Key indices add gains in morning deals

Indian equity benchmarks added gains in morning deals, on the back of buying in Realty, banking and Metal stocks. Domestic sentiment remain buoyed with Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that the world is witnessing initial signs of recovery from the impact of coronavirus (Covid-19) pandemic. He said the Covid pandemic has provided a new impetus to technology-driven companies such as fintech, edtech and healthtech which are likely to see increased funding activity in the coming years. Traders also took a note of Union Minister Nitin Gadkari’s statement that India is committed to an eminently achievable clean energy-based economy, and added that the country will soon have a policy for flex-fuel engines. Meanwhile, Commerce and Industry Minister Piyush Goyal launched the National Single Window System for businesses and said the portal will usher in freedom from the legacy of running to government offices for approvals and registrations.

On the global front, Asian markets were trading mostly in green, after the Federal Reserve signaled it may begin easing its extraordinary support measures for the economy later this year. Back home, on the sectoral front, Oil & Gas industry’s stocks were in focus as the government in its latest data showed that India's crude oil production fell 2.3 per cent in August but natural gas output rose by more than a fifth on the back of output from KG-D6 fields of Reliance-BP.

The BSE Sensex is currently trading at 59483.12, up by 555.79 points or 0.94% after trading in a range of 59243.15 and 59563.21. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 1.13%.

The top gaining sectoral indices on the BSE were Realty up by 4.74%, Bankex up by 1.73%, PSU up by 1.53%, Metal up by 1.44% and Oil & Gas up by 1.36%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.54%, Axis Bank up by 2.52%, SBI up by 2.26%, Indusind Bank up by 2.10% and ICICI Bank up by 1.76%. On the flip side, Dr. Reddy's Lab down by 0.37%, ITC down by 0.23%, Ultratech Cement down by 0.16% and TCS down by 0.05% were the top losers.

Meanwhile, Reserve Bank of India’s Governor Shaktikanta Das has pitched for higher investment in infrastructure and reforms in labour and product markets to ensure sustainable growth and generate employment opportunities post-pandemic.

Noting that the pandemic has affected the poor and the vulnerable more in emerging and developing countries, Das said ‘our endeavour should be to ensure livable and sustainable growth in the post-pandemic future. Restoring the durability of private consumption, which has remained historically the mainstay of aggregate demand will be very crucial going forward’. He also said more importantly, sustainable growth should entail meeting on macro fundamentals via medium-term investments, sound financial systems and structural reforms.

Das has stated that towards this objective, a big push to investment in healthcare, education, innovation, physical and digital infrastructure will be required. He said ‘we should also continue with further reforms in labour and product markets to encourage competition and dynamism, and to benefit from the pandemic induced opportunities’.

The CNX Nifty is currently trading at 17712.60, up by 165.95 points or 0.95% after trading in a range of 17646.55 and 17732.95. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.82%, Tata Motors up by 2.63%, Bajaj Finserv up by 2.52%, Axis Bank up by 2.31% and Indusind Bank up by 2.24%. On the flip side, HDFC Life Insurance down by 0.69%, Dr. Reddy's Lab down by 0.38%, ITC down by 0.37%, Shree Cement down by 0.27% and UPL down by 0.23% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 178.51 points or 0.74% to 24,400.05, Taiwan Weighted strengthened 173.08 points or 1.02% to 17,098.90, Straits Times advanced 27.10 points or 0.89% to 3,075.15, Jakarta Composite soared 26.05 points or 0.43% to 6,134.32 and Shanghai Composite gained 22.30 points or 0.61% to 3,650.79.

On the flip side, KOSPI fell 11.93 points or 0.38% to 3,128.58.