Equity indices extend gains in late afternoon session

Frontline equity indices added some more points in late afternoon session and were trading with gains of above a percent. The broader indices, BSE Mid cap index and Small cap index trading above half a percent. Traders remain energized after ICRA in its latest report has said that non-banking finance companies (NBFCs) have witnessed a good rise in loan collection efficiencies in Q2 (July- September) of FY21 after the reverses in the first three months of the fiscal. It noted that the build-up in provisions will help NBFCs against incremental uncertainties. It added that such bodies are carrying about 50 percent higher provisions at 3.1 percent of the assets under management (AUM) as against 2 percent in the year-ago period. Adding some optimistic, Finance Minister Nirmala Sitharaman’s statement that India will not worry about missing its budget deficit target as it seeks to step up spending to support the economy.

On the global front, Asian markets were trading mostly in green as investors cheered news that the White House had put forward a fresh stimulus proposal of more than $900 billion (RM3.6 trillion), lifting hopes US lawmakers could pass a deal before Christmas. European markets were trading higher as market focus in the region remains firmly on the progress of post-Brexit trade deal talks between the EU and U.K.

The BSE Sensex is currently trading at 46102.16, up by 493.65 points or 1.08% after trading in a range of 45792.01 and 46127.23. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.65%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were Realty up by 1.85%, Bankex up by 1.51%, Energy up by 1.50%, IT up by 1.30% and TECK was up by 1.24%, while there were no losers on the BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.30%, HDFC Bank up by 2.13%, Axis Bank up by 2.10%, Infosys up by 2.09% and ITC up by 1.85%. On the flip side, HDFC down by 0.48%, Tata Steel down by 0.42%, Maruti Suzuki down by 0.38%, Ultratech Cement down by 0.27% and Bajaj Auto down by 0.08% were the top losers.

Meanwhile, praising efforts of Indian companies to develop 5G technologies locally, Defence Secretary Ajay Kumar has expressed hope that the country can become an important player by the time 6G services are introduced. He also invited all technology players to participate in the development of defence technologies. he said ‘from a national perspective, what is important is that India today has embarked on a journey where it is creating its own technologies in 5G and who knows by the time 6G comes, India could be a significant player in the technology arena for communications’.

He pointed out that some countries have already started working on 6G technology. he said ‘for the first time India is developing its own technologies for 5G and I am very proud to know that several of Indian players today have created parts and sub-systems, components, technologies which will comprise nearly 10-20 per cent of the technologies required in the 5G ecosystem. Recently I also heard that Jio is coming in a big way in 5G technology. I welcome all these players’. The government has also announced an incentive of Rs 12,195 crore for manufacturing of telecom equipment locally.

Kumar said the growth being witnessed in the electronic hardware space has dwarfed the target set under the National Policy on Electronics. He further said 5G comes as an opportunity for Indian developers and promoters where they can create apps and solutions that can be used by the developing world. He pointed out a ‘Made in India' solution will be ‘cost efficient, affordable and pervasive and highly customised’ for the developing nations. He said ‘in defence today increasingly technology has a greater role to play. Under our mission for 'Aatmanirbhar Bharat', we are giving a huge amount of emphasis to private industry in this sector’. He added there are huge opportunities for software companies and start-ups to participate in the defence sector as weaponry and equipment are getting digitised and use of unmanned technologies are increasing by the day.

The CNX Nifty is currently trading at 13531.05, up by 138.10 points or 1.03% after trading in a range of 13449.60 and 13538.10. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were UPL up by 3.83%, Indian Oil up by 3.02%, Kotak Mahindra Bank up by 2.34%, HDFC Bank up by 2.13% and Infosys up by 2.10%. On the flip side, Hindalco down by 1.49%, Shree Cement down by 0.90%, Wipro down by 0.54%, HDFC down by 0.52% and Ultratech Cement down by 0.42% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 350.86 points or 1.33% to 26,817.94, Hang Seng increased 198.28 points or 0.75% to 26,502.84, KOSPI rose 54.54 points or 2.02% to 2,755.47, Taiwan Weighted strengthened 29.74 points or 0.21% to 14,390.14 and Straits Times was up by 21.59 points or 0.76% to 2,847.22. On the flip side, Shanghai Composite was down by 38.22 points or 1.12% to 3,371.96.

European markets were trading higher; UK’s FTSE 100 increased 54.29 points or 0.83% to 6,613.11, France’s CAC increased 35.17 points or 0.63% to 5,595.84 and Germany’s DAX was up by 147.19 points or 1.11% to 13,425.68.