Key indices remain under grip of bulls

Indian equity benchmarks remained strong in late morning session, with both the Sensex and the Nifty holding their notable gains, as bulls held a tight grip over the Dalal Street. Positive cues from other Asian markets helped key indices to maintain gaining rally. Domestic sentiments were positive, as India's services activity expanded at the fastest rate in a year during February, while employment fell further and companies noted the sharpest rise in overall expenses. The seasonally adjusted India Services Business Activity Index rose from 52.8 in January to 55.3 in February, pointing to the sharpest rate of expansion in output in a year amid improved demand and more favourable market conditions.

On the global front, Asian markets were trading higher, as the services sector in China continued to expand in February, albeit at a slower pace, the latest survey from Caixin showed on Wednesday with a services PMI score of 51.5. That's down from 52.0 in January, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Service providers indicated that business activity rose in line with new work. Total new orders increased modestly overall, with the rate of growth likewise easing to a ten-month low. While a number of firms commented on firmer client demand, there were reports that the recent resurgence of COVID-19 cases globally had dampened sales growth.

The BSE Sensex is currently trading at 50772.12, up by 475.23 points or 0.94% after trading in a range of 50512.84 and 50870.63. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.19%, while Small cap index was up by 1.57%.

The top gaining sectoral indices on the BSE were Metal up by 3.36%, Basic Materials up by 2.18%, Realty up by 1.62%, Utilities up by 1.59% and Bankex up by 1.58%, while Auto down by 0.51% was the only losing index on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.76%, Bajaj Finance up by 2.53%, SBI up by 2.51%, Axis Bank up by 2.07% and HDFC up by 2.00%. On the flip side, Bajaj Auto down by 1.48%, Maruti Suzuki down by 1.42%, Mahindra & Mahindra down by 0.73%, Asian Paints down by 0.48% and Power Grid down by 0.22% were the top losers.

Meanwhile, India has urged World Trade Organisation (WTO) members to reach consensus on a proposal on waiver of certain provisions in a multilateral agreement on intellectual property to deal with COVID-19 crisis, stating that one cannot continue to engage in endless discussions when millions of lives are lost to the pandemic. Brajendra Navnit, Ambassador and Permanent Representative of India to the WTO said that there is a need for concerted efforts by all the members to ensure that WTO makes a meaningful contribution to defeat COVID-19 and prove that it can indeed deliver in a crisis.

In October 2020, India and South Africa submitted a proposal suggesting a waiver for all WTO members on the implementation, application and enforcement of certain provisions of the TRIPS Agreement in relation to the prevention, containment or treatment of COVID-19. The agreement on Trade-Related Aspects of Intellectual Property Rights or TRIPS came into effect in January 1995. It is a multilateral agreement on intellectual property (IP) rights such as copyright, industrial designs, patents and protection of undisclosed information or trade secrets.

He said that the proponents of the proposal are ready to engage in good faith and have frank discussions on the text of the waiver, relating to both its duration and scope, in order to operationalise the waiver in the shortest possible time. he added ‘we urge the Members to reach consensus on the Waiver Proposal to ramp up production for the cause of truly ensuring fair, equitable and affordable access to COVID-19 products in a timely manner’. Navnit added that three months after the emergence of successful vaccines, the global vaccination scenario still looks grim.

The CNX Nifty is currently trading at 15079.70, up by 160.60 points or 1.08% after trading in a range of 14995.80 and 15090.65. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 5.65%, JSW Steel up by 4.29%, Adani Ports & SEZ up by 3.96%, Hindalco up by 3.27% and Grasim Industries up by 2.86%. On the flip side, Hero MotoCorp down by 1.52%, Maruti Suzuki down by 1.40%, Bajaj Auto down by 1.29%, Eicher Motors down by 0.92% and Mahindra & Mahindra down by 0.74% were the top losers.

Asian markets were trading higher; Taiwan Weighted strengthened 181.14 points or 1.14% to 16,128.02, KOSPI rose 22.91 points or 0.75% to 3,066.78, Straits Times advanced 15.85 points or 0.53% to 2,989.72, Jakarta Composite soared 11.43 points or 0.18% to 6,370.64, Shanghai Composite gained 46.69 points or 1.33% to 3,555.28, Hang Seng increased 491.88 points or 1.69% to 29,587.74 and Nikkei 225 surged 125.66 points or 0.43% to 29,533.83.