Sensex, Nifty add some gains in late morning session

Indian equity benchmarks added some gains in late morning session, with both Sensex and Nifty trading higher, despite negative cues from other Asian markets. Traders were positive, as Department of Investment and Public Asset Management Secretary Tuhin Kanta Pandey said that disinvestment of public sector companies is back on track after the COVID-induced setbacks, and DIPAM is aiming to conclude a host of transactions by March-end. Besides, Federation of Hotel and Restaurant Associations of India said it has urged the finance ministry to notify the loan guarantee scheme for COVID affected sectors.

On the global front, Asian markets were trading mostly in red, after producer prices in Japan were up 5.6 percent on year in July, the Bank of Japan said on Thursday - well above expectations for 5.0 percent, which would have been unchanged from the June reading. On a monthly basis, producer prices spiked 1.1 percent - again well above estimates for 0.5 percent and up from 0.6 percent in the previous month.

The BSE Sensex is currently trading at 54737.90, up by 211.97 points or 0.39% after trading in a range of 54536.65 and 54744.25. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.76%, while Small cap index was up by 1.70%.

The top gaining sectoral indices on the BSE were Utilities up by 1.78%, Industrials up by 1.34%, Power up by 1.29%, Capital Goods up by 1.17% and Realty up by 1.13%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.68%, Power Grid up by 2.98%, Larsen & Toubro up by 1.63%, Bajaj Auto up by 1.16% and HCL Tech up by 1.13%. On the flip side, Indusind Bank down by 0.60%, SBI down by 0.30%, Nestle down by 0.30%, Axis Bank down by 0.30% and Sun Pharma down by 0.26% were the top losers.

Meanwhile, Crisil Research in its latest report has said that uneven distribution of monsoon rainfall is likely to impact the kharif sowing, which is expected to fall one per cent as compared to last year. It added ‘in our view, overall kharif sowing is expected to remain one per cent lower year-on-year.’ It also said ‘Cumulative sowing till August 8 was two per cent lower year-on-year, attributable to the advancement in sowing last year, and three per cent higher than the average of the past five years’.

The report noted that the southwest monsoon accelerated to close the deficit in long period average (LPA) of rainfall from seven per cent as on July 12 to just four per cent as on August 8, after stalling from June-end to mid-July. However, the India Meteorological Department forecasts that monsoon will remain normal for the rest of the season. During the recovery phase (commencing July 13), the country received rainfall two per cent lower than the LPA as on August 8; and the rainfall was higher by 11 per cent and 12 per cent in north-west India and south peninsula region, respectively. The central and east & northeast regions lagged 4 per cent and 20 per cent lower rains, respectively.

Gujarat, which accounts for 40 per cent and 20 per cent of the total groundnut and cotton acreage, and Odisha, at 8 per cent of the total paddy acreage, are at a cumulative deficit of 43 per cent and 28 per cent, respectively. In contrast, Telangana, Andhra Pradesh and Haryana have received excessive rainfall. The report noted with the Indian agriculture largely rainfall-dependent, the now-on, now-off monsoon this year has shifted the sowing from much-expected oilseeds (groundnut and soybean) to maize and paddy for kharif.

The CNX Nifty is currently trading at 16347.25, up by 65.00 points or 0.40% after trading in a range of 16286.90 and 16348.90. There were 38 stocks advancing against 11 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Tech Mahindra up by 3.59%, Power Grid up by 2.86%, Larsen & Toubro up by 1.81%, Coal India up by 1.49% and Tata Motors up by 1.46%. On the flip side, Eicher Motors down by 1.41%, Indusind Bank down by 0.69%, SBI down by 0.42%, Nestle down by 0.29% and Sun Pharma down by 0.25% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted dropped 34.79 points or 0.2% to 17,192.39, Nikkei 225 slipped 28.75 points or 0.1% to 28,041.76, Hang Seng decreased 23.24 points or 0.09% to 26,636.92, KOSPI fell 9.41 points or 0.29% to 3,211.21 and Shanghai Composite declined 4.35 points or 0.12% to 3,528.27. On the flip side, Straits Times advanced 11.27 points or 0.35% to 3,191.27 and Jakarta Composite soared 33.13 points or 0.54% to 6,121.54.