Key gauges bounce back in late morning deals; Sensex reclaims 61K mark

Erasing all their initial losses, local bourses bounced back in to reclaim their crucial 61,000 (Sensex) and 18,150 (Nifty) levels as traders opted for bargain hunting. Huge buying in banking counters mainly helped markets to recapture their said psychological levels, led by gains in ICICI Bank and Axis Bank. ICICI Bank witnessed jubilation during the trade after reporting a 30 per cent year-on-year (YoY) jump in net profit in the July-September quarter (Q2FY22), aided by robust net interest income (NII) and other income as well as lower provisions. Traders also took some support with Industry chamber -- PHD Chamber of Commerce and Industry’s statement that it expects strong GDP growth in the coming quarters with the economic recovery gaining momentum. However, broader indices continued to trade under pressure led by selling IRCTC, Coforge and Info Edge (India).

The BSE Sensex is currently trading at 61019.43, up by 197.81 points or 0.33% after trading in a range of 60449.68 and 61404.99. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.48%, while Small cap index was down by 1.54%.

The few gaining sectoral indices on the BSE were Bankex up by 2.43%, Metal up by 0.20% and Capital Goods up by 0.07%, while Realty down by 1.90%, IT down by 1.70%, Consumer Discretionary Goods & Services down by 1.51%, TECK down by 1.34% and Consumer Durables down by 1.28% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 11.54%, Axis Bank up by 4.05%, SBI up by 1.36%, Mahindra & Mahindra up by 1.09% and Larsen & Toubro up by 0.98%. On the flip side, HCL Tech. down by 2.38%, Nestle down by 2.01%, Bajaj Auto down by 1.97%, Kotak Mahindra Bank down by 1.84% and Asian Paints down by 1.74% were the top losers.

Meanwhile, in order to boost the Indian textile industry by enabling the ease of doing business, bolstering exports and fuelling employment, the Union Minister Piyush Goyal has reviewed the Amended Technology Up-gradation Fund Scheme (ATUFS). Textile Minister Goyal and Minister for State for Textiles Darshana Jardosh reviewed the scheme with various ministries, departments, textiles industry associations and banks at the 5th Inter Ministerial Steering Committee (IMSC) meeting organised by the textile ministry.

Apart from fixing the timeline for conduct of IMSC meeting quarterly, some significant decisions to resolve pending issues include reducing the compliance burden by accepting only single certificate from the concerned bank instead of multiple documents regarding evidence of payment for claimed machineries. The decisions taken at the meeting also include the consideration of standalone embroidery machines with effect from inception of the ATUFS.

The Ministry of Textiles will simplify the procedure for joint inspection using a calibrated approach to linking joint inspect to subsidy support size by reducing burden on bracket lower than Rs 50 lakh instead of the current 100 per cent. Goyal said that despite the hindrances during the COVID-19 pandemic, the ministry and the office of textile commissioner have put serious efforts in resolving the policy constraints and settling of the claims. He mentioned that a special measure was introduced to ease liquidity flow in the industry by introducing an option for getting part subsidy released against the bank guarantee.

The CNX Nifty is currently trading at 18153.05, up by 38.15 points or 0.21% after trading in a range of 17968.50 and 18241.40. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 11.78%, Axis Bank up by 4.15%, ONGC up by 1.88%, SBI up by 1.61% and Cipla up by 1.13%. On the flip side, Wipro down by 2.73%, HCL Tech. down by 2.30%, Eicher Motors down by 2.20%, Divi's Lab down by 2.10% and Bajaj Auto down by 2.05% were the top losers.

Asian markets are trading mixed, KOSPI rose 15.93 points or 0.53% to 3,022.09, Shanghai Composite gained 14.88 points or 0.42% to 3,597.48, Jakarta Composite soared 12.08 points or 0.18% to 6,655.82 and Taiwan Weighted was up by 5.50 points or 0.03% to 16,894.24. On the flip side, Hang Seng decreased 0.12 points or 0% to 26,126.81, Straits Times trembled 3.59 points or 0.11% to 3,201.55 and Nikkei 225 was down by 204.44 points or 0.71% to 28,600.41.