Key indices remain in green in morning deals

Indian equity benchmarks climbed off the fresh record high levels scaled in early deals, but were still trading higher, on optimism over Covid-19 vaccines roll-out and expectations of a quick economic recovery. Sentiments remained positive with India Ratings and Research in a report stated that the aggregate fiscal deficit of states is likely to be at 4.3 per cent of the gross domestic product (GDP) in 2021-22 compared to 4.6 per cent in 2020-21. The rating agency has revised the outlook on state finances to stable for FY22 from stable-to-negative. Some support also came with a private report that economic activity is on the verge of normality after getting severely hit by COVID-19 and Indian GDP will grow at 13.5 per cent in FY22. Separately, the Department of Expenditure under the Ministry of Finance has released the 16th weekly instalment of Rs 5,000 crore to the States on Monday to meet the Goods and Services Tax (GST) compensation shortfall.

On the global front, Asian markets were trading higher on optimism for a global economic recovery amid accelerated Covid-19 vaccine rollouts. Upbeat corporate news and minutes from the Reserve Bank of Australia's February 2 monetary policy meeting that showed Australia's economy is recovering from the Covid-19 pandemic at a faster than expected pace generated positive sentiment. Back home, on the sectoral front, Banking stocks were in limelight as RBI data showed bank credit grew 5.93 per cent to Rs 107.05 lakh crore, while deposits rose 11.06 per cent to Rs 147.98 lakh crore in the fortnight ended January 29.

The BSE Sensex is currently trading at 52429.88, up by 275.75 points or 0.53% after trading in a range of 52285.72 and 52516.76. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.70%, while Small cap index up by 0.75%.

The top gaining sectoral indices on the BSE were Metal up by 3.87%, Power up by 2.07%, Utilities up by 1.98%, Basic Materials up by 1.98% and Energy up by 1.74%, while there was no loser.

The top gainers on the Sensex were ONGC up by 3.61%, Power Grid Corporation up by 2.87%, Kotak Mahindra Bank up by 2.47%, Ultratech Cement up by 1.90% and Maruti Suzuki up by 1.84%. On the flip side, Nestle down by 1.60%, Axis Bank down by 0.96%, ICICI Bank down by 0.89%, Asian Paints down by 0.66% and Bajaj Finserv down by 0.59% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that bank credit grew 5.93 percent to Rs 107.05 lakh crore, while deposits rose 11.06 percent to Rs 147.98 lakh crore in the fortnight ended January 29, 2021. In the fortnight ended January 31, 2020, bank credit stood at Rs 101.05 lakh crore and deposits at Rs 133.24 lakh crore.

In the previous fortnight ended January 15, 2021, growth in bank credit was 6.36 percent, while deposits rose 11.41 percent. During the first nine months of the current fiscal, bank credit rose by 3.2 percent and deposits by 8.5 percent.

In December 2020, non-food credit growth of banks stood at 5.9 percent as compared to 7 percent in the same month of the previous year. During the reporting month, growth in credit to agriculture and allied activities accelerated to 9.4 percent from 5.3 percent in December 2019.

The CNX Nifty is currently trading at 15410.60, up by 95.90 points or 0.63% after trading in a range of 15365.55 and 15431.75. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 4.56%, Hindalco up by 4.32%, ONGC up by 3.50%, JSW Steel up by 3.05% and Power Grid Corporation up by 3.01%. On the flip side, Nestle down by 1.56%, ICICI Bank down by 1.02%, Axis Bank down by 0.91%, Hero MotoCorp down by 0.59% and Bajaj Finserv down by 0.56% were the top losers.

Asian markets were trading higher; Hang Seng increased 543.81 points or 1.8% to 30,717.38, Jakarta Composite soared 19.26 points or 0.31% to 6,289.58, KOSPI rose 11.62 points or 0.37% to 3,158.62, Straits Times advanced 6.96 points or 0.24% to 2,938.48 and Nikkei 225 surged 606.45 points or 2.02% to 30,690.60.