Benchmarks continue to trade higher in morning deals

Key benchmark indices continued their trade in green in the morning session on sustained buying, with the Sensex moving over the 38,550 and the Nifty above 11,350 marks. Trading sentiments remained optimistic with Commerce and Industry Minister Piyush Goyal’s statement that the government is opening up the economy for greater participation of the private sector and has been working in different ways to remove entry barriers for new investments. He said the government has opened up defence manufacturing for the domestic industry in a much bigger way and coal mining for commercial engagement. Additional support also came with the RBI’s report stated that India's external debt stood at $554.5 billion at end-June, recording a decrease of $3.9 billion over its level at the end of March 2020. A sharp appreciation in the rupee against the US dollar added to the momentum. Indian rupee is currently trading at 73.41 against the US dollar, registering a surge of 34 paise over its previous close. However, there was some cautiousness too as the government’s fiscal deficit remained above the annual target for second month in row at the end of August, mainly on account of the impact of lockdown on revenue collections. According to the data released by the Controller General of Accounts (CGA), fiscal deficit during April-August was at 109.3% of the annual target estimated in the Budget.

On the global front, Asian markets were trading mostly in green, as Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi said they will continue talks on a new coronavirus stimulus bill. Back home, on the sectoral front, stocks related to banking sector were trading higher despite rating agency ICRA revised down its credit growth outlook for banks to 2-3 percent for the current fiscal, and said the coronavirus pandemic-driven stress may leave 3.1-3.7 percent of assets into bad loan list by March. Earlier, it had forecast credit growth for banks at 6-7 percent.

The BSE Sensex is currently trading at 38590.37, up by 522.44 points or 1.37% after trading in a range of 38410.20 and 38609.19. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.75%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Bankex up by 2.48%, Realty up by 1.95%, Auto up by 1.86%, Telecom up by 1.84% and Metal up by 1.70%, while Consumer Durables down by 0.19% and Oil & Gas down by 0.08% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 7.68%, Indusind Bank up by 4.94%, Bajaj Finance up by 4.36%, Bajaj Finserv up by 3.30% and Axis Bank up by 3.13%. On the flip side, ONGC down by 1.88% and Titan Company down by 0.62% were the only losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said the government is opening up the economy for greater participation of the private sector and has been working in different ways to remove entry barriers for new investments. He said the government has opened up defence manufacturing for the domestic industry in a much bigger way and coal mining for commercial engagement.

It has also made a number of changes in single brand retailing to promote new businesses, the minister said adding the other sectors where steps have been taken include civil aviation, agriculture and financial services.

Goyal also said reforms in the agriculture sector will increase the productivity and income of farmers. About railways, he said during September 1-29, 15 per cent more freight was carried as compared to the corresponding period of last year.

The CNX Nifty is currently trading at 11384.30, up by 136.75 points or 1.22% after trading in a range of 11347.05 and 11398.95. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 7.14%, Indusind Bank up by 4.70%, Bajaj Finance up by 4.20%, Bajaj Finserv up by 3.29% and ICICI Bank up by 3.10%. On the flip side, ONGC down by 1.88%, Dr. Reddys Lab down by 1.35%, Britannia Industries down by 0.82%, Titan Co down by 0.67% and BPCL down by 0.65% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite soared 49.07 points or 1.01% to 4,919.11 and Straits Times advanced 30.89 points or 1.25% to 2,497.51, while Nikkei 225 slipped 0.19 points to 23,184.93.