Markets extend last session gains with positive opening

With a positive opening Indian equity markets have extended their previous session gains and are trading in fine fettle in early deals on Thursday.  Sustained buying in the key heavyweights supported BSE’s -- Sensex -- and NSE’s -- Nifty -- to regain their crucial 50,000 and 14,900 levels respectively. Meanwhile, broader indices are also trading in line with larger counterparts posting gains in the range of 0.50-0.75%. Support came in with Chief Economist of the International Monetary Fund (IMF) Gita Gopinath’s statement that the Reserve Bank of India (RBI)’s quantitative easing measures are a welcome move. Gopinath also said that this fiscal stance is also appropriate for India overall and that it is good that support isn’t being pulled back. She added there is evidence of normalisation of economic activities in India. Traders were also be getting some support on report stating that growth is of paramount importance now, the Reserve Bank of India said it will do whatever it takes to sustain the fledgling recovery by ensuring ample and assured liquidity and cheaper funds to oil the wheels of the economy.

On the global front, Asian markets are trading higher on Thursday following positive cues overnight from Wall Street. The US markets ended mostly higher on Wednesday as minutes from the Federal Reserve’s last meeting showed the central bank’s commitment to accommodative policy in order to support a full economic recovery.  Back home, on the sectoral front, traders were seen piling up position in Metal, Consumer Durables, Basic Materials, Telecom and Realty, while selling was witnessed in Power and Energy. In the scrip specific development, Barbeque-Nation Hospitality was locked in 20 per cent upper circuit, for the second straight day on the BSE.

The BSE Sensex is currently trading at 50027.52, up by 365.76 points or 0.74% after trading in a range of 49832.35 and 50056.06. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index up by 0.74%.

The gaining sectoral indices on the BSE were Metal up by 1.85%, Consumer Durables up by 1.70%, Basic Materials up by 1.39%, Telecom up by 1.25% and Realty up by 1.00%, while Power down by 0.36% and Energy down by 0.20% were only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.86%, HDFC up by 1.67%, Tech Mahindra up by 1.55%, Titan Co up by 1.43% and ICICI Bank up by 1.24%. On the flip side, ONGC down by 0.67%, Bajaj Auto down by 0.28% and Dr. Reddys Lab down by 0.26% were the top losers.

Meanwhile, the corporate affairs ministry has said that the latest amendments to the insolvency law by way of an ordinance are aimed at providing an efficient alternative resolution framework for corporate persons classified as Micro, Small and Medium Enterprises (MSMEs) under the Code, for ensuring quicker, cost-effective and value maximising outcomes for all the stakeholders, in a manner which is least disruptive to the continuity of MSMEs businesses and which preserves jobs.

It said pre-packaged insolvency resolution process has been introduced for stressed MSMEs. The initiative is based on a trust model and the amendments honour the honest MSME owners by trying to ensure that the resolution happens and the company remains with them. The ordinance to amend the Insolvency and Bankruptcy Code (IBC) was promulgated on April 4. The Union Cabinet approved a proposal to amend the IBC on March 31.

According to the ministry, it is expected that the incorporation of pre-packaged insolvency resolution process for MSMEs will alleviate the distress faced by them due to the impact of the pandemic Other expected benefits from the amendments include lesser burden on adjudicating authority, assured continuity of business operations for corporate debtor, less process costs and maximum assets realisation for financial creditors. 

The CNX Nifty is currently trading at 14928.60, up by 109.55 points or 0.74% after trading in a range of 14864.55 and 14939.15. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.75%, Bajaj Finserv up by 1.99%, Tata Steel up by 1.80%, Tata Motors up by 1.66% and Grasim Industries up by 1.57%. On the flip side, ONGC down by 0.72%, Adani Ports &Special down by 0.24%, Bajaj Auto down by 0.20%, Dr. Reddys Lab down by 0.20% and SBI Life Insuran down by 0.15% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 fell 121.58 points or 0.41% to 29,609.21, Jakarta Composite rose 4.88 points or 0.08% to 6,041.50, Taiwan Weighted soared 49.16 points or 0.29% to 16,864.52 KOSPI advanced 3.79 points or 0.12% to 3,141.20. Hang Seng surged 250.27 points or 0.87% to 28,925.07 and Shanghai Composite was up by 6.56 points or 0.19% to 3,486.19. However, Straits Times lost 0.38 points or 0.01% to 3,195.38.