Sensex, Nifty hold strong gains in late morning deals

15 Jul 2020 Evaluate

Indian equity benchmarks continued to hold their strong gains in late morning session, on the back of positive cues from other Asian markets. In line with the larger peers, the broader indices were too maintaining their gaining momentum in late morning deals. Domestic sentiments were positive, even after former RBI governor Raghuram Rajan said non-performing assets of the banking sector are likely to witness unprecedented increase in the next six months and the sooner the problem is recognised the better it would be. The outbreak of COVID-19 and subsequent lockdown to curb the spread of disease has hit businesses hard and many of them are facing difficulty in servicing debt.

On the global front, Asian markets were trading mostly in green, after the Bank of Japan maintained its massive monetary policy stimulus on Wednesday as the economy is expected to contract more sharply in the current financial year due to the challenges posed by the novel coronavirus. The Policy Board of the BoJ voted 8-1 to retain the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.

The BSE Sensex is currently trading at 36772.68, up by 739.62 points or 2.05% after trading in a range of 36297.65 and 36810.25. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.95%, while Small cap index was up by 1.23%.

The top gaining sectoral indices on the BSE were IT up by 4.99%, TECK up by 3.71%, Energy up by 2.42%, Bankex up by 2.05% and Metal up by 1.44%, while Telecom down by 1.07% and Realty down by 0.24% were the only losing indices on BSE.

The top gainers on the Sensex were Infosys up by 6.28%, Axis Bank up by 4.55%, HCL Tech up by 4.43%, Tech Mahindra up by 3.80% and Reliance Industries up by 2.99%. On the flip side, Bharti Airtel down by 1.37%, Nestle down by 0.50% and Asian Paints down by 0.40% were the top losers.

Meanwhile, with an aim to improve industrial development, Commerce and Industry Minister Piyush Goyal has said that the government is working in DPIIT (Department for Promotion of Industry and Internal Trade) on creating a ‘genuine’ single window clearance mechanism and mapping the entire land bank available for the industry and industrial development. He also said that the government is looking at ways to promote manufacturing of electronic products like LED televisions, CCTVs and is ‘very keen’ to have a semiconductor FAB plant in India. Besides, to capture IT services exports data, the ministry is thinking of creating a framework by which it can capture that data.

Goyal said that he has tasked the officers to look at some framework by which the ministry can capture data of IT services exports. He also said that sufficient land is available and ‘we can make sure that it is available at competitive prices, we can even talk to states’. He added that states can be consulted on issues like affordable power and water supply if the electronics industry wants to set up an entire ecosystem in a state. He said ‘Talk to DPIIT, pick up an area of your choice, where the entire ecosystem can be created and supported and we are willing to go that extra mile whatever it takes to create such a cluster of industry and it should be world-class’.

Regarding the demand of export incentives under MEIS (merchandise exports from India scheme), he said ‘the ministry is working on Remission of Duties or Taxes on Export Product (RoDTEP), so I do not know whether MEIS can really sustain or continue beyond December 2020 or when RoDTEP come to your industry’. He said that no industry can sustain in the long run on ‘these clutches’ and industries which are not dependent on the government are flourishing. The success of IT, BPO and software is largely because they remain free of government intervention and ‘to my mind that is what we should gradually move and push towards in the electronics sector also’.

The CNX Nifty is currently trading at 10813.25, up by 205.90 points or 1.94% after trading in a range of 10683.45 and 10827.45. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Wipro up by 15.24%, Infosys up by 6.22%, Axis Bank up by 4.74%, HCL Tech up by 4.05% and Tech Mahindra up by 3.68%. On the flip side, Zee Entertainment down by 1.71%, Bharti Airtel down by 1.42%, Eicher Motors down by 1.27%, Asian Paints down by 0.62% and Nestle down by 0.62% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 327.71 points or 1.45% to 22,914.72, Straits Times advanced 26.48 points or 1.01% to 2,646.67, KOSPI rose 16.67 points or 0.76% to 2,200.28 and Jakarta Composite soared 5.96 points or 0.12% to 5,085.08. On the flip side, Taiwan Weighted dropped 18.42 points or 0.15% to 12,190.59, Shanghai Composite declined 47.41 points or 1.39% to 3,367.21 and Hang Seng decreased 140.55 points or 0.55% to 25,337.34.

Sensex, Nifty hold strong gains in late morning deals

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