Sensex, Nifty remain in green terrain

Indian equity benchmarks cut some of their gains in late morning session but remained in green terrain, with both Sensex and Nifty holding notable gains. Domestic sentiments were positive, despite negative cues from other Asian markets. Traders were optimistic, amid reports that companies in India are likely to offer a 7.7 percent salary increase in 2021, one of the highest among the BRIC nations, and higher than the average actual increase of 6.1 percent in 2020. Global professional services firm Aon Plc on Tuesday released insights from its latest Salary Increase Survey in India, as of which 88 percent of the surveyed companies reported that they intend to increase salaries in 2021, as compared to 75 percent companies in 2020, reflecting positive business sentiment.

On the global front, Asian markets were trading mostly in red, after Malaysia's consumer prices declined at a softer pace in January. The data from the Department of Statistics showed that the consumer price index declined 0.2 percent year-on-year in January, following a 1.4 percent fall in December. The annual fall was largely driven by the decline in transportation cost, as prices fell 5.1 percent. Back home, the cash and futures markets of the National Stock Exchange (NSE) shut following a technical glitch.

The BSE Sensex is currently trading at 50020.22, up by 268.81 points or 0.54% after trading in a range of 49736.97 and 50248.81. 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 0.34%, while Small cap index was up by 0.80%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.38%, Bankex up by 1.20%, PSU up by 1.11%, Energy up by 1.06% and Industrials up by 1.05%, while IT down by 0.70%, TECK down by 0.44%, Utilities down by 0.29%, Auto down by 0.07% and Basic Materials down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.89%, Axis Bank up by 1.86%, Bajaj Finance up by 1.83%, Larsen & Toubro up by 1.74% and SBI up by 1.60%. On the flip side, TCS down by 1.57%, Dr. Reddy’s Lab down by 0.64%, Sun Pharma down by 0.60%, Infosys down by 0.59% and NTPC down by 0.53% were the top losers.

Meanwhile, supporting the government's decision to increase the agriculture credit target to Rs 16.5 lakh crore for the next fiscal (FY22), Agriculture Minister Narendra Singh Tomar has said that this will help in easing the liquidity crunch of farmers. In the Budget, Finance Minister Nirmala Sitharaman proposed 10 per cent hike in the agriculture credit target to Rs 16.5 lakh crore for the next fiscal from Rs 15 lakh crore in this financial year.

Tomar said to boost agriculture production and farmers' income, the government has taken several measures in the last six-and-a-half years. He added that the provision of Rs 16.5 lakh crore for the farm loan in the general budget will help in solving the cash crunch of farmers. He noted that the government is working on a mission mode to enhance the production of pulses and oilseeds.

He also said the pulses output has increased significantly in the last few years and there is a need to enhance it further. He said the acreage of mustard has increased and stressed on sustaining the momentum. Tomar also emphasised that farmers should get benefit of the minimum support price (MSP). He also highlighted the government's various initiative for the farm sector such as the PM-KISAN scheme.

The CNX Nifty is currently trading at 14820.45, up by 112.65 points or 0.77% after trading in a range of 14723.05 and 14822.25. There were 25 stocks advancing against 24 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Coal India up by 4.75%, HDFC Bank up by 2.05%, Larsen & Toubro up by 1.91%, Axis Bank up by 1.89% and Bajaj Finance up by 1.84%. On the flip side, GAIL India down by 2.38%, TCS down by 1.66%, UPL down by 1.35%, Tata Motors down by 1.33% and Dr. Reddy’s Lab down by 0.87% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 319.88 points or 1.06% to 29,836.15, Taiwan Weighted dropped 158.92 points or 0.97% to 16,284.48, Jakarta Composite lost 46.23 points or 0.74% to 6,226.58, KOSPI fell 75.11 points or 2.45% to 2,994.98, Shanghai Composite declined 89.78 points or 2.47% to 3,546.58 and Hang Seng decreased 586.69 points or 1.92% to 30,045.95. On the flip side, Straits Times advanced 37.96 points or 1.31% to 2,928.66.