Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued their trade in positive terrain in noon session due to buying in telecom, auto and consumer discretionary stocks. Buying in frontline stocks such as Mahindra & Mahindra, Hindustan Unilever and Bharti Airtel were aiding sentiment, while selling in Tech Mahindra, Infosys and TCS kept the gains in the markets in check. Sentiments were upbeat with private report stating that the Indian economy can grow by 7-7.8 per cent this fiscal on the back of better agriculture production and a revitalised rural economy amid global headwinds mainly due to the ongoing Russia-Ukraine war. Additional support also came as Prime Minister Narendra Modi said that Mutual cooperation between the BRICS nations could help in global recovery after the coronavirus pandemic. On the global front, Asian markets were trading higher as sound financials of the US banks have brought a sense of optimism to the global economy.

The BSE Sensex is currently trading at 52492.61, up by 226.89 points or 0.43% after trading in a range of 52448.05 and 52909.87. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.93%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Telecom up by 2.16%, Auto up by 1.29%, Consumer Discretionary up by 1.05%, Metal up by 1.00% and Bankex was up by 0.98%, while IT down by 0.88% and TECK was down by 0.50% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.06%, Hindustan Unilever up by 1.79%, Bharti Airtel up by 1.78%, Indusind Bank up by 1.32% and HDFC Bank was up by 1.29%. On the flip side, Tech Mahindra down by 1.62%, Infosys down by 1.22%, TCS down by 0.75%, Asian Paints down by 0.69% and NTPC was down by 0.59% were the top losers.

Meanwhile, Reserve Bank of India (RBI) has proposed guidelines for the outsourcing of Information Technology (IT) Services to ring-fence banks and other regulated entities from financial, operational and reputational risks. According to RBI's draft Master Direction on Outsourcing of IT Services, regulated entities (REs) will not require prior approval from the central bank for the outsourcing of IT and IT-enabled services.

The draft said the underlying principle of these Directions is that the RE should ensure that outsourcing arrangements neither diminish its ability to fulfil its obligations to customers nor impede effective supervision by the supervising authority. Banks, payment banks, cooperative banks, credit information companies, NBFCs and other regulated entities, would be required to put in place a comprehensive board-approved IT outsourcing policy. Outsourcing of any activity of the RE shall not diminish its obligations as also of its Board and senior management, who shall be ultimately responsible for the outsourced activity. RE shall take steps to ensure that the service provider employs the same high standard of care in performing the services as would have been employed by the RE if the same activity was not outsourced.

The draft specifies the role of the board and senior management, besides norms pertaining to the usage of cloud computing services and outsourcing of the Security Operations Center (SOC). The RBI has also proposed that the REs should set up a robust grievance redressal mechanism, which in no way shall be compromised on account of outsourcing, meaning responsibility for redressal of customers’ grievances related to outsourced services would rest with them. As per the draft, a risk management framework for the outsourcing of IT services should comprehensively deal with the processes and responsibilities for the identification, measurement, mitigation/ management and reporting of risks associated with outsourcing.

The CNX Nifty is currently trading at 15627.75, up by 71.10 points or 0.46% after trading in a range of 15619.45 and 15749.25. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.19%, Hero MotoCorp up by 2.43%, ONGC up by 1.93%, Hindustan Unilever up by 1.77% and Bharti Airtel was up by 1.76%. On the flip side, Apollo Hospital down by 1.88%, Tech Mahindra down by 1.66%, Infosys down by 1.20%, NTPC down by 0.81% and Asian Paints was down by 0.68% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 320.72 points or 1.23% to 26,491.97, Straits Times advanced 11.40 points or 0.37% to 3,104.20, Hang Seng increased 473.73 points or 2.23% to 21,747.60, Shanghai Composite gained 33.93 points or 1.02% to 3,354.08, KOSPI rose 52.28 points or 2.26% to 2,366.60, Jakarta Composite soared 48.22 points or 0.69% to 7,046.49 and Taiwan Weighted was up by 126.88 points or 0.84% to 15,303.32.