Equity markets extend upward trend in late afternoon session

Indian equity markets extended their upward momentum in late afternoon session, with the Sensex and the Nifty gaining above 300 and 100 points, respectively. Bharti Airtel, Bajaj Finserv and Bajaj Finance were the prime gainers among heavy-weights. Traders remain energized after private report stated that India's economy likely rebounded in the April-June quarter from a deep slump last year helped by improved manufacturing and in spite of a devastating second wave of COVID-19 cases. Besides, Department of Expenditure, Ministry of Finance has released an amount of Rs. 13,385.70 crore to 25 States for providing grants to the Rural Local Bodies. This Grant-in-aid is the 1st instalment of Tied grants of the year 2021-22. The grants have been released as per the recommendations of the 15th Finance Commission.

On the global front, Asian markets were trading mostly in green buoyed by another record Wall Street close that’s been guided by supportive Fed policy and rebounding corporate earnings. European markets were trading mostly in green on course for their seventh straight month of gains, as hopes for more policy support overshadowed economic risks from a surge in COVID-19 cases caused by the Delta variant globally.

The BSE Sensex is currently trading at 57214.25, up by 324.49 points or 0.57% after trading in a range of 56859.10 and 57329.55. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.22%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Telecom up by 3.28%, Utilities up by 1.35%, Power up by 1.02%, Healthcare up by 1.01% and Consumer Durables was up by 0.97%, while Realty down by 0.25%, Energy down by 0.11%, Bankex down by 0.11% and Auto was down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.62%, Bajaj Finserv up by 2.97%, Bajaj Finance up by 2.06%, Asian Paints up by 1.94% and Ultratech Cement up by 1.70%. On the flip side, Nestle down by 1.71%, Indusind Bank down by 1.26%, Mahindra & Mahindra down by 0.74%, Reliance Industries down by 0.63% and Axis Bank down by 0.61% were the top losers.

Meanwhile, the Department of Expenditure, Ministry of Finance has released an amount of Rs. 13,385.70 crore to 25 States for providing grants to the Rural Local Bodies.  This Grant-in-aid is the 1st installment of Tied grants of the year 2021-22. The grants have been released as per the recommendations of the 15th Finance Commission.

Out of the total Grant-in-aid allocated for Panchayati Raj institutions, 60 percent is ‘Tied Grant’.  It’s earmarked for national priorities like drinking water supply, rainwater harvesting and sanitation. Remaining 40 percent is ‘Untied Grant’ and is to be utilized at the discretion of the Panchayati Raj institutions for location specific felt needs, except for payment of salaries.

As per the notification, the States are required to transfer the grants to the Rural local bodies within 10 working days of their receipt from the Union Government.  Any delay beyond 10 working days requires the State Governments to release the grants with interest.

The CNX Nifty is currently trading at 17038.45, up by 107.40 points or 0.63% after trading in a range of 16915.85 and 17060.50. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.89%, Bajaj Finserv up by 3.17%, Eicher Motors up by 3.02%, Hindalco up by 2.51% and Bajaj Finance up by 2.44%. On the flip side, Tata Motors down by 1.90%, Nestle down by 1.68%, Indusind Bank down by 1.36%, Reliance Industries down by 0.59% and Mahindra & Mahindra down by 0.54% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 339.45 points or 1.33% to 25,878.99, Nikkei 225 surged 300.25 points or 1.08% to 28,089.54, Taiwan Weighted strengthened 93.77 points or 0.54% to 17,490.29, KOSPI rose 55.08 points or 1.75% to 3,199.27, Shanghai Composite gained 15.79 points or 0.45% to 3,543.94 and Jakarta Composite was up by 5.40 points or 0.09% to 6,150.30. On the flip side, Straits Times was down by 41.29 points or 1.33% to 3,060.82.

European markets were trading mostly in green, France’s CAC increased 3.35 points or 0.05% to 6,690.65 and Germany’s DAX was up by 80.02 points or 0.5% to 15,967.33. On the flip side, UK’s FTSE 100 was down by 10.08 points or 0.14% to 7,137.93.