Sensex, Nifty maintain gaining rally in late morning session

Positive trade continued over the Dalal Street in late morning session, with both Sensex and Nifty maintaining their gaining rally, despite negative cues from other Asian markets. Traders were positive, after Textiles Ministry Additional Secretary Vijoy Kumar Singh has said that the idea of Production Linked Incentive (PLI) Scheme, announced for textiles by the government, was to create huge employment opportunities and extend support to companies that were interested in scaling up business in the sector. He said the advantage of PLI Scheme is to invest in those projects, which are covered under the scheme for the products, and create huge employment and achieve production turnover for companies.

Besides, NRIDA is set to pilot smart solutions backed by digital innovations to modernize existing performance monitoring mechanisms and improve the service delivery capacity of Pradhan Mantri Gram Sadak Yojana (PMGSY), a flagship program of the Government of India.

On the global front, Asian markets were trading mostly in red, even after the total value of core machine orders in Japan was up a seasonally adjusted 0.9 percent in July, the Cabinet Office said on Wednesday - coming in at 859.7 billion yen. That missed expectations for an increase of 3.1 percent following the 1.5 percent contraction in June. On a yearly basis, core machine orders gained 11.1 percent - again shy of forecasts for an increase of 15.7 percent following the 18.6 percent increase in the previous month.

The BSE Sensex is currently trading at 58535.70, up by 288.61 points or 0.50% after trading in a range of 58272.82 and 58563.09. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.53%, while Small cap index was up by 0.82%.

The top gaining sectoral indices on the BSE were Telecom up by 2.49%, Utilities up by 2.39%, Power up by 2.01%, PSU up by 1.50% and Consumer Durables up by 1.49%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were NTPC up by 5.09%, Bharti Airtel up by 3.30%, Titan Co up by 3.01%, Power Grid up by 1.72% and HCL Tech up by 1.35%. On the flip side, Axis Bank down by 0.53%, HDFC Bank down by 0.41%, Ultratech Cement down by 0.33%, Bajaj Finance down by 0.26% and Nestle down by 0.26% were the top losers.

Meanwhile, Finance Ministry has permitted 11 states to borrow an additional amount of Rs 15,721 crore after these states achieved the capital expenditure target set for the June quarter. These states are Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Kerala, Madhya Pradesh, Manipur, Meghalaya, Nagaland, Rajasthan and Uttarakhand.

The Ministry stated ‘11 states...have achieved the target set by the Ministry of Finance for the capital expenditure in the 1st Quarter of 2021-22. As an incentive, these States have been granted permission by the Department of Expenditure to borrow an additional amount of Rs 15,721 crore.’ The additional open market borrowing permission granted is equivalent to 0.25 per cent of their Gross State Domestic Product (GSDP). Additional financial resources thus made available will help the States in pushing their capital expenditure further.

It said capital expenditure has a high multiplier effect, enhances the future productive capacity of the economy, and results in a higher rate of economic growth. Accordingly, out of the net borrowing ceiling (NBC) of 4 per cent of GSDP for the states for 2021-22, 0.50 per cent of GSDP was earmarked for incremental capital expenditure to be incurred by the States during 2021-22. The target for incremental capital expenditure for each state to qualify for this incremental borrowing was fixed by the Department of Expenditure.

The CNX Nifty is currently trading at 17459.60, up by 79.60 points or 0.46% after trading in a range of 17386.90 and 17467.55. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were NTPC up by 5.48%, ONGC up by 4.03%, Bharti Airtel up by 3.33%, Titan Co up by 3.06% and Power Grid up by 1.75%. On the flip side, BPCL down by 0.88%, Axis Bank down by 0.51%, Grasim Industries down by 0.49%, HDFC Bank down by 0.39% and Tata Consumer Products down by 0.37% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 279.57 points or 1.1% to 25,222.66, Nikkei 225 slipped 124.25 points or 0.41% to 30,545.85, Taiwan Weighted dropped 49.37 points or 0.28% to 17,385.53, Straits Times trembled 19.51 points or 0.63% to 3,060.86 and Jakarta Composite lost 11.84 points or 0.19% to 6,117.26. On the flip side, KOSPI rose 9.36 points or 0.3% to 3,158.19 and Shanghai Composite gained 9.80 points or 0.27% to 3,672.40.