Markets trim gains in morning deals

Indian equity benchmarks trimmed most of their gains but continued to trade in green in morning deals, led by gains in Metal, Realty and Basic Materials stocks. Sentiments remained positive with World Trade Organisation (WTO) stating that India has implemented several measures to facilitate trade, such as simplification of procedures and customs clearances for imports and exports. Market participants also took a note of ICRA Ratings' report that non-banking finance companies (NBFCs) are likely to see a 7-9 percent growth in their asset under management (AUM) in FY22 but access to funding would be crucial for them to have a sustained improvement. On the global front, Asian markets were trading mostly in green amid optimism over the rollout of Covid-19 vaccines, with India's mammoth vaccination drive likely to kick in from next week.

The BSE Sensex is currently trading at 48295.92, up by 121.86 points or 0.25% after trading in a range of 48271.83 and 48558.34. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.81%, while Small cap index up by 1.00%.

The top gaining sectoral indices on the BSE were Metal up by 3.05%, Realty up by 2.20%, Basic Materials up by 1.74%, Industrials up by 1.60% and Capital Goods up by 1.54%, while IT down by 0.69%, TECK down by 0.47%, FMCG down by 0.28%, Consumer Durables down by 0.26% and Healthcare down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.31%, Indusind Bank up by 2.05%, Power Grid up by 1.96%, Larsen & Toubro up by 1.95% and Axis Bank up by 1.86%. On the flip side, Titan Company down by 1.92%, TCS down by 1.15%, Hindustan Unilever down by 1.06%, Infosys down by 0.93% and Sun Pharma down by 0.69% were the top losers.

Meanwhile, the union government has allowed the employees' provident fund organisation (EPFO) to invest in public sector debt exchange traded funds (ETFs) such as Bharat Bond. The government has amended the labour ministry's notification in this regard.

The Bharat Bond ETF is a debt ETF that invests in AAA rated bonds of PSUs such as Indian Oil Corporation, Hudco among others. The ETF has a defined maturity date and easy exit options.

Four tranches of Bharat Bond ETFs have been launched so far, two in December 2019 and two in mid-2020. Bharat Bond ETF, which is a debt exchange traded fund, offered maturity options of 5 and 12 years in its second tranche, while in the first tranche, maturity options were for 3 and 10 years.

The CNX Nifty is currently trading at 14187.30, up by 41.05 points or 0.29% after trading in a range of 14182.50 and 14256.25. There were 29 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 5.42%, Hindalco up by 3.86%, Adani Ports &SEZ up by 2.83%, HDFC up by 2.24% and Larsen & Toubro up by 2.05%. On the flip side, Titan Co down by 1.85%, GAIL India down by 1.12%, TCS down by 1.10%, Infosys down by 1.03% and Hindustan Unilever down by 1.01% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 414.96 points or 1.53% to 27,470.90, Straits Times advanced 42.57 points or 1.49% to 2,905.58, KOSPI rose 76.38 points or 2.57% to 3,044.59, Shanghai Composite gained 12.97 points or 0.37% to 3,563.85, Jakarta Composite soared 73.54 points or 1.21% to 6,139.22 and Taiwan Weighted strengthened 249.33 points or 1.66% to 15,232.46.

On the flip side, Hang Seng decreased 120.35 points or 0.43% to 27,571.95.