Domestic equity indices continued to witness gains and were trading higher by over half percent in late morning deals as market participants indulged in enlarging their positions. Hectic buying in SBI, Tata Steel, Bharat Electronics, Titan and Ultratech Cement companies’ stocks helped the markets to trade above their crucial 25,850 (Nifty) and 84,000 (Sensex) levels. Sentiments got boost as India and United States of America (US) have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade. Positive cues from the global markets also supported domestic sentiments. The sentiments were further supported by Indian rupee appreciating 25 paise to 90.40 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.     

On the global front, Asian markets were trading higher with Japanese market jumping to a record high after Japan Prime Minister Sanae Takaichi won a landmark election victory. Back home, most of the sectoral indices were trading in green led by Metal, Realty, Basic Materials, Consumer Durables and PSU on the BSE. 

The BSE Sensex is currently trading at 84055.79, up by 475.39 points or 0.57% after trading in a range of 83860.42 and 84314.68. There were 19 stocks advancing against 11 stocks declining on the index.

The top gaining sectoral indices on the BSE were Metal up by 2.44%, Realty up by 2.32%, Basic Materials up by 2.06%, Consumer Durables up by 1.96% and PSU up by 1.91%, while FMCG down by 0.03% was the only losing index on BSE.

The top gainers on the Sensex were SBI up by 6.69%, Tata Steel up by 3.93%, Bharat Electronics up by 2.19%, Titan up by 1.65% and Ultratech Cement up by 1.45%. On the flip side, Power Grid down by 1.06%, ITC down by 0.84%, ICICI Bank down by 0.63%, Bajaj Finance down by 0.37% and Axis Bank down by 0.35% were the top losers.

Meanwhile, against a backdrop of concern over the impact of artificial intelligence (AI) on employment, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said that AI adoption is expected to have a net positive effect on employment. However, she said there will be a churn as some jobs get lost, and managing transition to the new technology is the real policy challenge. 

RBI Deputy Governor said that the RBI’s recent survey on AI impact on productivity and employment indicated that there is no negative effect as of now. She said certainly on the productivity side, survey shows good numbers to high numbers. On employment, she noted that while the evidence is or even hypothetically is difficult to talk about, but whatever surveys have been done, whether internationally or domestically in India, as of today is showing a net positive effect. 

She further said as with any new technology, there is a churning that happens, and stressing that the net employment effect because of AI has so far been positive. She said 'the churning is if some people lose jobs and others gain. And so then the challenge lies in transition'. She added that the skills and labour markets will have to transition towards the faster growing segments. 

The CNX Nifty is currently trading at 25858.40, up by 164.70 points or 0.64% after trading in a range of 25780.90 and 25922.25. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were SBI up by 6.76%, Tata Steel up by 4.00%, Hindalco up by 2.88%, Shriram Finance up by 2.35% and Grasim Industries up by 2.27%. On the flip side, Max Healthcare Inst down by 1.83%, Power Grid down by 1.01%, Nestle down by 0.75%, ITC down by 0.74% and ICICI Bank down by 0.58% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 2431.32 points or 4.48% to 56,685.00, Taiwan Weighted added 668.67 points or 2.06% to 32,451.59, Jakarta Composite gained 77.56 points or 0.97% to 8,012.82, Shanghai Composite strengthened 50.03 points or 1.22% to 4,115.61, KOSPI increased 197.98 points or 3.74% to 5,287.12, Hang Seng advanced 399.05 points or 1.48% to 26,959.00 and Straits Times rose 29.58 points or 0.6% to 4,963.99.