Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the afternoon session, following gains in utilities, consumer discretionary and auto stocks. Healthy buying was observed in blue-chip stocks like Indusind Bank, HCL Tech and Axis Bank. Sentiments were upbeat as government data showed that India's retail inflation in August marginally eased to 5.3%, staying within Reserve Bank of India's comfort zone for a second month. Inflation in the food basket was 3.11% in August compared to 3.96% in the preceding month. On the sectoral front; NBFC stocks were in focus as ICRA Ratings in its report states that the asset under management of the non-banking financial company segment declined in Q1 of 2021-22 on lower disbursements and portfolio rundown. On the global front, Asian markets were trading mixed as they awaited US inflation data that could play a key role in determining when the Federal Reserve will start winding down its market-supporting monetary policy.

Back on street, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1973: 1103; while 177 shares remained unchanged. Currently, BSE Sensex is trading at 58361.40, up by 183.64 points or 0.32% after trading in a range of 58310.27 and 58482.62. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.20%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Utilities up by 1.40%, Consumer Discretionary up by 1.32%, Auto up by 1.17%, Power up by 0.91% and TECK was up by 0.85%, while Metal was down by 0.11% were the only losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.06%, HCL Tech up by 1.93%, Axis Bank up by 1.37%, Bajaj Auto up by 1.36% and Kotak Mahindra Bank was up by 1.15%. On the flip side, Hindustan Unilever down by 0.64%, Ultratech Cement down by 0.61%, HDFC down by 0.41%, HDFC Bank down by 0.28% and Asian Paints was down by 0.20% were the top losers.

Meanwhile, Union minister Jitendra Singh has said that the post-Covid future economy is going to be heavily dependent on technology. He said private model is no more an option but a necessity today. Therefore, the Council for Scientific and Industrial Research (CSIR) and industry must collaborate on an equal footing for the best and cost-effective outcomes.

Singh suggested that the CSIR must explore to incentivise and support 75 best start-ups, particularly in areas of green hydrogen, coal to methanol technology, smart mobility, telemedicine, digital health and artificial intelligence. He said the present Modi dispensation has removed scientific taboos and opened up the field to private players and start-ups. In the past, science and technology could not flourish because of the lack of resources but it is happening now and India is emerging as a leading global player since privatisation has been made possible by Prime Minister Narendra Modi.

The minister said the era of working in silos is over and asked the CSIR to work on theme-based projects in collaboration with industries for visible impact on the ground. He asked the CSIR to suitably identify the stakeholders in its mission areas like green hydrogen, carbon capture, coal gasification, fly ash technology, high altitude platforms for telecommunications, surveillance, remote sensing and disaster recovery, and sectors like drone technology and agri and pharmaceutical chemicals. He also asked to explore the emerging areas like additive manufacturing, chemicals for fab and high temperature steams for electrolysis.

The CNX Nifty is currently trading at 17409.60, up by 54.30 points or 0.31% after trading in a range of 17389.10 and 17438.55. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 2.29%, Indusind Bank up by 2.08%, HCL Tech up by 1.83%, Adani Ports up by 1.38% and Eicher Motors was up by 1.35%. On the flip side, Hindalco down by 0.74%, Hindustan Unilever down by 0.71%, Ultratech Cement down by 0.68%, Coal India down by 0.52% and HDFC was down by 0.45% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 222.73 points or 0.73% to 30,670.10, KOSPI rose 20.97 points or 0.67% to 3,148.83, Jakarta Composite soared 30.54 points or 0.5% to 6,118.70 and Straits Times was up by 6.27 points or 0.2% to 3,080.58.

On the other hand; Shanghai Composite declined 50.46 points or 1.36% to 3,664.91, Hang Seng decreased 305.59 points or 1.18% to 25,508.22 and Taiwan Weighted was down by 11.41 points or 0.07% to 17,434.90.