Key indices continue to trade in green terrain in morning deals

Indian equity benchmarks continued to trade in green terrain in morning deals, tracking similar cues from their Asian peers. Sentiments remained positive with Credit ratings agency Crisil in its latest report stated that the expanded Emergency Credit Line Guarantee Scheme (ECLGS) will help businesses like hotels, civil aviation and tour operators, which are the hardest hit by the second wave of COVID-19. It will also support build-up of healthcare infrastructure, mainly oxygen availability, in tier-2 and beyond cities and the hinterland. Traders took a note of Assocham’s report in which it has recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the Micro Small and Medium Enterprises (MSMEs) which are reeling under the severe impact of COVID-19.  As the states are in the process of easing lockdowns, it said the trade and industry would need all-around support to pick up their business thread again. On the global front, Asian markets were trading mostly higher, weathering the latest twist in U.S.-China ties as well as Federal Reserve comments on a potential tapering in stimulus.

The BSE Sensex is currently trading at 52119.51, up by 270.03 points or 0.52% after trading in a range of 52087.60 and 52240.61. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.90%, while Small cap index was up by 1.08%.

The top gaining sectoral indices on the BSE were Realty up by 4.10%, Consumer Durables up by 2.74%, Consumer discretionary up by 1.00%, Energy up by 0.97% and Industrials up by 0.97%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Titan Co up by 5.68%, Kotak Mahindra Bank up by 2.03%, ONGC up by 1.57%, HDFC up by 1.00% and Axis Bank up by 0.87%. On the flip side, Tech Mahindra down by 0.58%, Bajaj Auto down by 0.58%, SBI down by 0.57%, Indusind Bank down by 0.46% and HCL Technologies down by 0.29% were the top losers.

Meanwhile, Assocham has recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the Micro Small and Medium Enterprises (MSMEs) which are reeling under the severe impact of COVID-19.  As the states are in the process of easing lockdowns, it said the trade and industry would need all-around support to pick up their business thread again.

The chamber has suggested that the surplus funds of ESIC (Employees State Insurance Corporation) should be used for providing wage support measures/stimulus packages for the employees. It said ‘this is time to support and spend without giving too much focus on the fiscal parameters. I am sure, the RBI and the government are constantly working on innovative solutions to keep infusing cash into the system despite understandable revenue pressures.’ It added that the government and the RBI should 'consider an interest subvention scheme with validity till March 31, 2022, especially, for the micro and small business segment.

For providing relief to the worst-hit hospitality sector, it suggested allowing GST Input Credit for restaurants. For giving a much-needed boost to the realty sector, it has recommended reduction in stamp duty as also property tax by half at least for three years.

The CNX Nifty is currently trading at 15653.75, up by 77.55 points or 0.50% after trading in a range of 15644.45 and 15693.15. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 5.66%, Kotak Mahindra Bank up by 1.96%, ONGC up by 1.53%, Tata Motors up by 1.24% and Indian Oil Corp. up by 1.17%. On the flip side, UPL down by 0.84%, SBI down by 0.62%, Tech Mahindra down by 0.59%, Bajaj Auto down by 0.58% and Indusind Bank down by 0.54% were the top losers.

Asian markets were trading mostly higher; Jakarta Composite soared 9.18 points or 0.15% to 6,040.76, Taiwan Weighted strengthened 90.26 points or 0.53% to 17,255.30, KOSPI rose 29.89 points or 0.93% to 3,254.12, Straits Times advanced 4.19 points or 0.13% to 3,165.23, Shanghai Composite gained 13.76 points or 0.38% to 3,610.90 and Nikkei 225 surged 133.40 points or 0.46% to 29,079.54. On the flip side, Hang Seng decreased 117.69 points or 0.4% to 29,179.93.