Benchmarks extend gains in morning session

Indian equity bourses added gains in morning session tracking strong global markets. The BSE Sensex rose over 600 points, while NSE Nifty traded above 11850 mark. After a positive start, markets extended their gains to trade higher. BSE Mid cap and Small cap are also trading with strong gains. Healthy buying was observed in blue-chip stocks like Hero MotoCorp, ITC, HDFC Bank and Ultratech Cement. Sentiments remained upbeat as banks credit and deposits grew 7.21 per cent and 9.51 per cent to Rs 100.05 lakh crore and Rs 131.26 lakh crore, respectively, according to the latest Reserve Bank data. In the year-ago fortnight, banks advance stood at Rs 93.32 lakh crore, while deposits at Rs 119.85 lakh crore. Traders took note of report that amid slowing GDP growth and rising inflation, the Reserve Bank of India (RBI) will unveil its last monetary policy for the current financial year on Thursday.

Global cues too remained supportive with all of the Asian markets were trading in green, as investors gauge efforts to contain the coronavirus and awaited potential responses from policy makers. Back home, steel sector stocks trading in green despite ratings agency India Ratings and Research (Ind-Ra) revised its outlook on the steel sector to 'stable-to-negative' for the remainder of the ongoing fiscal due to sluggish steel demand growth expectations.

The BSE Sensex is currently trading at 40511.83, up by 639.52 points or 1.60% after trading in a range of 40117.46 and 40516.32. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.13%, while Small cap index was up by 1.21%.

The top gaining sectoral indices on the BSE were Energy up by 2.25%, Metal up by 1.85%, Basic Materials up by 1.65%, Capital Goods up by 1.50% and Oil & Gas was up by 1.42%, while there were no loosing indices on the BSE sectoral front.

The top gainers on the Sensex were Hero MotoCorp up by 3.47%, HDFC Bank up by 2.75%, Reliance Industries up by 2.60%, ITC up by 2.38% and Ultratech Cement up by 2.21%. On the flip side, Bharti Airtel down by 0.28% and Indusind Bank down by 0.04% were the only losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said the money raised through disinvestment will be used to develop infrastructure. This will have multiplier effect on the economy and not bridging revenue deficit. The government set an ambitious disinvestment target of Rs 2.10 lakh crore for the next financial year (FY21), which includes selling stake in BPCL and insurance behemoth Life Insurance Corporation of India (LIC).

Sitharaman mentioned ‘we are showing the direction. We are telling you where the money is going to be spent so that you can plan your investments and your investments and your expansion well in alignment with what government does... you will facilitate the government and we will equally facilitate the private sector.’

Besides, citing an example, she said import of those medical equipment which are not made in India will come at a duty, but duty collected will be utilised to fund creating medical infrastructure in aspirational districts where there are not good hospitals. She said when the government puts money infrastructure, it has cascading effect and give rise to economic activity.

The CNX Nifty is currently trading at 11894.60, up by 186.70 points or 1.59% after trading in a range of 11783.40 and 11895.70. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.63%, HDFC Bank up by 2.75%, Reliance Industries up by 2.67%, Bajaj Finserv up by 2.64% and ICICI Bank up by 2.62%. On the flip side, Yes Bank down by 3.33%, Eicher Motors down by 0.86% and Bharti Airtel down by 0.40% were the few losers.

All Asian markets are trading higher; Hang Seng increased 277.87 points or 1.05% to 26,634.85, Taiwan Weighted strengthened 213.48 points or 1.88% to 11,568.40, Nikkei 225 surged 97.69 points or 0.43% to 23,069.63, Jakarta Composite soared 40.23 points or 0.68% to 5,924.40, Straits Times advanced 37.80 points or 1.21% to 3,154.11, KOSPI rose 36.74 points or 1.73% to 2,155.62 and Shanghai Composite was up by 5.83 points or 0.21% to 2,752.44.