Equity markets extend gains in late afternoon session

Indian equity markets extended their gains in late afternoon session, with the Sensex and the Nifty gaining above 200 and 30 points, respectively. Local investors cheered after Niti Aayog vice chairman Rajiv Kumar has said that the government is committed to improving the ease of doing business and innovation ecosystem where every school student has access to the innovative tools and trends. He also said the Indian economy will be among the top economies in the world in the next few years using science, technology, and innovation in all the sectors, bouncing back soon from the after-effects of coronavirus disease (covid-19) pandemic. Traders took note of businesses with up to Rs 5 crore turnover would need to file only eight returns (four GSTR-3B and four GSTR-1 returns) in a year from January onward instead of twelve at present. The Quarterly filing of Return with Monthly Payment (QRMP) Scheme would impact almost 94 lakh taxpayers, about 92 percent of the total tax base of the goods and services tax (GST).

On the global front, Asian markets were trading mostly in red as investors struggled to balance hopes for more economic stimulus and vaccines with fresh concerns about a surge in COVID-19 infections. European markets were trading lower as talks between the U.K. and EU continue to yield little progress, ostensibly and time is running out to agree on a deal.

The BSE Sensex is currently trading at 45633.89, up by 206.92 points or 0.46% after trading in a range of 45335.17 and 45728.85. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.17%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were Energy up by 1.52%, IT up by 0.97%, TECK up by 0.75%, Realty up by 0.67% and Bankex was up by 0.08%, while Metal down by 1.05%, Power down by 0.85%, Industrials down by 0.80%, Utilities down by 0.77% and Capital Goods was down by 0.71% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.99%, Reliance Industries up by 2.29%, TCS up by 1.72%, Infosys up by 1.04% and SBI up by 0.80%. On the flip side, Indusind Bank down by 1.88%, Sun Pharma down by 1.72%, Asian Paints down by 1.54%, Tech Mahindra down by 1.24% and NTPC down by 1.00% were the top losers.

Meanwhile, underlining growth of IT and communications sectors, Union Minister Ravi Shankar Prasad has said foreign investments and innovations are welcome but at the same time, the government is focussed on promoting Indian innovation as well as keen on the country's safety and security.

The IT and Telecom Minister noted that IT and communications sectors have registered over 7 per cent growth and received one of the highest Foreign Direct Investment (FDI) even during the challenging time of COVID-19. He emphasised that digital technologies have to be safe so that ‘vested interests, extremists may not abuse it’ and added that they must also be sustainable.

Besides, Prasad said the government is focussed on ensuring that an enabling atmosphere is available for Indian minds to help create a robust 4G network as the ‘precursor’ of the 5G network.

The CNX Nifty is currently trading at 13396.50, up by 40.75 points or 0.31% after trading in a range of 13311.05 and 13435.45. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.85%, Reliance Industries up by 2.26%, TCS up by 1.69%, Infosys up by 0.99% and SBI up by 0.87%. On the flip side, Hindalco down by 2.47%, Adani Ports down by 2.44%, Indusind Bank down by 1.90%, Coal India down by 1.90% and Sun Pharma down by 1.84% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 202.29 points or 0.76% to 26,304.56, Nikkei 225 slipped 80.36 points or 0.3% to 26,467.08, KOSPI fell 44.51 points or 1.62% to 2,700.93, Shanghai Composite declined 6.42 points or 0.19% to 3,410.18 and Straits Times was down by 0.13 points or 0% to 2,825.38. On the flip side, Jakarta Composite soared 13.65 points or 0.23% to 5,944.41and Taiwan Weighted was up by103.80 points or 0.73% to 14,360.40.

European markets were trading lower, UK’s FTSE 100 decreased 7.63 points or 0.12% to 6,547.76, France’s CAC decreased 8.98 points or 0.16% to 5,564.40 and Germany’s DAX was down by 6.01 points or 0.05% to 13,264.99.