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Markets trade firm in early deals; All eyes on Economic Survey
Jan-31-2025

Indian equities made an optimistic start on Friday tracking firm global cues. Markets soon gained traction and are trading higher with gains of around half a percent each in early deals. All eyes are on Economic Survey 2025, which is set to be released later in the day, providing a comprehensive review of India's economic performance over the past financial year. The report, published a day before the Union Budget, will outline key trends in sectors such as agriculture, industry, and services while suggesting policy measures to address economic challenges and drive growth. 

On the global front, Asian markets are trading mostly higher on Friday, following the positive cues from Wall Street overnight, with markets in China, Hong Kong and Taiwan closed for Lunar New Year. The markets are also reacting positively to some domestic economic data from Japan and Australia. The markets are gaining from heavy buying in the tech space and firm metal prices that are pushing up mining stocks.

Back home, sugar industry stocks are in focus as Union Minister Nitin Gadkari said the sugar industry has the potential to increase its share in the GDP to 3 per cent from the current 1-1.15 per cent, and emphasised on the need to raise per acre production of sugarcane. In stock specific development, Larsen & Toubro leading the gainers on the bourses as it reported a 14 percent rise in quarterly net profit.

The BSE Sensex is currently trading at 77078.98, up by 319.17 points or 0.42% after trading in a range of 76833.87 and 77102.61. There were 23 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.91%, while Small cap index was up by 0.91%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.82%, Industrials up by 2.36%, Power up by 1.50%, Consumer Durables up by 1.34% and IT up by 1.13%, while Telecom down by 1.07%, Bankex down by 0.20% and Metal down by 0.16% were the few losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.85%, Titan Company up by 2.34%, Power Grid up by 1.93%, Infosys up by 1.77% and Maruti Suzuki up by 1.68%. On the flip side, ITC Hotels down by 4.98%, Bharti Airtel down by 3.30%, ICICI Bank down by 0.69%, Bajaj Finserv down by 0.56% and NTPC down by 0.53% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has tightened norms for imposing monetary penalties and compounding offences under the Payment and Settlement Systems Act (PSS Act) to rationalise and consolidate enforcement action by the central bank. As per the revised framework for payment system operators and Banks, operation of a payment system without authorisation, disclosure of information, which is prohibited, and failure to pay the penalty imposed by the Reserve Bank within the stipulated period are among the contraventions under the PSS Act.

The 'Framework for imposing monetary penalty and compounding of offences under the Payment and Settlement Systems Act, 2007 said ‘(The) Reserve Bank is empowered to impose a penalty not exceeding Rs 10 lakh or twice the amount involved in such contravention or default where such amount is quantifiable, whichever is more, in case of contraventions/defaults...’. Earlier, the RBI was empowered to impose a penalty not exceeding Rs 5 lakh. The amount was raised following the enactment of the Jan Vishwas (Amendment of Provisions) Act, 2023, which came into force on January 22, 2024.

In cases where such contravention or default is a continuing one, a further penalty of up to Rs 25,000 for every day after the first, during which the contravention or default continues, can also be imposed. The PSS Act empowers an officer of the Reserve Bank duly authorised by it on this behalf to compound contraventions, not being an offence punishable with imprisonment only or with imprisonment and fine. The RBI further said only material contraventions will be taken up for enforcement action in the form of imposition of monetary penalty or compounding of offences. The framework also provides procedures for imposing monetary penalties and determining the amount of penalty.

The CNX Nifty is currently trading at 23377.80, up by 128.30 points or 0.55% after trading in a range of 23277.40 and 23378.55. There were 43 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 3.95%, Trent up by 3.41%, Tata Consumer Products up by 2.91%, Titan Company up by 2.66% and Bharat Electronics up by 2.30%. On the flip side, Bharti Airtel down by 3.17%, Coal India down by 1.27%, ICICI Bank down by 0.78%, Bajaj Finserv down by 0.70% and NTPC down by 0.57% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 137.08 points or 0.35% to 39,651.05, Jakarta Composite gained 75.2 points or 1.05% to 7,148.68 and Straits Times rose 58.24 points or 1.51% to 3,859.31. On the other hand, KOSPI was down by 33.18 points or 1.33% to 2,503.62.
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