Equity indices add some more points in late afternoon deals

Frontline equity indices have added some more points in late afternoon deals. Both Sensex and Nifty were trading above 44,450 and 13,000 marks, respectively. Sentiments remained upbeat after Care rating in its latest report has said that the Indian economy is expected to throw up better numbers in the September quarter (Q2) with GDP contraction of 9.9 per cent, as against 24 per cent in Q1 at the onset of the pandemic. In the first contraction since 1980, the economy shrank a full 23.9 per cent in the first quarter of the fiscal after the whole nation was put under a strict lockdown. The agency said ‘We expect GDP to contract 9.9 per cent in the second quarter, and for the full year to March by 8.2 per cent’. Sector wise, Banking sector remained in focus, after S&P Global Ratings said that Non-performing loans in the Indian banking sector is likely to witness an uptick and may shoot up to 11 per cent of gross loans in the next 12-18 months.

On the global front, Asian markets are trading mostly in green, as vaccine successes add to the global risk-on mood. European markets were trading higher amid growing optimism that another effective coronavirus vaccine has been discovered, and on news that the Trump administration has accepted President-elect Joe Biden's transition into office.

The BSE Sensex is currently trading at 44479.89, up by 402.74 points or 0.91% after trading in a range of 44247.12 and 44524.36. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.57%, while Small cap index was up by 0.73%.

The top gaining sectoral indices on the BSE were Auto up by 2.18%, Realty up by 2.02%, Bankex up by 1.81%, Consumer Discretionary up by 1.25% and Healthcare was up by 1.05%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 4.49%, HDFC Bank up by 3.17%, Axis Bank up by 3.11%, ITC up by 2.52% and Maruti Suzuki up by 2.16%. On the flip side, Titan Company down by 1.17%, HDFC down by 1.11%, Indusind Bank down by 0.93%, Ultratech Cement down by 0.76% and Bharti Airtel down by 0.43% were the top losers.

Meanwhile, with an aim to make India an attractive investment destination, Union Finance Minister Nirmala Sitharaman has said that the momentum of reforms will continue in the future as well. She also said ‘All enterprises, MNCs and India Inc., big, medium and small enterprises, are facing a reset exercise in doing business. We will have to make sure that policies are right to make India an attractive investment destination.’

While talking about initiatives, the Finance Minister said that the reforms announced by the government under the ambit of the Aatmanirbhar Bharat Package have opened up many sectors including niche sectors such as Nuclear Energy and Space for the foreign investors to partake in. Moreover, it needs to be kept in mind that the underlying tenet of the marquee package is not about excluding India from the globe, but making it an integral part of the global value chains by improving its domestic competitiveness.

Besides, Sitharaman noted that the Government has been working assiduously towards ensuring a facilitative environment for the MNCs operating out of India, adding that Prime Minister has not lost the opportunity for deep reforms, even during the coronavirus crisis and the reforms momentum would continue.

The CNX Nifty is currently trading at 13056.30, up by 129.85 points or 1.00% after trading in a range of 12978.00 and 13059.05. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 5.28%, Mahindra & Mahindra up by 4.37%, Eicher Motors up by 3.52%, HDFC Bank up by 3.39% and Axis Bank up by 3.39%. On the flip side, Titan Company down by 1.56%, Shree Cement down by 1.34%, HDFC down by 1.02%, Ultratech Cement down by 0.89% and Indusind Bank down by 0.67% were the top losers.

Asian markets are trading mostly in green, Nikkei 225 surged 638.22 points or 2.5% to 26,165.59, Hang Seng increased 102.00 points or 0.39% to 26,588.20, Jakarta Composite soared 48.27 points or 0.85% to 5,701.03, Straits Times advanced 28.37 points or 1% to 2,877.15 and KOSPI was up by 15.17 points or 0.58% to 2,617.76. On the flip side, Shanghai Composite declined 11.67 points or 0.34% to 3,402.82 and Taiwan Weighted was down by 70.88 points or 0.51% to 13,807.13.

European markets were trading higher, UK’s FTSE 100 increased 40.63 points or 0.64% to 6,374.47, France’s CAC increased 49.69 points or 0.9% to 5,541.84 and Germany’s DAX was up by 94.54 points or 0.72% to 13,221.51.