Key indices remain in green morning deals

Indian equity benchmarks trimmed some gains but continued to trade in green in morning deals, led by gains in Energy, Realty and Consumer Durables stocks. Traders took some support with a private report that the government's collections from levy of excise duty on petroleum products have jumped 48 per cent in the first four months of the current fiscal year, with the incremental mop-up being 3-times of the repayment liability of legacy oil bonds in the full fiscal. Traders also took note of member of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) -- Shashanka Bhide’s statement that revival of the Indian economy would be sustained if the COVID-19 pandemic is under control.  Bhide added that prioritising expenditure to get maximum employment and income effects while controlling the pandemic are necessary in the short term.  Strong trend in other Asian markets also boosted the bullish sentiment among investors. Asian shares edged higher on Monday as a disappointing US payrolls report promised to keep policy there super-loose for longer, but also clouded the outlook for global growth and inflation.

The BSE Sensex is currently trading at 58323.05, up by 193.10 points or 0.33% after trading in a range of 58294.12 and 58515.85. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Energy up by 2.31%, Realty up by 1.89%, Consumer Durables up by 0.85%, Capital Goods up by 0.73% and Auto up by 0.72% while, Metal down by 0.44%, Bankex down by 0.30%, Healthcare down by 0.19% and PSU down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.26%, Bajaj Auto up by 1.63%, Hindustan Unilever up by 1.13%, Maruti Suzuki up by 1.05% and HCL Technologies up by 0.68%. On the flip side, Tata Steel down by 0.97%, Power Grid Corporation down by 0.83%, NTPC down by 0.73%, HDFC Bank down by 0.70% and Kotak Mahindra Bank down by 0.63% were the top losers.

Meanwhile, Textiles Minister Piyush Goyal has said that the sector will achieve $44 billion exports target in 2021-22, and in the next five years, both the ministry and the industry have agreed to aim for $100 billion outbound shipments. He also said export has to stand on its own feet and has to be independently viable as demand for subsidies would not always help.

Goyal has stated that the Production Linked Incentive Scheme for technical textiles and man-made fibre segment will be approved soon by the Union Cabinet, a move which would give a boost to domestic manufacturing and exports. He also noted that the proposed Mega Investment Textiles Parks (MITRA) scheme, under which seven such parks will be set up in the country over the next three years, is at an advanced stage of approval. This scheme was announced in the Union Budget 2021-22.

On free trade pacts, the minister said India is interacting with different nations to expedite FTAs or PTAs (preferential trade agreements). This engagement has been ongoing with the UK, EU, UAE, Australia, among others. Further, he said they are working with the finance ministry on interest equalisation scheme and enhancement of insurance cover.

The CNX Nifty is currently trading at 17373.10, up by 49.50 points or 0.29% after trading in a range of 17366.65 and 17429.55. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.25%, Grasim Industries up by 2.36%, Bajaj Auto up by 1.40%, Shree Cement up by 1.22% and Maruti Suzuki up by 1.09%. On the flip side, Tata Steel down by 0.94%, Power Grid Corp down by 0.83%, HDFC Bank down by 0.79%, Coal India down by 0.72% and Indian Oil Corporation down by 0.71% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 532.10 points or 1.83% to 29,660.21, Hang Seng increased 132.12 points or 0.51% to 26,034.11, Taiwan Weighted strengthened 48.93 points or 0.28% to 17,565.85, Shanghai Composite gained 36.58 points or 1.02% to 3,618.31 and Straits Times advanced 8.92 points or 0.29% to 3,092.77.

On the flip side, KOSPI fell 7.50 points or 0.23% to 3,193.56 and Jakarta Composite lost 16.97 points or 0.28% to 6,109.95.