Benchmarks continue trade in positive territory

The Indian equity benchmarks continued their trade in positive territory in late afternoon session. Traders were seen piling up positions in Metal, Basic Materials and Energy sectors while selling was witnessed in Telecom, Auto and Consumer discretionary sectors’ stocks. Sentiments remained positive despite ICRA’s report said that the ongoing second wave of COVID-19 will dampen the pace of recovery for corporate India and the contact-intensive sectors will be hit the most. However, the impact of the second wave on many sectors is set to be lower than the first because the lockdowns are less widespread and stringent as of now as against the strong nationwide lockdown last year which brought all economic activities to a grinding halt. Meanwhile, to meet rising demand in the ongoing pandemic, the government has allowed import of medical devices like nebulizer, oxygen concentrators, oxygen cannister, oxygen cylinders, oxygen generators and ventilators.

On the global front, Asian markets were trading mostly in green as investors reacted to Fed Chair Jerome Powell's dovish comments and US President Joe Biden's congressional speech about increasing taxes on the rich. European markets were trading mostly in green as markets react to the US Federal Reserve’s decision to hold interest rates near zero and digest a fresh round of corporate earnings.

The BSE Sensex is currently trading at 49827.88, up by 94.04 points or 0.19% after trading in a range of 49535.98 and 50375.77. There were 13 stocks advancing against 16 stocks declining on the index, while 1 stock remains unchanged.

The broader indices were trading mixed; the BSE Mid cap index declined 0.14%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Metal up by 3.90%, Basic Materials up by 1.60%, Energy up by 0.83%, Healthcare up by 0.44% and Oil & Gas was up by 0.27%, while Telecom down by 1.00%, Auto down by 0.86%, Consumer discretionary down by 0.45%, Capital Goods down by 0.37% and PSU was down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 6.18%, Bajaj Finance up by 4.27%, Axis Bank up by 1.37%, Reliance Industries up by 1.19% and Dr. Reddys Lab up by 1.07%. On the flip side, SBI down by 1.60%, HCL Tech down by 1.42%, Mahindra & Mahindra down by 1.25%, Larsen & Toubro down by 1.12% and Power Grid down by 0.61% were the top losers.

Meanwhile, emphasizing that financial institutions should be encouraged to extend their lending facility to the electric mobility sector, the government think-tank Niti Aayog has made various suggestions such as the government should provide incentives on electric vehicle (EV) purchase over and above the existing subsidy under the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) scheme.

The Niti Aayog in its status quo analysis of electric mobility in India also said the government should include EVs and associated businesses in the priority sector lending category. The government think-tank further pitched for creation of non-financial incentives, including priority lanes and exclusive parking for EVs in commercial complexes.

As per Niti Aayog, green zones should be demarcated within cities that permit only EVs, and heavy taxes should be charged on conventional fuel vehicles. The Aayog also recommended providing interest subvention on loan taken for EV purchase.

The CNX Nifty is currently trading at 14899.55, up by 35.00 points or 0.24% after trading in a range of 14814.45 and 15044.35. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 7.89%, Bajaj Finserv up by 6.48%, Tata Steel up by 5.62%, Bajaj Finance up by 4.21% and Axis Bank up by 1.44%. On the flip side, Hero MotoCorp down by 2.02%, Eicher Motors down by 2.01%, SBI down by 1.55%, HCL Tech down by 1.52% and Mahindra & Mahindra down by 1.29% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 231.92 points or 0.8% to 29,303.26, Jakarta Composite soared 38.48 points or 0.64% to 6,012.96, Shanghai Composite gained 17.83 points or 0.52% to 3,474.90 and Straits Times was up by 4.00 points or 0.12% to 3,223.56. On the flip side, Taiwan Weighted dropped 0.87 points or 0% to 17,566.66 and KOSPI was down by 7.40 points or 0.23% to 3,174.07.

European markets were trading mostly in green, UK’s FTSE 100 increased 47.10 points or 0.68% to 7,010.77 and France’s CAC was up by 37.31 points or 0.59% to 6,344.29. On the flip side, Germany’s DAX was down by 29.99 points or 0.2% to 15,262.19.