Markets trade in positive territory in late afternoon session

Key benchmark indices added some more points in late afternoon session. Traders were seen piling up positions in IT, TECK and Bankex sector while selling was witnessed in Metal, Energy and Auto sector stocks. Traders took support after Minister of State for Finance Anurag Thakur has said the central government is making efforts to turn India into a manufacturing and export powerhouse. Thakur said manufacturing will now be broad-based in the country. He said ‘we are expanding the domestic manufacturing base and diversifying international trade.’ Sector wise, airline industry remained in focus, as ratings agency ICRA in its latest report has said that the domestic aviation industry's net losses may reduce to Rs 14,600 crore from an estimated a net loss of Rs 21,000 crore this fiscal (FY21) with around 57 per cent growth expected in revenue in FY22 on the back of a likely higher passenger traffic. However, the ratings agency has maintained its 'negative' credit outlook on the Indian aviation industry. 

On the global front, Asian markets were trading mostly in green. European markets were trading mostly in red as investors monitored the coronavirus pandemic and the imposition of further restrictions, along with a U.S. Senate runoff election in Georgia.

The BSE Sensex is currently trading at 48351.53, up by 174.73 points or 0.36% after trading in a range of 47903.38 and 48354.75. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.95%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were IT up by 1.42%, TECK up by 1.22%, Bankex up by 1.01%, Telecom up by 0.60% and Consumer Discretionary was up by 0.38%, while Metal down by 1.48%, Energy down by 0.90%, Auto down by 0.49%, PSU down by 0.41% and Basic Materials was down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 5.78%, HDFC up by 2.16%, Indusind Bank up by 1.91%, TCS up by 1.87% and HCL Tech up by 1.33%. On the flip side, Bajaj Finance down by 2.23%, ONGC down by 1.81%, Mahindra & Mahindra down by 1.50%, NTPC down by 1.41% and Bajaj Finserv down by 1.29% were the top losers.

Meanwhile, in order to meet the GST compensation shortfall, the Ministry of Finance has released the 10th weekly instalment of Rs 6,000 crore to the States. Out of this, an amount of Rs 5,516.60 crore has been released to 23 States and an amount of Rs 483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Now, more than 50 percent of the estimated GST compensation shortfall has been released to the States & UT with Legislative Assembly. The amount released this week was the 10th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 4.1526%. So far, an amount of Rs 60,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.6892%.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources.

The CNX Nifty is currently trading at 14169.00, up by 36.10 points or 0.26% after trading in a range of 14048.15 and 14172.40. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 5.65%, Wipro up by 2.84%, HDFC up by 2.19%, Indusind Bank up by 2.14% and HDFC Life Insurance up by 1.97%. On the flip side, Bajaj Finance down by 2.15%, Hindalco down by 2.08%, JSW Steel down by 1.92%, ONGC down by 1.81% and Tata Steel down by 1.80% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 177.05 points or 0.64% to 27,649.86, Taiwan Weighted strengthened 98.00 points or 0.66% to 15,000.03, Jakarta Composite soared 32.44 points or 0.53% to 6,137.34, KOSPI rose 46.12 points or 1.57% to 2,990.57 and Shanghai Composite was up by 25.72 points or 0.73% to 3,528.68. On the flip side, Straits Times trembled 5.92 points or 0.21% to 2,852.98 and Nikkei 225 was down by 99.75 points or 0.37% to 27,158.63.

European markets were trading mostly in red, France’s CAC decreased 11.38 points or 0.2% to 5,577.58 and Germany’s DAX was down by 10.81 points or 0.08% to 13,715.93. On the flip side, UK’s FTSE 100 was up by 26.16 points or 0.4% to 6,598.04.