Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in afternoon session with Sensex and Nifty trading above 51400 and 15400 levels respectively. Among blue chip stocks, Reliance Industries was top gainer trading up by 4.89%, while Sun Pharma was top loser down by 3.54%. Meanwhile, broader indices were also trading in green, supporting their larger peers. Traders were taking solace as Reserve Bank stated that it will ensure that system-level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability. Meanwhile, RBI in its annual report for 2020-21 stated that the economic growth prospects essentially depend on how fast the country can arrest second wave of Covid-19 pandemic. While the economy has not moderated to the extent during first wave, surrounding uncertainties can act as a deterrent in the immediate period.

On the global front, Asian markets were trading mostly higher as traders welcoming another forecast-beating reading on US jobless claims that reinforced optimism about the recovery in the world's top economy. Back home, government is considering a tweak in the current foreign direct investment (FDI) policy to allow overseas investors pick up majority stake in the India's second biggest oil refiner Bharat Petroleum Corp (BPCL).

The BSE Sensex is currently trading at 51401.79, up by 286.57 points or 0.56% after trading in a range of 51258.69 and 51477.05. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.36%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Energy up by 3.58%, Metal up by 1.65%, Oil & Gas up by 1.29%, Telecom up by 0.73% and Basic Materials was up by 0.55%, while Power down by 0.39%, Consumer Durables down by 0.37%, Healthcare down by 0.37%, Utilities down by 0.35% and Auto was down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 4.89%, Kotak Mahindra Bank up by 1.27%, HDFC up by 1.17%, ONGC up by 1.07% and Tech Mahindra was up by 0.78%. On the flip side, Sun Pharma down by 3.54%, Mahindra & Mahindra down by 1.58%, Dr. Reddys Lab down by 1.39%, Titan Company down by 1.09% and ICICI Bank was down by 1.08% were the top losers.

Meanwhile, the size of the Reserve Bank of India’s (RBI) balance sheet, which is reflective of activities carried out by it in pursuance of currency issue function as well as monetary policy and reserve management, has increased by Rs 3,72,876.43 crore, i.e., 6.99 percent from Rs 53,34,792.70 crore as on June 30, 2020 to Rs 57,07,669.13 crore as on March 31, 2021. The increase on the asset side was mainly due to increase in foreign and domestic investments by 11.48 percent and 13.75 percent, respectively. On the liability side, the increase was due to increase in deposits, notes issued and other liabilities.

As per the RBI's Annual Report for 2020-21, while income for the year decreased by 10.96 percent, the expenditure decreased by 63.10 percent. The year ended with an overall surplus of Rs 99,122 crore as against Rs 57,127.53 crore in the previous year, representing an increase of 73.51 percent. On account of transition to April-March accounting year from July-June accounting period, the RBI has come out with data for nine months for 2020-21 as compared to twelve months for the previous year. Earlier this month, the Central Board of Directors of RBI had approved transfer of Rs 99,122 crore surplus to the central government.

Domestic assets constituted 26.42 percent, while the foreign currency assets and gold (including gold deposit and gold held in India) constituted 73.58 percent of total assets as on March 31, 2021 as against 28.75 per cent and 71.25 per cent, respectively, as on June 30, 2020. As on March 31, 2021, the Reserve Bank held 695.31 metric tonnes of gold as compared to 661.41 metric tonnes as on June 30, 2020. The increase is on account of addition of 33.90 metric tonnes of gold during the year, the report said. It further said of the 695.31 metric tonnes as on March 31, 2021, 292.30 metric tonnes is held as backing for notes issued and shown separately as an asset of Issue Department.

The CNX Nifty is currently trading at 15436.60, up by 98.75 points or 0.64% after trading in a range of 15394.75 and 15455.55. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 5.15%, Grasim Industries up by 2.60%, Coal India up by 2.39%, Adani Ports up by 2.21% and Eicher Motors was up by 2.15%. On the flip side, Sun Pharma down by 3.63%, Mahindra & Mahindra down by 1.59%, Dr. Reddys Lab down by 1.46%, NTPC down by 1.00% and Titan Company was down by 0.99% were the top losers.

Asian markets were trading mostly green; Jakarta Composite soared 1.19 points or 0.02% to 5,843.02, Straits Times advanced 24.37 points or 0.77% to 3,189.19, Taiwan Weighted strengthened 269.25 points or 1.62% to 16,870.86, Nikkei 225 surged 600.40 points or 2.1% to 29,149.41 and KOSPI was up by 23.22 points or 0.73% to 3,188.73.

On the flip side; Shanghai Composite declined 20.69 points or 0.57% to 3,588.16 and Hang Seng was down by 29.11 points or 0.1% to 29,084.09.