% to 6,841.70 and Shanghai Composite was down by 3.65 points or 0.12% to 3,142.92.

On the flip side, Nikkei 225 surged 262.49 points or 0.98% to 27,001.52, Taiwan Weighted strengthened 11.56 points or 0.07% to 16,156.41 and KOSPI was up 8.09 points or 0.31% to 2,647.38.

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