Markets continue gaining momentum in late afternoon session

Indian equity markets continued their gaining momentum in late afternoon session, with both Sensex and Nifty gaining above 600 and 180 points, respectively. The broader indices, BSE Mid cap index and Small cap index were trading in green. Sentiment remained positive even after Foreign portfolio investors (FPI) have turned net sellers in the capital markets in October so far, reversing the trend of net investments in the previous two months, due to depreciation in the rupee and global factors. FPIs have pulled out Rs 1,472 crore from capital markets on a net basis in the current month so far. Sector wise, power sector remained in focused, as power ministry in its latest data has showed that India's power consumption grew 3.35 per cent in the first half of October to 57.22 billion units (BU), showing recovery amid coal shortage at electricity generation plants.

On the global front, Asian markets were trading mostly in red, as China's gross domestic product expanded 4.9 percent on year in the third quarter of 2021, missing forecasts for 5.2 percent and down sharply from 7.9 percent in the three months prior. European markets were trading lower, as Eurozone visible trade surplus for August decreased from a year ago, defying expectations for an improvement.

The BSE Sensex is currently trading at 61923.91, up by 617.96 points or 1.01% after trading in a range of 61624.65 and 61963.07. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.18%, while Small cap index was up by 0.90%.

The top gaining sectoral indices on the BSE were Metal up by 4.75%, Basic Materials up by 2.73%, Utilities up by 2.58%, Power up by 2.48% and PSU was up by 2.14%, while Healthcare down by 0.55%, Telecom down by 0.33% and Consumer Discretionary was down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were Infosys up by 3.74%, Tata Steel up by 3.22%, Tech Mahindra up by 2.93%, ICICI Bank up by 2.86% and Maruti Suzuki up by 2.40%. On the flip side, HCL Tech down by 2.13%, Mahindra & Mahindra down by 1.63%, Dr. Reddy's Lab down by 1.41%, Bajaj Auto down by 1.40% and Asian Paints down by 1.33% were the top losers.

Meanwhile, the International Monetary Fund (IMF) in its latest report has described the Indian government's response to the COVID-19 situation as 'swift and substantial', adding that the country continued with labour reforms and privatization despite the pandemic.

The IMF in its report based on 'consultations' among members, however, sounded a note of caution saying that the economic outlook remains 'clouded' due to pandemic-related uncertainties, contributing to both downside and upside risks.

IMF further said that a persistent negative impact of COVID-19 on investment and other growth drivers could prolong the economic recovery. Besides, the IMF has projected India's economic growth at 9.5 percent in FY2021-22 and 8.5 percent in 2022-23. Headline inflation is projected at 5.6 percent in 2021-22, amid elevated price pressures.

The CNX Nifty is currently trading at 18524.80, up by 186.25 points or 1.02% after trading in a range of 18445.30 and 18543.15. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.19%, JSW Steel up by 4.63%, Infosys up by 3.77%, Tata Steel up by 3.43% and Ultratech Cement up by 2.91%. On the flip side, HCL Tech down by 2.36%, Mahindra & Mahindra down by 1.68%, Dr. Reddy's Lab down by 1.48%, Bajaj Auto down by 1.41% and Asian Paints down by 1.31% were the top losers.

Asian markets were trading mostly in red, Taiwan Weighted dropped 75.73 points or 0.45% to 16,705.46, Nikkei 225 slipped 43.17 points or 0.15% to 29,025.46, KOSPI fell 8.38 points or 0.28% to 3,006.68, Shanghai Composite declined 4.23 points or 0.12% to 3,568.14 and Straits Times was down by 1.01 points or 0.03% to 3,172.90. On the flip side, Jakarta Composite soared 25.43 points or 0.38% to 6,658.77 and Hang Seng was up by 78.79 points or 0.31% to 25,409.75.

European markets were trading lower, UK’s FTSE 100 decreased 13.08 points or 0.18% to 7,220.95, France’s CAC decreased 48.46 points or 0.72% to 6,679.06 and Germany’s DAX was down by 70.95 points or 0.46% to 15,516.41.