Benchmarks continue to trade higher in late afternoon session

Indian equity Markets continued to trade higher in late afternoon session on Friday, tracking a rally in global markets.  Meanwhile, the broader markets kept up their outperformance, with the BSE MidCap and SmallCap indexes trading in range of 1.05% - 1.85%. Sentiments remained upbeat with a private report that Russia is looking for a partnership with India for producing the Covid-19 vaccine Sputnik V. Russian Direct Investment Fund (RDIF) is likely to do phase 3 clinical trials in Russia, UAE, Saudi Arabia, Brazil and Philippines. Traders took note of Employees' Provident Fund Organisation in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 65,5311 new jobs in the month of June 2020 as against revised figure of 17,2174 in May 2020. On the sectoral front, traders were seen piling up position in power, utilities, PSU, realty and basic materials, while selling was witnessed in TECK, telecom and IT. On the global front, Asian markets were trading higher following the tech-driven rally overnight on US markets and on reports that China and the US have agreed to hold new trade talks in the coming days. Encouraging reports on the coronavirus vaccine front also lifted investors’ sentiment. European markets were trading mostly in green seemingly shrugging off disappointing economic data out of the euro zone, while geopolitical tensions remain in focus.

Back home, the BSE Sensex is currently trading at 38513.27, up by 292.88 points or 0.77% after trading in a range of 38435.70 and 38579.83. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.08%, while Small cap index up by 1.83%.

The top gaining sectoral indices on the BSE were Power up by 3.57%, Utilities up by 3.43%, PSU up by 2.03%, Realty up by 1.73% and Basic Materials up by 1.28%, while TECK down by 0.29%, Telecom down by 0.20% and IT down by 0.14% were the few losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.44%, Power Grid up by 4.89%, Nestle up by 2.85%, Asian Paints up by 2.68% and HDFC Bank up by 2.49%. On the flip side, Infosys down by 0.53%, HCL Tech down by 0.42%, Bharti Airtel down by 0.42%, Larsen & Toubro down by 0.22% and Reliance Industries was down by 0.15% were the top losers.

Meanwhile, the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 65,5311 new jobs in the month of June 2020 as against revised figure of 17,2174 in May 2020.

As per the report, the maximum jobs were created in the age bracket of 22-25 and in this bracket the top sectors which have created more fresh jobs include Expert Services; Trading - Commercial Establishments; establishment engaged in manufacture, marketing servicing, usage of computers; Electric-Mechanical-or General Engineering Products; Engineers- Engineering Contractors; Building & Construction Industry; Financing Establishment and Hospitals. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Karnataka, Gujarat, Tamil Nadu, Delhi and Haryana.

According to the data report, 6044 new jobs were created in less than 18 age group category, while 15,0493 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 15,6339, 86,952, 13,2755 and 12,2728 new payrolls, respectively in June 2020.

The CNX Nifty is currently trading at 11398.15, up by 85.95 points or 0.76% after trading in a range of 11375.65 and 11418.50. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were NTPC up by 5.54%, Power Grid up by 4.69%, Asian Paints up by 2.81%, Nestle up by 2.81% and HDFC Bank up by 2.45%. On the flip side, Zee Entertainment down by 3.94%, Hindalco down by 1.06%, Infosys down by 0.64%, HCL Tech down by 0.57% and Bharti Airtel down by 0.50% were the top losers.

Asian markets were trading higher; Shanghai Composite rose 16.78 points or 0.50% to 3,380.68, Taiwan Weighted strengthened 245.20 points or 1.98% to 12,607.84, Hang Seng increased 322.45 points or 1.30% to 25,113.84, Straits Times advanced 2.94 points or 0.12% to 2,530.86, Nikkei 225 surged 39.68 points or 0.17% to 22,920.30 and KOSPI was up by 30.37 points or 1.34% to 2,304.59.

European markets were trading mostly in green; France’s CAC rose 9.65 points or 0.2% to 4,920.89 and Germany’s DAX gained 45.03 points or 0.35% to 12,890.83, while UK’s FTSE 100 dropped 16.67 points or 0.28% to 5,996.67.