Equity markets maintain upward momentum

Indian equity markets maintained their upward momentum in late afternoon session, following gains in Auto, IT and TECK stocks amid positive global sentiment. Traders remain energized with report that India in 2020 has been one of the biggest and fastest-growing technology markets in the world. Digital and technology adoption in India has been increasing at a steady rate over the last few years, and the current COVID-19 pandemic has accelerated the rate of technology adoption across sectors, including in high involvement services such as education and healthcare. Besides, Central Board of Indirect Taxes & Customs (CBIC) has 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. Traders overlooked National Statistical Office (NSO) in its first advanced estimates of national income has stated that gross domestic product (GDP) of India is likely to contract by a record 7.7% during 2020-21 as the COVID-19 pandemic severely hit the key manufacturing and services segments.

On the global front, Asian markets were trading mostly in green on hopes for additional economic stimulus after President-elect Joe Biden takes office. European markets were trading higher as global investors anticipate that a Democratic-controlled U.S. government will lead to greater fiscal support.

The BSE Sensex is currently trading at 48543.39, up by 450.07 points or 0.94% after trading in a range of 48365.58 and 48604.93. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.78%, while Small cap index was up by 0.72%.

The top gaining sectoral indices on the BSE were Auto up by 2.86%, IT up by 2.76%, TECK up by 2.37%, Consumer Discretionary up by 1.73% and Utilities was up by 1.62%, while Metal down by 0.76% and Telecom was down by 0.75% were the only losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 5.64%, Maruti Suzuki up by 5.36%, Mahindra & Mahindra up by 3.16%, NTPC up by 2.94% and Power Grid up by 2.77%. On the flip side, Bharti Airtel down by 1.11%, HDFC down by 1.00%, ITC down by 0.79%, SBI down by 0.56% and Titan Company down by 0.55% were the top losers.

Meanwhile, with an aim to boost exports potential of India’s agricultural and processed food products exports, Agricultural and Processed Food Products Export Development Authority (APEDA) has organized a Virtual Buyer Seller Meet (BSM) in association with Indian Embassy in Bhutan. The meet brought together key stakeholders from the respective Governments and trade on a common platform for strengthening strategic cooperation between India and Bhutan in Agri Food Sector.

This Virtual-BSM with Bhutan is the 15th in the series of such events organized by APEDA with various countries. Earlier such virtual Virtual-BSM was first organized with the United Arab Emirates (UAE) followed by Kuwait, Indonesia, Switzerland, Belgium, Iran, South Africa, Germany, USA, Canada, Australia, Thailand and Oman.

Meanwhile, the export promotion programme was not possible to be organized physically, due to the ongoing Covid19 pandemic. APEDA took a lead to organize Virtual BSM to provide a platform to the exporters and importers of India and Bhutan.

The CNX Nifty is currently trading at 14291.20, up by 153.85 points or 1.09% after trading in a range of 14221.65 and 14302.10. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 6.04%, Wipro up by 5.42%, Maruti Suzuki up by 5.42%, Eicher Motors up by 4.02% and UPL up by 3.88%. On the flip side, Hindalco down by 2.46%, Tata Steel down by 1.91%, JSW Steel down by 1.10%, ITC down by 0.99% and Bharti Airtel down by 0.98% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 648.90 points or 2.36% to 28,139.03, Hang Seng increased 329.70 points or 1.2% to 27,878.22, Taiwan Weighted strengthened 249.95 points or 1.64% to 15,463.95, KOSPI rose 120.50 points or 3.97% to 3,152.18, Jakarta Composite soared 104.21 points or 1.69% to 6,257.84 and Straits Times was up by 81.54 points or 2.8% to 2,988.51. On the flip side, Shanghai Composite was down by 6.09 points or 0.17% to 3,570.11.

European markets were trading higher, UK’s FTSE 100 increased 21.05 points or 0.31% to 6,878.01, France’s CAC increased 38.88 points or 0.69% to 5,708.73 and Germany’s DAX was up by 161.70 points or 1.16% to 14,129.94.