Indices extend gains in late afternoon session

Key benchmark indices extended their gains in late afternoon session, with gains of above one and half percent. Industrials, Auto and Telecom counters were on the priority list of the buyers. Traders took encouragement after foreign portfolio investors (FPIs) remained net buyers to the tune of Rs 12,266 crore in the Indian market in the first five trading sessions of February, as positive sentiment post-Union Budget 2021 sparked a rally in investment. As per FPI statistics available with depositories, overseas investors pumped in a net Rs 10,793 crore into equities and Rs 1,473 crore in the debt segment between February 1-5. On the sectoral front, coal sector remained in focus, as country's coal import rose by 15.1 per cent to 23.63 million tonnes (MT) in December 2020 compared to 20.52 MT in the year-ago month. Non-coking coal imports were at 15.63 MT in December this fiscal against 14.21 MT in the same month last fiscal. Coking coal imports were at 5.36 MT against 4.47 MT in December 2019-20.

On the global front, Asian markets are trading mostly in green following the record closing highs on Wall Street Friday as data showing a modest rebound in U.S. employment in the month of January boosted expectations for further U.S. stimulus. The continued rollout of vaccines and falling coronavirus infection rates in different part of the world also boosted sentiment. European markets were trading higher with markets tracking positive sentiment in Asia and the U.S.

The BSE Sensex is currently trading at 51499.19, up by 767.56 points or 1.51% after trading in a range of 51146.67 and 51514.20. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.53%, while Small cap index was up by 1.67%.

The top gaining sectoral indices on the BSE were Industrials up by 2.47%, Auto up by 2.46%, Telecom up by 2.43%, Capital Goods up by 2.24% and Energy was up by 2.08%, while FMCG down by 0.49% were the only losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 6.86%, Tech Mahindra up by 3.01%, Bajaj Finserv up by 2.94%, Larsen & Toubro up by 2.94% and Bharti Airtel up by 2.91%. On the flip side, Hindustan Unilever down by 1.34%, Kotak Mahindra Bank down by 0.62% and ITC down by 0.60% were the top losers.

Meanwhile, with an aim to ensure the availability of ample liquidity in the system in order to foster congenial financial conditions, the Reserve Bank of India (RBI) has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 20,000 crore on February 10, 2021.

The Reserve Bank reserves the right to decide on the quantum of purchase of individual securities, accept bids for less than the aggregate amount, purchase marginally higher/lower than the aggregate amount due to rounding-off and accept or reject any or all the bids either wholly or partially without assigning any reasons.

As per the RBI’s notification, eligible participants should submit their bids in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on February 10, 2021. Only in the event of system failure, physical bids would be accepted.

The CNX Nifty is currently trading at 15157.30, up by 233.05 points or 1.56% after trading in a range of 15041.05 and 15159.90. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 6.86%, Shree Cement up by 5.53%, Hindalco up by 5.42%, Tech Mahindra up by 3.08% and Larsen & Toubro up by 2.95%. On the flip side, Britannia down by 1.76%, Hindustan Unilever down by 1.30%, Divis Lab down by 0.88%, Kotak Mahindra Bank down by 0.65% and ITC down by 0.62% were the top losers.

Asian markets are trading mostly in green, Nikkei 225 surged 609.31 points or 2.12% to 29,388.50, Jakarta Composite soared 57.14 points or 0.93% to 6,208.87, Shanghai Composite gained 36.12 points or 1.03% to 3,532.45, Hang Seng increased 30.79 points or 0.11% to 29,319.47 and Straits Times was up by 26.92 points or 0.93% to 2,934.03. On the flip side, KOSPI was down by 29.39 points or 0.94% to 3,091.24.

European markets were trading higher, UK’s FTSE 100 increased 22.29 points or 0.34% to 6,511.62, France’s CAC increased 24.21 points or 0.43% to 5,683.47 and Germany’s DAX was up by 59.03 points or 0.42% to 14,115.75.