Markets continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, on the back of broad-based gains across sectors amid positive cues from global markets. Sentiments remained up-beat with S&P Global Ratings’ statement that an improvement in macroeconomic conditions is likely to alleviate stress for India's banking sector. It said the Indian government's strong efforts to shield banks from the COVID-19 pandemic have largely been successful, but a hit from the pandemic is inevitable. Traders also took a note of private report stated that the number of ultra-high networth individuals (UHNWIs), with wealth of $30 million or more, is expected to rise 63 percent over the next five years to 11,198 in India, the second fastest growth in the world. Besides, short-covering by speculators ahead of February F&O expiry too supported the market. However, markets trimmed some gains as some concern came with RBI Governor Shaktikanta Das’ statement that the Reserve Bank of India (RBI) is concerned over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government.

On the global front, Asian markets were trading in green after Fed Chair Jerome Powell said the U.S. central bank will maintain its ultra-easy monetary policy stance for the foreseeable future. Investors are refocusing on a vaccine and stimulus-driven global economic recovery with optimism about the reopening of the economy. Back home, on the sectoral front, aviation stocks remained in green despite global airline industry body IATA warned that the outlook for airlines had weakened since its December forecasts, and due to tightening travel restrictions it now expected the sector to still be bleeding cash by the fourth quarter of this year .

The BSE Sensex is currently trading at 51230.16, up by 448.47 points or 0.88% after trading in a range of 51057.74 and 51386.12. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.99%, while Small cap index was up by 0.98%.

The top gaining sectoral indices on the BSE were Metal up by 2.70%, PSU up by 1.72%, Oil & Gas up by 1.68%, Healthcare up by 1.53% and Energy up by 1.52%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Indusind Bank up by 3.67%, Axis Bank up by 3.60%, Dr. Reddys Lab up by 3.31%, Sun Pharma up by 2.30% and TCS up by 2.13%. On the flip side, Nestle down by 1.23%, Ultratech Cement down by 1.03%, Asian Paints down by 0.78%, Bajaj Auto down by 0.45% and Tech Mahindra down by 0.43% were the top losers.

Meanwhile, on a review of current liquidity and financial conditions, the Reserve Bank of India (RBI) has decided to conduct simultaneous purchase and sale of Government securities under Open Market Operations (OMO) for an aggregate amount of Rs 15,000 crore each on March 4, 2021. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities.

Eligible participants can submit their bids in electronic format to the RBI on its core banking solution (E-Kuber) system between 10 am to 11 am on March 4. RBI said only in the event of system failure, physical bids would be accepted. The names of successful bidders will be announced on the same day.

RBI said it reserves the right to decide the quantum of purchase/sale of individual securities, accept bids for less than the aggregate amount, as well as to accept or reject any or all bids either wholly or partially without giving any reasons. The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets.

The CNX Nifty is currently trading at 15127.70, up by 145.70 points or 0.97% after trading in a range of 15065.35 and 15170.85. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.34%, UPL up by 3.96%, Indusind Bank up by 3.77%, Axis Bank up by 3.52% and HDFC Life Insurance up by 3.19%. On the flip side, Nestle down by 1.20%, Hero MotoCorp down by 1.07%, Ultratech Cement down by 1.07%, Eicher Motors down by 0.46% and Titan Co down by 0.44% were the top losers.

All the Asian markets were trading in green; Nikkei 225 surged 447.47 points or 1.51% to 30,119.17, Taiwan Weighted strengthened 174.01 points or 1.07% to 16,386.54, Jakarta Composite soared 32.83 points or 0.53% to 6,283.88, Straits Times advanced 44.55 points or 1.52% to 2,969.13, KOSPI rose 87.56 points or 2.92% to 3,082.54, Shanghai Composite gained 38.20 points or 1.07% to 3,602.28 and Hang Seng increased 638.16 points or 2.15% to 30,356.40.