Jubilation continues on Dalal Street in morning deals

Indian equity benchmarks continued to trade jubilantly in morning session led by gains in index majors Dr. Reddy's Lab, Nestle and Tata Steel amid positive signals from their Asian peers. Sentiments also remained up-beat with Finance Minister Nirmala Sitharaman’s statement that India's economic growth is likely to be robust at 8.9 percent in the current financial year, reflecting the country's strong resilience and speedy recovery. Sitharaman also expressed confidence that India will continue to achieve a high growth rate in the next financial year as well. Adding to the optimism, Lok Sabha Speaker Om Birla said India is on its way to become ‘a hub of export’ as there has been an ‘extensive progress’ in various sectors including defence under the leadership of Prime Minister Narendra Modi in the country.

On the global front, Asian markets are trading in green after China cut a key lending benchmark to support a slowing economy, but a gauge of global equities remained set for its longest weekly losing streak on record amid investor worries about sluggish growth. China cut its five-year loan prime rate (LPR) by 15 basis points on Friday morning, a sharper cut than had been expected, as authorities seek to cushion an economic slowdown, though it left the one-year LPR unchanged. Back home, agriculture industry related stocks remained in watch as the third advance estimate released by the agriculture ministry showed that India’s foodgrain production will rise 1.2% on year to a new record of 314.51 million tonne (MT) for the 2021-22 crop year (July-June).

The BSE Sensex is currently trading at 53917.31, up by 1125.08 points or 2.13% after trading in a range of 53403.29 and 53997.80. All the 30 stocks were advancing on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.73%, while Small cap index was up by 1.75%.

The top gaining sectoral indices on the BSE were Realty up by 3.49%, Metal up by 3.27%, Auto up by 2.92%, Industrials up by 2.62%, Capital Goods up by 2.42%, while there was no loser on the BSE sectoral front.

The top gainers on the Sensex were Dr. Reddy's Lab up by 5.04%, Nestle up by 3.47%, Tata Steel up by 3.31%, Maruti Suzuki up by 3.08% and Reliance Industries up by 2.94%.

Meanwhile, NITI Aayog CEO Amitabh Kant has said the government's job should be laying down public policy framework, it is the private sector's job to create wealth. The only other areas where the government should be are health, education and nutrition.

Further, he said India needs a very simple, efficient, and transparent government. Talking about the digital economy, he said India is at the cusp of a very important transformation and the whole process of digitisation has been a transformational journey.

It stated if eastern parts of India digitises fully and makes governance very easy, then eastern part of India will actually become a very responsive government. He added that these states are full of mineral resources. He also stressed that data-driven governance is the key to good governance.

The CNX Nifty is currently trading at 16160.45, up by 351.05 points or 2.22% after trading in a range of 16003.85 and 16179.25. All the 50 stocks were advancing on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 4.98%, Tata Motors up by 4.90%, JSW Steel up by 4.80%, Adani Ports &SEZ up by 4.05% and Bajaj Auto up by 3.72%.

All the Asian markets are trading in green; Taiwan Weighted strengthened 138.37 points or 0.86% to 16,158.69, Nikkei 225 surged 315.58 points or 1.2% to 26,718.42, Jakarta Composite soared 119.11 points or 1.75% to 6,942.45, Straits Times advanced 40.97 points or 1.28% to 3,231.68, KOSPI rose 47.40 points or 1.83% to 2,639.74, Shanghai Composite gained 34.44 points or 1.11% to 3,131.40 and Hang Seng increased 368.95 points or 1.83% to 20,489.63.