Markets add gains in late afternoon session

Indian equity markets extended their gains in late afternoon session. Traders were seen piling up positions in Power, PSU and Capital Goods sector while selling was witnessed in Telecom, FMCG and Metal sector stocks. Traders ignored that rating agency ICRA said slackening economic momentum driven by the second wave of Covid-19 infections in India has emerged as a concern with bruised sentiment, high healthcare costs and fuel expenses likely to limit discretionary purchases in the immediate term. Meanwhile, industry body Assocham president Vineet Agarwal has expressed need of a 'concentrated and right kind' of relief package for MSME sector, which was most affected by covid-19 pandemic. On the global front, Asian markets were trading mixed after data showed the U.S. economic recovery is underway. Bargain hunting offering some support, while inflation worries and COVID concerns kept the underlying mood cautious. European markets were trading higher, as the market focus continued to be on the volatility in the cryptocurrency space.

The BSE Sensex is currently trading at 50,777.54, up by 237.06 points or 0.47% after trading in a range of 50465.90 and 50855.32. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.94%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Power up by 1.71%, PSU up by 1.68%, Capital Goods up by 1.56%, Realty up by 1.43% and Utilities was up by 1.40%, while Telecom down by 0.80%, FMCG down by 0.46%, Metal down by 0.45% and Energy was down by 0.06% were the few losing indices on BSE.

The top gainers on the Sensex were SBI up by 2.22%, Larsen & Toubro up by 1.90%, HDFC up by 1.34%, Maruti Suzuki up by 1.28% and Bajaj Auto up by 1.27%. On the flip side, Indusind Bank down by 1.27%, Titan Company down by 1.26%, Ultratech Cement down by 1.04%, Hindustan Unilever down by 1.04% and Mahindra & Mahindra down by 0.78% were the top losers.

Meanwhile, Industry body Assocham president Vineet Agarwal has expressed need of a 'concentrated and right kind' of relief package for MSME sector, which was most affected by covid-19 pandemic.

Besides, Agarwal said that banks should increase working capital limit of MSMEs by 20 per cent but not charge any extra collateral. Secondly, re-classification of NPAs of MSMEs should be done. Thirdly, street vendors, small shopkeepers should be provided with some sort of relief, direct benefit, working capital loan.

The Assocham president also said that as last time some relief measures were taken specifically for the rural sector, a similar step once again should be taken. He noted that certainly, there is a need for some kind of impetus at various levels and definitely more at the MSME level.

The CNX Nifty is currently trading at 15,235.30, up by 60.00 points or 0.40% after trading in a range of 15145.45 and 15251.90. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Indian Oil up by 4.03%, SBI up by 2.26%, BPCL up by 2.05%, Larsen & Toubro up by 2.02% and Eicher Motors up by 1.86%. On the flip side, Shree Cement down by 2.17%, JSW Steel down by 2.11%, Tata Steel down by 1.97%, Britannia down by 1.58% and Titan Company down by 1.22% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 46.78 points or 0.17% to 28,364.61, Taiwan Weighted strengthened 36.23 points or 0.22% to 16,338.29, Shanghai Composite gained 10.72 points or 0.31% to 3,497.28 and Straits Times was up by 6.29 points or 0.2% to 3,124.18. On the flip side, Jakarta Composite lost 9.49 points or 0.16% to 5,763.63, KOSPI fell 12.12 points or 0.38% to 3,144.30 and Hang Seng was down by 46.18 points or 0.16% to 28,412.26.

European markets were trading higher, UK’s FTSE 100 increased 16.49 points or 0.23% to 7,034.54 and France’s CAC was up by 6.06 points or 0.09% to 6,392.47.