Bears were holding a tight grip over the Dalal Street in today deals, with both Sensex and Nifty close lower, on the back of negative cues from other Asian markets. Selling across all the sectoral indices except Telecom kept markets down, with Axis Bank falling the most on the BSE. Traders overlooked a private report stating that Indian consumer price inflation slowed in October to 6.73% on weaker food price rises and a strong base one year ago but remained stubbornly well above the 6% upper limit of the Reserve Bank of India’s tolerance band. Meanwhile, another private report stated that the government may soon introduce changes to the capital tax regime, making it simpler.
Nifty futures opened at 18110.00 points against the previous close of 18216.80 and opened at a low of 18030.00 points. Nifty Future closed with an average movement of 119.90 points and a decline of around 118.95 points and 18097.85 points…!!
On the NSE, the midcap 100 index will decline 1.16% and smallcap 100 index is closing decline 1.15%. Speaking of various sectoral indices, Auto, PSU Bank and Consumer Durables stocks saw heavy selling on the NSE, while all other sectoral indices also closed lower.
At the start of intra-day trading, October gold opened at Rs.51541, fell from a high of Rs.51674 points to a low of Rs.51481 with a rise of 80 points, a trend of around Rs.51586 and December Silver opened at Rs.61360, fell from a high of Rs.61607 points to a low of Rs.61136, with a decline of 141 points, a trend of around Rs.61420.
Meanwhile, giving a strong signal of the country’s commitment to a low-carbon economy, Union Minister for Finance & Corporate Affairs Nirmala Sitharaman has approved the final Sovereign Green Bonds framework of India. This approval will further strengthen India’s commitment towards its Nationally Determined Contribution (NDCs) targets, adopted under the Paris Agreement, and help in attracting global and domestic investments in eligible green projects. The proceeds generated from issuance of such bonds will be deployed in Public Sector projects which help in reducing carbon intensity of the economy.
The Framework comes close on the footsteps of India’s commitments under ‘Panchamrit’ as elucidated by the Prime Minister, Narendra Modi, at COP26 at Glasgow in November, 2021. The approval is fulfillment of the announcement in the Union Budget FY 2022-23 by the Union Finance Minister that Sovereign Green Bonds will be issued for mobilising resources for green projects.
Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects. By virtue of their indication towards environmental sustainability, green bonds command a relatively lower cost of capital vis-a-vis regular bonds and necessitates credibility and commitments associated with the process of raising bonds. In the above context, India’s first Sovereign Green Bonds framework was formulated and as per the provisions of the framework, Green Finance Working Committee (GFWC) was constituted to validate key decisions on issuance of Sovereign Green Bonds.
Technically, the important key resistances are placed in Nifty future are at 18188 levels, which could offer for the market on the higher side. Sustainability above this zone would signal opens the door for a directional up move with immediate resistances seen at 18202 – 18232 levels. Immediate support is placed at 18008 – 17808 levels.