Bulls hold tight grip over Dalal Street

Bulls were holding a tight grip over the Dalal Street in late morning session, with both Sensex and Nifty trading higher, despite negative cues from other Asian markets. Domestic sentiments remained positive, after the country's foreign exchange reserves rose by USD 2.039 billion to USD 639.516 billion in the week ended October 8, according to RBI data. Besides, describing the Indian government's response to the COVID-19 situation as ''swift and substantial'', the International Monetary Fund (IMF) has said the country continued with labour reforms and privatization despite the pandemic.

On the global front, Asian markets were trading mostly in red, after China's gross domestic product expanded 4.9 percent on year in the third quarter of 2021, the National Bureau of Statistics said - missing forecasts for 5.2 percent and down sharply from 7.9 percent in the three months prior. On a seasonally adjusted quarterly basis, GDP rose just 0.2 percent - again missing expectations for 0.5 percent and down from the downwardly revised 1.2 percent growth in the previous three months (originally 1.3 percent).

The BSE Sensex is currently trading at 61761.61, up by 455.66 points or 0.74% after trading in a range of 61624.65 and 61894.33. 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 1.53%, while Small cap index was up by 1.17%.

The top gaining sectoral indices on the BSE were Metal up by 4.47%, Power up by 3.42%, Utilities up by 3.36%, Basic Materials up by 2.66% and PSU up by 2.17%, while Healthcare down by 0.35% was the only losing index on BSE.

The top gainers on the Sensex were Titan Co up by 3.02%, Tata Steel up by 3.01%, Infosys up by 3.01%, Maruti Suzuki up by 2.28% and ICICI Bank up by 2.13%. On the flip side, HCL Tech. down by 1.66%, Asian Paints down by 1.29%, Bajaj Auto down by 1.09%, Dr. Reddy's Lab down by 0.91% and Mahindra & Mahindra down by 0.53% were the top losers.

Meanwhile, Union Finance Minister Nirmala Sitharaman has said that as an accommodative fiscal stance is being maintained in the near-term to support the economy, the government remains committed to bring the economy on the fiscal consolidation path in the near-to-medium term. She said the Union government fiscal deficit is budgeted at 6.8 percent of GDP in the current year and it will be reduced to 4.5 percent of GDP by 2025-26.

The minister has stated that next year's budget will contain medium-term macroeconomic projections and will include revised Fiscal Responsibility and Budget Management Act (FRBM). She also said the Indian government is ready to provide additional capital to Public Sector Banks (PSBs) as and when needed and the trajectory of inflation is also shifting down more favourably than anticipated.

Sitharaman further said revenue mobilisation would be a key element of medium term fiscal strategy. Streamlining with e-invoicing, Goods and Services Tax (GST) audits, closer scrutiny of returns, and rate rationalisation are all expected to augment GST revenues; rationalised corporate income tax rates are also expected to improve tax compliance and tax buoyancy. She pointed out that the thrust on capital expenditure in infrastructure, including projects on health, education and skill development will continue. She added that enhanced public investment in infrastructure is expected to crowd in private investment and raise potential output and medium-term growth.

The CNX Nifty is currently trading at 18493.55, up by 155.00 points or 0.85% after trading in a range of 18445.30 and 18524.40. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 6.23%, Tata Motors up by 4.87%, JSW Steel up by 3.89%, Titan Co up by 3.19% and Infosys up by 2.93%. On the flip side, HCL Tech. down by 1.68%, Asian Paints down by 1.36%, Bajaj Auto down by 1.20%, Dr. Reddy's Lab down by 0.95% and Cipla down by 0.83% were the top losers.

Asian markets were trading mostly in red; KOSPI fell 6.57 points or 0.22% to 3,008.49, Taiwan Weighted dropped 43.15 points or 0.26% to 16,738.04, Shanghai Composite declined 12.41 points or 0.35% to 3,559.96, Straits Times trembled 1.67 points or 0.05% to 3,172.24, Nikkei 225 slipped 70.75 points or 0.24% to 28,997.88, Hang Seng decreased 77.39 points or 0.31% to 25,253.57. On the flip side, Jakarta Composite soared 33.49 points or 0.5% to 6,666.83.