Benchmarks trim losses in late afternoon session

Indian equity benchmarks trimmed some of their losses in late afternoon session, but continued to trade below the neutral lines. Cautiousness remained in the markets ahead of Index of Industrial Production (IIP) data, which is scheduled to be announced post market hours. Adding some worries on the street with a private report that India's GDP will contract by 3 percent in FY21 because of the coronavirus pandemic, assuming the economy is opened up fully from next month. It also said the RBI will monetise the fiscal deficit through purchase of government bonds of up to $95 billion through open market operations, and its revaluation reserves of $127 billion may also be used to recapitalise state-run banks. The market participants failed to take support, amid government has launched the Rewa Ultra Mega Solar Power project to the Nation. It is Asia's largest power project. The Rewa project will make the entire region a major hub for pure and clean energy in this decade.
On the global front, European markets were trading higher despite spiking coronavirus cases in the U.S. will derail the global recovery.

The BSE Sensex is currently trading at 36591.80, down by 145.89 points or 0.40% after trading in a range of 36401.11 and 36748.89. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.71%, while Small cap index was down by 0.53%.

The top gaining sectoral indices on the BSE were Energy up by 2.10%, Healthcare up by 0.64%, Telecom up by 0.44%, FMCG up by 0.37% and Realty was up by 0.33%, while Bankex down by 2.04%, Consumer Durables down by 1.72%, Metal down by 1.00%, Basic Materials down by 0.99% and Utilities was down by 0.99% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.87%, Sun Pharma up by 2.74%, Hindustan Unilever up by 1.64%, Bharti Airtel up by 0.69% and Power Grid up by 0.58%. On the flip side, Indusind Bank down by 3.32%, Axis Bank down by 2.99%, Titan Company down by 2.92%, HDFC down by 2.77% and ICICI Bank down by 2.71% were the top losers.

Meanwhile, the government has launched the Rewa Ultra Mega Solar Power project to the Nation. It is Asia's largest power project. The Rewa project will make the entire region a major hub for pure and clean energy in this decade. The Rewa project comprises three solar generating units of 250 MW each located on a 500 hectare plot of land situated inside a Solar Park (total area 1500 hectare).

Madhya Pradesh would be the main centre of Solar Energy in India, as such major projects are in progress in  Neemuch, Shajapur, Chattarpur and Omkareshwar. The biggest beneficiaries of this would be the poor, the middle class, the tribals, the farmers of Madhya Pradesh.

It will also supply power to the Delhi Metro, along with the entire region surrounding Rewa. Meanwhile, the Government is working towards making environment, air, water also to remain pure and this thinking is also reflected in the policy and strategy on solar energy.

The CNX Nifty is currently trading at 10754.65, down by 58.80 points or 0.54% after trading in a range of 10713.00 and 10819.40. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.78%, Sun Pharma up by 2.27%, Hindustan Unilever up by 1.53%, Britannia up by 1.05% and Bharti Airtel up by 0.78%. On the flip side, Indusind Bank down by 3.43%, Axis Bank down by 3.15%, Titan Company down by 3.01%, HDFC down by 2.97% and GAIL India down by 2.89% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 22.56 points or 0.37% to 6,072.18, France’s CAC increased 7.76 points or 0.16% to 4,928.77 and Germany’s DAX was up by 46.69 points or 0.37% to 12,536.15.