Key gauges remain in green in morning deals

Indian equity benchmarks remained in green in morning deals, on the back of positive global cues. Sentiments remained positive as the Confederation of Indian Industry (CII) in its latest survey report stated that India’s economy is expected to see a swift recovery from the impact of the second wave of COVID-19 as lockdowns were largely designed to limit social gatherings and did not affect economic activities much. Some support also came as the Department of Economic Affairs (DEA) under the Ministry of Finance stated that the Indian economy is showing signs of revival from the second wave of the COVID-19 pandemic. It further added that a healthy monsoon coverage, gradually rising Kharif sowing and unlocking of states are expected to ease inflation. Investors also awaiting data on consumer price inflation (CPI) for June and industrial output for May. 

On the global front, Asian markets were trading in green following the broadly positive cues from Wall Street. However, investors continue to be spooked amid concerns that a state of emergency to contain a fresh wave of COVID-19 infections will slow the economic recovery. Back home, on the sectoral front, Power stocks remained in focus as power ministry data showed that India's power consumption grew nearly 18 per cent in first week of July to 30.33 billion units (BU) compared to a year ago and returned to pre-pandemic level mainly due to easing of lockdown curbs and delayed monsoon. Tea stocks too remained in watch as the report stated that the tea industry is bracing for a decline in exports to the tune of 30-40 million kg this year as compared to 2020, due to the availability of low-cost varieties in the global market and amid trade restrictions in countries that have traditionally been strong importers.

The BSE Sensex is currently trading at 52672.72, up by 286.53 points or 0.55% after trading in a range of 52568.92 and 52694.27. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.70%, while Small cap index was up by 0.98%.

The top gaining sectoral indices on the BSE were Realty up by 3.24%, Basic Materials up by 1.04%, Bankex up by 0.93%, Consumer Disc up by 0.88% and Auto up by 0.81%, while Power down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.70%, Maruti Suzuki up by 1.58%, ICICI Bank up by 1.49%, SBI up by 1.36% and Axis Bank up by 1.01%. On the flip side, Bajaj Finserv down by 0.67%, Bharti Airtel down by 0.34%, Hindustan Unilever down by 0.21%, HDFC Bank down by 0.13% and Tech Mahindra down by 0.09% were the top losers.

Meanwhile, Niti Aayog Vice Chairman Rajiv Kumar has exuded confidence that with India's story remaining ‘very strong’, the economy will register double-digit growth in the current fiscal (FY22) and the disinvestment climate also looks better. He also asserted that the country is prepared in a far better manner in case there is a COVID wave as states have also their own lessons from the previous two waves.

Asked when private investments will pick up, Kumar said in some sectors like steel, cement, and real estate, significant investment in capacity expansion is happening already. In the consumer durable sector, it might take longer because consumers might feel a little hesitant due to uncertainty on account of the pandemic. On concerns over a possible third COVID wave, he said the government is much better prepared in case such a situation comes up.

On whether the government will be able to achieve its ambitious disinvestment target this fiscal, Kumar said that despite the second COVID wave and its significant impact on the health side, markets have remained buoyant and they touched new heights. Pointing out that a good number of IPOs of startups are lined up, he said ‘the climate for disinvestment is looking better and I am very hopeful that the disinvestment target would be fully realized.’ He also said the government has budgeted Rs 1.75 lakh crore from stake sales in public sector companies and financial institutions. He added that achieving the target will be crucial for the government's finances which have been stressed due to the pandemic and resultant increase in spending activities.

The CNX Nifty is currently trading at 15776.10, up by 86.30 points or 0.55% after trading in a range of 15746.55 and 15783.30. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.69%, Shree Cement up by 2.55%, Tata Consumer Product up by 2.26%, ICICI Bank up by 1.57% and Maruti Suzuki up by 1.54%. On the flip side, Bajaj Finserv down by 0.70%, BPCL down by 0.45%, Hindalco down by 0.37%, Bharti Airtel down by 0.34% and Hindustan Unilever down by 0.29% were the top losers.

Asian markets were trading in green; Hang Seng increased 185.82 points or 0.68% to 27,530.36, Nikkei 225 surged 617.54 points or 2.21% to 28,557.96, KOSPI rose 29.17 points or 0.91% to 3,247.12, Shanghai Composite gained 32.84 points or 0.93% to 3,556.93, Straits Times advanced 7.94 points or 0.25% to 3,139.34, Taiwan Weighted strengthened 160.81 points or 0.91% to 17,822.29 and Jakarta Composite soared 49.19 points or 0.81% to 6,089.03.