Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the noon session, following gains in Industrials and Power stocks. Healthy buying was observed in blue-chip stocks like Tech Mahindra, Power Grid and Larsen & Toubro. Sentiments remained upbeat with Prime Minister Narendra Modi’s statement that the country's economic growth is picking up pace again and the domestic industry needs to enhance its risk-taking appetite. Noting the recent reforms taken by the government, he said that bringing reforms is a matter of conviction for his government, which is ready to take all risks in the national interest. Additional support came as Commerce Secretary BVR Subrahmanyam said the country's merchandise exports are expected to touch $1 trillion by 2027-28 and the government has laid down a road map, including district as an export hub scheme, to achieve that number. On the global front, Asian markets were trading mostly in red as caution set in among investors after banks and industrial companies helped lift stocks mostly higher on Wall Street.

Back home, mid and small cap companies were in focus as BSE introduced new surveillance rules called the ‘Add-on Price Band Framework’. Under this framework, certain securities would be subjected to weekly, monthly and quarterly price limits in addition to their daily price bands. The exchange clarified on framework will apply to BSE-exclusive securities in groups X, XT, Z, ZP, ZY and Y. Moreover, the securities should have a price of Rs 10 and more as on the review date and the market capitalisation of the security should be less than Rs 1,000 crore.

The BSE Sensex is currently trading at 54736.19, up by 210.26 points or 0.39% after trading in a range of 54536.65 and 54758.80. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.58%, while Small cap index was up by 1.67%.

The top gaining sectoral indices on the BSE were Utilities up by 1.82%, Industrials up by 1.40%, Power up by 1.36%, Capital Goods up by 1.20% and IT was up by 1.11%, while Consumer Durables was down by 0.12% was the only losing index on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.73%, Power Grid up by 3.44%, Larsen & Toubro up by 1.62%, HCL Tech up by 1.30% and Bajaj Finance was up by 1.02%. On the flip side, Indusind Bank down by 1.30%, Axis Bank down by 0.44%, SBI down by 0.34%, Maruti Suzuki down by 0.27% and Sun Pharma was down by 0.22% were the top losers.

Meanwhile, Federation of Hotel and Restaurant Associations of India (FHRAI) has urged the finance ministry to notify the loan guarantee scheme for COVID affected sectors. In June, Finance Minister Nirmala Sitharaman had announced a relief package targeting healthcare, tourism, exports and job creation to support the economy that is struggling to recover from the pandemic's second wave. According to the package, loan guarantees worth Rs 1.1 lakh crore will be offered to COVID-affected sectors.

According to FHRAI, it has been over a month since the announcement of the scheme, but there has been no notification by the finance ministry yet. The association claimed that neither the operational guidelines nor any other details of the scheme have been announced by the ministry so far. However, FHRAI said the loan guarantee scheme that was introduced simultaneously for the health sector was notified and the necessary guidelines have been introduced by the National Credit Guarantee Trustee Company (NCGTC).

It further said that the Hospitality sector is one of the worst affected sectors by the pandemic. But the government's negligence really compels it to doubt the seriousness in its approach towards the industry's hardships. The hospitality industry has faced severest restrictions and lockdowns, protocols, and suffered maximum losses during the last sixteen months due to COVID-19. The unprecedented second wave has caused a strong ripple effect that has destroyed the entire hospitality ecosystem in the country.

The CNX Nifty is currently trading at 16354.05, up by 71.80 points or 0.44% after trading in a range of 16286.90 and 16354.70. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.75%, Power Grid up by 3.60%, Tata Motors up by 2.59%, Larsen & Toubro up by 2.12% and HCL Tech was up by 1.44%. On the flip side, Eicher Motors down by 2.40%, Indusind Bank down by 1.10%, SBI down by 0.33%, Axis Bank down by 0.29% and Divi's Lab was down by 0.24% were the top losers.

Asian markets were trading mostly in red, Taiwan Weighted dropped 7.24 points or 0.04% to 17,219.94, KOSPI fell 12.24 points or 0.38% to 3,208.38, Shanghai Composite declined 6.26 points or 0.18% to 3,526.36, Hang Seng decreased 146.74 points or 0.55% to 26,513.42 and Nikkei 225 was down by 55.49 points or 0.2% to 28,015.02.

On the other hand, Straits Times advanced 10.34 points or 0.33% to 3,190.34 and Jakarta Composite was up by 38.00 points or 0.62% to 6,126.41.