Bulls hold grip over Dalal Street in late morning session

Bulls were holding their tight grip over the Dalal Street in late morning session, with both Sensex and Nifty trading on a strong note. Positive cues from other Asian markets helped key indices to maintain gaining rally. Traders were positive, as the Reserve Bank of India (RBI) informed that India's growth rate has seen improvement, and the projection for Gross Domestic Product (GDP) for the financial year (FY) of 2021-22 has been retained at 9.5 per cent. Some support also came after the Centre released a total of Rs 1,15,000 crore to states and union territories in the current financial year as back-to-back loan to meet the shortfall in Goods and Services Tax (GST) compensation.

On the global front, Asian markets were trading mostly in green, after Malaysia's unemployment rate declined in August. The data from the Department of Statistics showed that the jobless rate fell to 4.6 percent in August from 4.8 percent in July. In the same month last year, unemployment rate was 4.7 percent.

The BSE Sensex is currently trading at 60123.06, up by 445.23 points or 0.75% after trading in a range of 59830.93 and 60212.30. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.38%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were IT up by 2.36%, TECK up by 2.02%, Industrials up by 0.88%, Capital Goods up by 0.78% and Energy up by 0.74%, while Realty down by 2.28%, Power down by 0.78%, Utilities down by 0.63%, FMCG down by 0.28% and PSU down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.22%, Infosys up by 2.15%, Tata Steel up by 1.97%, HCL Tech. up by 1.89% and Tech Mahindra up by 1.89%. On the flip side, NTPC down by 1.47%, Hindustan Unilever down by 0.98%, Titan Co down by 0.63%, Maruti Suzuki down by 0.33% and Power Grid down by 0.32% were the top losers.

Meanwhile, Chief Economic Adviser (CEA) K V Subramanian has said that the focus of the government policies in the last seven years has been on enabling competition in the economy. He expressed hope India will witness double-digit growth in the current fiscal year (FY22) aided by a prudent mix of supply and demand side measures undertaken by the government.

He mentioned ‘with all these reforms, India is poised for high growth and inclusive growth through job creation especially in the organised sector going forward, our projection is that this year there is a high likelihood we could have double-digit growth. Next year we anticipate between 6.5-7 per cent.’ As the impact of reforms starts taking in, the potential growth would accelerate beyond 7 per cent, he said, adding, ‘given the seeds that we have sown, (they) should fructify in this decade. It should be a decade of inclusive growth for India.’

Further, he said the main idea behind all the policy measures-labour market reforms, farm sector reforms, the enterprise policy focus on the private sector and the policy of asset monetization- is to enable competition, especially, in factor markets. Besides, he stated ‘If you recall in 2014, the startup economy was gasping for breath, because of the crony lending that would actually be antithetical to competition in the economy…fair competition is actually something that is really important…that is why we are seeing these 100 plus unicorns that has been created.’

The CNX Nifty is currently trading at 17919.70, up by 129.35 points or 0.73% after trading in a range of 17848.15 and 17941.85. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.48%, TCS up by 2.46%, Infosys up by 2.35%, Tech Mahindra up by 1.96% and Tata Steel up by 1.90%. On the flip side, Coal India down by 2.99%, NTPC down by 1.44%, Tata Consumer Products down by 0.91%, Hindustan Unilever down by 0.83% and Divi's Lab down by 0.82% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 477.29 points or 1.72% to 28,155.50, Jakarta Composite soared 53.23 points or 0.83% to 6,469.63, Shanghai Composite gained 11.79 points or 0.33% to 3,579.96 and Straits Times advanced 3.43 points or 0.11% to 3,104.58. On the flip side, KOSPI fell 10.39 points or 0.35% to 2,949.07, Hang Seng decreased 65.27 points or 0.26% to 24,636.46 and Taiwan Weighted dropped 77.68 points or 0.46% to 16,636.18.