Benchmarks continue to trade in green in morning deals

Indian equity benchmarks erased some of the initial gains but still trading higher in morning deals, led by buying in index majors Axis Bank, Sun Pharma and Bajaj Finance. Sentiments remained positive as the Directorate General of Trade Remedies (DGTR) has initiated several systemic and procedural changes for improving the ease of doing business and reducing the compliance burden on stakeholders. Traders also took a note of RBI article stating that improving infrastructure, ensuring low and stable inflation, and maintaining macroeconomic stability is critical for reviving animal spirits and spurring growth. It said the Indian economy consolidated its recovery, with most constituents surpassing pre-pandemic levels of activity. However, gains remain capped as some concern came with Niti Aayog CEO Amitabh Kant’s statement that India has done extremely well on the vaccination front and the challenge for the country is to grow 8-9 per cent over the next three decades. Kant further said that rise in per capita income of India is critical for removing poverty in the country.

On the global front, Asian markets are trading mostly in green boosted by solid retail sales data, and hopes of easing crackdown on tech firms and COVID-19 in China. Back home, stocks related to steel industry remained in watch as Moody's Investors Service said India's steel exports are expected to remain strong in the coming months as higher prices and regional demand would drive the steel companies to divert part of their output to exports.

The BSE Sensex is currently trading at 54542.86, up by 224.39 points or 0.41% after trading in a range of 54409.53 and 54786.00. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.51%, while Small cap index was up by 0.82%.

The top gaining sectoral indices on the BSE were IT up by 1.07%, Utilities up by 0.87%, Power up by 0.81%, TECK up by 0.79% and Consumer discretionary up by 0.72%, while Metal down by 0.59%, PSU down by 0.54%, Energy down by 0.14% and Oil & Gas down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.57%, Sun Pharma up by 1.35%, Bajaj Finance up by 1.16%, Infosys up by 1.09% and HDFC Bank up by 1.05%. On the flip side, Power Grid Corporation down by 1.97%, NTPC down by 0.93%, SBI down by 0.64%, Reliance Industries down by 0.42% and Bharti Airtel down by 0.37% were the top losers.

Meanwhile, Niti Aayog CEO Amitabh Kant said India has done extremely well on the vaccination front and the challenge for the country is to grow 8-9 per cent over the next three decades. Further, he said that rise in per capita income of India is critical for removing poverty in the country.

He said the government's role should be in public policy and the policy should create wealth through the private sector. He said ‘The government should be in education, health and nutrition.’

Moreover, it is important for Indian manufacturers to penetrate global markets and value chains. He said without technological leapfrogging, it will be difficult for India to grow at high rates. He also said India is climatically-blessed and it is an opportunity to use renewable energy

The CNX Nifty is currently trading at 16330.90, up by 71.60 points or 0.44% after trading in a range of 16278.40 and 16399.80. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 1.93%, Axis Bank up by 1.61%, Sun Pharma up by 1.42%, Eicher Motors up by 1.27% and Bajaj Finance up by 1.17%. On the flip side, Power Grid Corporation down by 1.93%, NTPC down by 0.93%, JSW Steel down by 0.91%, SBI down by 0.66% and Apollo Hospital down by 0.61% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted strengthened 209.53 points or 1.3% to 16,265.62, Nikkei 225 surged 167.73 points or 0.63% to 26,827.48, Jakarta Composite soared 46.16 points or 0.69% to 6,690.63, Straits Times advanced 27.03 points or 0.84% to 3,228.92 and KOSPI rose 0.77 points or 0.03% to 2,621.21.

On the flip side, Shanghai Composite declined 11.58 points or 0.37% to 3,082.12 and Hang Seng decreased 130.98 points or 0.64% to 20,471.54.