Key gauges remain in green terrain in morning deals

Domestic stock markets trimmed some gains but continued to trade in green terrain in morning deals, on the back of firm global cues. Traders took some support with Union minister Amit Shah’s statement that policies were framed after hours of brainstorming and studying all the aspects in order to bring back pre-pandemic levels of economic growth. He also said the policies which became hurdles in bringing industry, affected 'Make In India' or obstructed 'Atmanirbhar Bharat' were changed during the coronavirus period.  Some solace also came with Reserve Bank of India Governor Shaktikanta Das’ statement that the country can become a ‘gross driver’ of the world economy if all stakeholders in the banking sector work together. However, gains remained capped as traders remained on sidelines ahead of the consumer price index (CPI) data to be released later in the day. Meanwhile, the government has said that electronics production in the country grew at a compound annual growth rate of 17 per cent in the last 5 years and reached its all-time high at Rs 5,33,670 crore in 2020-21.

On the global front, Asian markets were trading higher with investors seemingly confident markets can weather whatever comes from a host of central bank meetings this week, including the likely early end to U.S. policy stimulus. Back home, on the sectoral front, Railways stocks remained in limelight with a private report that the Ministry of Railways will get Rs 20,000 crore under the second tranche of the supplementary demand for grants. 

The BSE Sensex is currently trading at 59018.86, up by 232.19 points or 0.39% after trading in a range of 58974.31 and 59203.37. 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 0.46%, while Small cap index was up by 0.82%.

The top gaining sectoral indices on the BSE were Power up by 1.42%, Metal up by 1.32%, Consumer Durables up by 1.24%, Bankex up by 1.02% and Capital Goods up by 0.94%, while Energy down by 0.45% was the lone losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.76%, Axis Bank up by 2.54%, Power Grid Corporation up by 2.32%, Titan Company up by 1.55% and Maruti Suzuki up by 1.39%. On the flip side, Bajaj Finance down by 1.70%, Reliance Industries down by 0.97%, Nestle down by 0.65%, Bajaj Finserv down by 0.49% and Mahindra & Mahindra down by 0.46% were the top losers.

Meanwhile, Union minister Piyush Goyal has said the less the government interferes in the startup ecosystem, the more potential it will have to become successful. However, Goyal added the government can play the role of a facilitator. He mentioned ‘Look at the IT sector. It is successful in India, because the government has no role to play. Allowing entrepreneurs to operate with less amount of government interference or involvement will them help come up with cost-effective and affordable solutions, and to improve their quality and designs. Crutches only help them in the short run. If we really want to let this ecosystem grow and go to great lengths, then we have to let it work on its own’.

Further, he stated ‘If I take the list of unicorns, almost none of them have taken government's support to become unicorns...Government can play a role in reducing taxes. We have reduced the charges for startups and women entrepreneurs in patent filing, etc. Government can be a good facilitator’. He said it is the enterprising spirit of the young boys and girls and entrepreneurs that truly defines success. Unicorn is a startup company with a value of over $1 billion.

Besides, he said almost 46 per cent startups registered with the DPIIT (Department for Promotion of Industry and Internal Trade) have women entrepreneurs. He stated ‘I like the idea of rating the incubators and escalating funding to those that do a good job. The Modi government recognised the power this country has and the Startup India programme was initiated. Today, we have grown to be the third largest startup ecosystem in the world.’

The CNX Nifty is currently trading at 17609.30, up by 98.00 points or 0.56% after trading in a range of 17572.25 and 17639.50. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.02%, Axis Bank up by 2.65%, Power Grid Corporation up by 2.42%, Hindalco up by 2.33% and Wipro up by 2.30%. On the flip side, Bajaj Finance down by 1.54%, Reliance Industries down by 0.86%, Nestle down by 0.62%, Britannia Industries down by 0.57% and Bajaj Finserv down by 0.25% were the top losers.

Asian markets were trading higher; Hang Seng increased 242.41 points or 1.01% to 24,238.13, Shanghai Composite gained 36.53 points or 1% to 3,702.88, KOSPI rose 8.50 points or 0.28% to 3,018.73, Straits Times advanced 7.32 points or 0.23% to 3,142.93, Jakarta Composite soared 21.74 points or 0.33% to 6,674.66, Taiwan Weighted strengthened 30.96 points or 0.17% to 17,857.22 and Nikkei 225 surged 244.24 points or 0.86% to 28,682.01.