Benchmarks continue to trade in green in morning deals

Indian equity benchmarks continued to trade in green in morning deals, as expectation of a better September quarter earnings kept buying intact in most counters. Traders took some support with RBI Governor Shaktikanta Das’ statement that the RBI is looking for growth signs to become entrenched and show signs of durability and closely 'watchful' of evolving dynamics. He said the RBI is studying developments around inflation and growth that are dynamic and are evolving. Traders also took a note of the World Bank’s report that India’s economy is expected to grow by 8.3 per cent in the fiscal year 2021-22, buoyed by an increase in public investment and incentives to boost manufacturing, though it is less than the previous projection early this year before the country was hit by the second wave of the COVID-19 pandemic. Sectorally, Power stocks remained in focus as power ministry data showed that Power consumption dipped by nearly 2 per cent or by 72 million units (MU) to 3,828 MU on Saturday compared to 3,900 MU on Friday, showing slight improvement in supply situation across the country amid coal shortage crisis. On the global front, Asian markets were trading mostly in green even as traders continue to express concerns that the coronavirus situation in the region and other countries, particularly in the U.S., could dent the pace of global economic recovery.

The BSE Sensex is currently trading at 60233.59, up by 174.53 points or 0.29% after trading in a range of 59811.42 and 60296.09. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Auto up by 2.78%, Utilities up by 2.42%, Power up by 2.33%, Realty up by 1.45% and Industrials up by 1.39%, while IT down by 1.92%, TECK down by 1.91% and Telecom down by 0.85% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.72%, Maruti Suzuki up by 3.26%, Kotak Mahindra Bank up by 2.75%, Power Grid Corporation up by 2.21% and Mahindra & Mahindra up by 1.87%. On the flip side, TCS down by 5.48%, Tech Mahindra down by 1.69%, Bharti Airtel down by 1.03%, HCL Technologies down by 0.57% and Infosys down by 0.28% were the top losers.

Meanwhile, Former Reserve Bank Governor C Rangarajan has said that India becoming a $5 trillion economy by 2025 is impossible under the current circumstance. He said ‘India’s economy was $2.7 trillion strong in 2019. At the end of March 22, we will still be at the same level.’ To go from $2.7 trillion to $5 trillion, he said the country needs to grow at 9 percent per annum for the next five years.

Rangarajan said attempts should be made to curb the adverse impact of a third wave of COVID-19, if it happens and both the coverage of vaccination and the pace of investment in health infrastructure should be accelerated within the strategy of expanding the overall infrastructure investment. He also has stated that in order to achieve the $5 trillion economy, growth which is the answer to many of socioeconomic problems, should therefore become the undivided concern of the government and equity which is equally important will be a distant dream unless it is supported by high growth spurred by reforms.

As revenues improve, Former Reserve Bank Governor opined that expenditures can be increased even as there is no need to reduce the fiscal deficit below the budgeted level of 6.8 per cent of GDP and fiscal consolidation may start from the next financial year. He further said India indeed needs a faster rate of growth to make up for the loss of output in the previous two years from the trend rate and must lay the foundation for a faster growth in this year itself. 

The CNX Nifty is currently trading at 17968.80, up by 73.60 points or 0.41% after trading in a range of 17839.10 and 17986.55. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 7.90%, Coal India up by 4.35%, NTPC up by 3.47%, Maruti Suzuki up by 3.34% and Kotak Mahindra Bank up by 2.72%. On the flip side, TCS down by 5.66%, Tech Mahindra down by 2.02%, Wipro down by 1.06%, Bharti Airtel down by 1.01% and HCL Technologies down by 0.80% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 553.52 points or 2.23% to 25,391.37, Nikkei 225 surged 426.94 points or 1.52% to 28,475.88, Shanghai Composite gained 13.59 points or 0.38% to 3,605.76 and Straits Times advanced 3.43 points or 0.11% to 3,116.24.

On the flip side, Jakarta Composite lost 19.46 points or 0.3% to 6,462.31.