Sensex, Nifty hold gains in late morning session

Indian equity benchmarks were holding gains in late morning session, with both Sensex and Nifty trading in green terrain, despite negative cues from other Asian markets. Traders were positive, amid reports that cash-laden investors are set to step up the hunt for Indian firms, mainly tech start-ups, likely to benefit in the post-pandemic world, after pumping in a record $30 billion via public and private equity deals this year. Eyeing India's large middle class with access to cheap smartphones and the internet, global investors have flocked to online platforms in the country and helped swell the ranks of unicorns, or start-ups valued at $1 billion or above.

On the global front, Asian markets were trading mostly in red, even after industrial output in Japan advanced a seasonally adjusted 6.2 percent on month in June, the Ministry of Economy, Trade and Industry said on Friday. That beat expectations for an increase of 5.0 percent following the downwardly revised 6.5 percent contraction in May (originally -5.9 percent). On a yearly basis, industrial production spiked 22.6 percent - roughly in line with expectations following the 21.1 percent gain in the previous month.

The BSE Sensex is currently trading at 52741.97, up by 88.90 points or 0.17% after trading in a range of 52555.39 and 52799.67. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.86%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Auto up by 1.49%, Utilities up by 1.46%, Power up by 1.36%, Industrials up by 1.14% and Consumer discretionary up by 0.82%, while Telecom down by 0.58% and Bankex down by 0.30% were the only losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 9.04%, HCL Tech up by 3.28%, Power Grid up by 2.63%, Mahindra & Mahindra up by 2.11% and Dr. Reddy's Lab up by 1.97%. On the flip side, SBI down by 2.17%, Bajaj Finserv down by 1.85%, Bajaj Finance down by 1.65%, Bharti Airtel down by 1.42% and ICICI Bank down by 0.86% were the top losers.

Meanwhile, in a move that would facilitate privatisation of India's second biggest oil refiner Bharat Petroleum Corp (BPCL), the government has permitted 100 per cent foreign investment under the automatic route in oil and gas PSUs which have received in-principle approval for strategic disinvestment. The government is privatising BPCL and selling its entire 52.98 per cent stake in the company.

According to the Department for Promotion of Industry and Internal Trade (DPIIT), a new clause has been added to the FDI policy for oil and natural gas sector. It said ‘Foreign investment up to 100 per cent under the automatic route is allowed in case an 'in-principle' approval for strategic disinvestment of a PSU has been granted by the government’. The decision regarding this was taken by the Union Cabinet last week.

Two out of the three companies that have put in an initial expression of interest (EoI) for buying out the government's entire 52.98 per cent stake in BPCL are foreign entities. The FDI limit in PSU-promoted oil refineries will continue at 49 per cent -- a limit that was set in March 2008. As of now, the government is selling the stake in only BPCL. Indian Oil Corporation (IOC), the nation's largest, is the only other oil refining and marketing company under direct government control. Hindustan Petroleum Corporation Ltd (HPCL) is now a subsidiary of state-owned Oil and Natural Gas Corporation (ONGC).

The CNX Nifty is currently trading at 15811.65, up by 33.20 points or 0.21% after trading in a range of 15744.85 and 15823.25. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 8.98%, Adani Ports & SEZ up by 3.54%, HCL Tech. up by 3.29%, Power Grid up by 2.72% and Mahindra & Mahindra up by 2.51%. On the flip side, SBI down by 2.16%, SBI Life Insurance down by 2.11%, Bajaj Finserv down by 2.01%, Bajaj Finance down by 1.84% and Bharti Airtel down by 1.44% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 577.71 points or 2.2% to 25,737.61, Nikkei 225 slipped 488.01 points or 1.76% to 27,294.41, Taiwan Weighted dropped 92.95 points or 0.53% to 17,309.86, KOSPI fell 37.17 points or 1.15% to 3,205.48 and Shanghai Composite declined 21.83 points or 0.64% to 3,389.89. On the flip side, Straits Times advanced 2.05 points or 0.06% to 3,182.66 and Jakarta Composite soared 14.84 points or 0.24% to 6,135.57.