Sensex, Nifty continue to trade in positive terrain

The local equity markets continue to trade in positive terrain in noon session amid hopes of a quick economic revival post unlock and expectation of large number of adult population vaccinated in 2021. Traders were also encouraged as the arrival of monsoon in the country ahead of the schedule is going to boost agricultural production in the country and is expected to add to turnaround in the economy. Monsoon has arrived into parts of Gujarat, Madhya Pradesh, Chhattisgarh, Odisha, and remaining areas of Maharashtra, Telangana, Andhra Pradesh six days ahead of schedule. However, upside remain limited as US think-tank has observed that India's domestic challenges due to COVID-19 crisis have become a threat to its regional and global ambitions.

On the global front, Asian markets were trading mixed as investors looked past rising U.S. consumer prices and focused on one off-factors which suggested higher inflation could be short-lived. On the sectoral front, sugar stocks remained in sweet spot as sugar mills in India have exported 4.25 million tonnes of sugar so far in the ongoing 2020-21 marketing year ending September, with maximum shipments to Indonesia.

The BSE Sensex is currently trading at 52474.10, up by 173.63 points or 0.33% after trading in a range of 52388.95 and 52641.53. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.32%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were IT up by 1.76%, TECK up by 1.48%, Energy up by 1.02%, Metal up by 0.48% and Auto was up by 0.20%, while Realty down by 0.86%, Power down by 0.81%, Capital Goods down by 0.62%, Bankex down by 0.59% and Consumer Durables was down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.36%, Infosys up by 1.56%, HCL Tech up by 1.53%, Reliance Industries up by 1.25% and Power Grid was up by 1.18%. On the flip side, SBI down by 1.26%, ICICI Bank down by 1.09%, Indusind Bank down by 0.92%, Axis Bank down by 0.71% and Titan Company down by 0.71% were the top losers.

Meanwhile, US think-tank has observed that India's domestic challenges due to COVID-19 crisis have become a threat to its regional and global ambitions. It warned that unless it recovers with the help of allies like the United States, the pandemic could impact the geopolitical balance in the Indo-Pacific. It said as such, it is in the United States' best interests to help India retain its status as a pre-eminent power in South Asia, particularly in view of China's efforts to bolster its position at the expense of the US and India.

It pointed out that at the start of the pandemic, India offered medical assistance to its immediate neighbours and followed vaccine diplomacy in the first three months of 2021 which helped India to project itself as a regional leader, advancing its claim of being a global power in waiting. It noted that the recent surge of COVID-19 in South Asia challenges India's traditional ability to aid its smaller neighbours, a change that could, in turn, affect India's influence in its competition with China. It added that unless India can recover from this surge with the help of allies like the United States, the pandemic could impact the Indo-Pacific's geopolitical balance.

It further said in the first phase of the COVID-19 pandemic, India succeeded in occupying the role of a regional leader. But official complacency, disinclination on the part of government leaders to accept the advice of scientific advisors and reluctance to ramp up vaccine production and distribution has seriously damaged India’s standing.

The CNX Nifty is currently trading at 15776.30, up by 38.55 points or 0.24% after trading in a range of 15749.80 and 15835.55. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.84%, TCS up by 2.55%, HCL Tech up by 1.66%, Infosys up by 1.62% and Power Grid was up by 1.39%. On the flip side, Adani Ports down by 2.05%, SBI down by 1.24%, ICICI Bank down by 1.16%, SBI Life Insurance down by 1.11% and HDFC Life Insurance was down by 1.04% were the top losers.

Asian markets were trading mixed, KOSPI rose 24.68 points or 0.77% to 3,249.32, Straits Times advanced 1.59 points or 0.05% to 3,164.09, Taiwan Weighted strengthened 54.30 points or 0.32% to 17,213.52 and Hang Seng was up by 137.79 points or 0.48% to 28,876.67.

On the other side, Nikkei 225 slipped 9.83 points or 0.03% to 28,948.73, Jakarta Composite lost 2.10 points or 0.03% to 6,105.44 and Shanghai Composite was down by 17.25 points or 0.48% to 3,593.61.