Markets continue to trade in high spirit

Indian equity benchmarks continued to trade in high spirit in afternoon session, tracking positive global cues amid hopes of additional fiscal stimulus in the United States and optimism about an economic recovery. Sentiments were also upbeat as Central Board of Indirect Taxes & Customs (CBIC) introduced liberalised Authorised Economic Operator package for micro, small and medium enterprises (MSMEs) for swift customs clearances. In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry. Currently, Sensex and Nifty were trading above 48,500 and 14,250 levels due to heavy buying in auto, IT and TECK stocks. Gains in frontline blue chip stocks such as Maruti Suzuki, Power Grid and Tech Mahindra also helped lift the markets.

On the global front, Asian markets were trading mostly higher following another record-breaking performance on Wall Street as investors set their sights on a further huge US stimulus after Democrats took control of Congress. Back home, the BSE Sensex is currently trading at 48543.40, up by 450.08 points or 0.94% after trading in a range of 48365.58 and 48580.01. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index jumped 0.99%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were Auto up by 2.57%, IT up by 2.20%, TECK up by 2.00%, Realty up by 1.96%, Consumer Discretionary was up by 1.76%, while Telecom was down by 0.10% was the only losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.96%, Power Grid up by 3.27%, Tech Mahindra up by 3.23%, Sun Pharma up by 2.87% and Mahindra & Mahindra was up by 2.81%. On the flip side, HDFC down by 1.05%, Bharti Airtel down by 0.50%, ICICI Bank down by 0.35%, Nestle down by 0.21% and Axis Bank was down by 0.16% were the top losers.

Meanwhile, maintaining stable outlook for the Indian road sector, rating agency ICRA in its latest report has said that in FY22, the traffic is expected to increase by 5 percent and toll rates (WPI linked) by 3-4 percent resulting in an overall increase in toll collections by 14-15 percent on a low base in FY21 (given the impact of toll suspension in first 20 days of April 2020).

According to the report, toll collections witnessed a marked improvement on the back of increased movement of both passenger and commercial vehicles, which has picked up significantly over the last three months, thereby surpassing the pre-COVID-19 levels. It also said on an average, the increase in toll collections in September - November 2020 stood at around 13 percent, implying a growth of 8-9 percent in traffic in terms of passenger car units (PCUs); one-third of this growth is contributed by the passenger vehicle category and the remaining from commercial vehicles.

The report further said that strong liquidity buffers and quick recovery in traffic have arrested major slippages in the credit profile of toll road assets. It also said few state annuity projects with weaker counterparty credit profile suffered due to elongation in annuity payment cycle, thereby resulting in a stretched liquidity position. 

The CNX Nifty is currently trading at 14287.80, up by 150.45 points or 1.06% after trading in a range of 14221.65 and 14291.70. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 5.23%, UPL up by 4.03%, Wipro up by 3.90%, SBI Life Insurance up by 3.87% and Tech Mahindra was up by 3.45%. On the flip side, Hindalco down by 1.81%, HDFC down by 0.99%, Tata Steel down by 0.53%, Bharti Airtel down by 0.49% and GAIL India was down by 0.34% were the top losers.

Asian markets were trading mostly higher, KOSPI rose 120.50 points or 3.97% to 3,152.18, Taiwan Weighted strengthened 249.95 points or 1.64% to 15,463.95, Jakarta Composite soared 115.95 points or 1.88% to 6,269.58, Straits Times advanced 71.40 points or 2.46% to 2,978.37, Nikkei 225 surged 648.90 points or 2.36% to 28,139.03 and Hang Seng was up by 333.32 points or 1.21% to 27,881.84. On the flip side, Shanghai Composite declined 21.46 points or 0.6% to 3,554.74.