Domestic indices maintain gains in late Morning deals

Domestic equity indices maintained their gains and were trading with gains of over half a percent in late morning deals as market participants indulged in enlarging their positions. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets also participated in the rally. Sentiments remained upbeat on private report that India is well placed to benefit from geopolitical and economic trends that are driving the diversification of Asia's manufacturing supply chain, and it is also the country's manufacturing moment. Further, support also came in as India and Brazil on Sunday agreed to work together for the expansion of India-Mercosur preferential trade agreement (PTA) to further promote economic ties. 

On the global front, Asian markets were trading mixed ahead of key data from China. China will announce its industrial output, retail sales, and most notably, house sale prices on Friday. Back home, all the sectoral indices on the BSE were trading higher led by Telecom, Realty, PSU, Auto and Metal. Railway industry related stocks were in focus on reports that the US, Saudi Arabia, India, and other nations are discussing a possible infrastructure deal that could reconfigure trade between the Gulf and South Asia, linking Middle Eastern countries by railways and connecting to India by port. Ircon International, Indian Railway Finance Corporation and Rail Vikas Nigam were trading higher with solid gains.  

The BSE Sensex is currently trading at 66954.92, up by 356.01 points or 0.53% after trading in a range of 66735.84 and 66978.34. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.92%, while Small cap index up by 0.76%.

The top gaining sectoral indices on the BSE were Telecom up by 1.87%, Realty up by 1.21%, PSU up by 1.11%, Auto up by 1.05%, Metal up by 1.02%, while there were no losers.  

The top gainers on the Sensex were Maruti Suzuki up by 1.61%, HCL up by 1.58%, Tata Steel up by 1.31%, Nestle up by 1.30% and SBI up by 1.12%. On the flip side, Indusind Bank down by 0.63%, Sun Pharma down by 0.29%, Bajaj Finance down by 0.17% and Power Grid down by 0.08% were the top losers. 

Meanwhile, observing that global recovery from the COVID-19 pandemic is slow and uneven, IMF Managing Director (MD) Kristalina Georgieva has said that all countries should pursue sound policies to support economic and financial stability and growth-oriented structural reforms against this background. She said this is especially important in emerging and developing countries, where such reforms can boost output by up to 8 per cent over 4 years.

Georgieva has stated that countries also need to mobilize domestic resources to finance and manage the green transition through tax reforms, effective and efficient public spending, strong fiscal institutions, and deep local debt markets. To make the global economy stronger and more resilient in a more shock-prone world, she said, it is vital to reach an agreement to increase IMF's quota resources before the end of the year and secure the needed resources for the Fund's interest-free support to the poorest countries through the Poverty Reduction and Growth Trust.

To build a prosperous future, IMF MD has said that the world needs to harness the potential of digital technology and India's achievement in developing top-tier digital public infrastructure (DPI) stands as a beacon for others. Appreciating that India's G20 presidency is a powerful reminder that when the international community comes together to solve global problems, much can be accomplished, she underlined the need to further strengthening the bonds of international cooperation to create a more prosperous and resilient global economy for all.

The CNX Nifty is currently trading at 19938.75, up by 118.80 points or 0.60% after trading in a range of 19865.35 and 19946.45. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 4.22%, HDFC Life Insurance up by 1.83%, Apollo Hospital up by 1.78%, HCL up by 1.65% and Maruti Suzuki up by 1.61%. On the flip side, Indusind Bank down by 0.70%, Coal India down by 0.57%, Cipla down by 0.41%, Sun Pharma down by 0.23% and Bajaj Finance down by 0.18% were the top losers.

Asian markets were trading mixed; Straits Times rose 3.06 points or 0.1% to 3,210.81, Shanghai Composite strengthened 35.22 points or 1.13% to 3,151.94, Jakarta Composite gained 13.13 points or 0.19% to 6,937.91 and KOSPI increased 6.17 points or 0.24% to 2,553.85, while Hang Seng declined 157.73 points or 0.87% to 18,044.34, Taiwan Weighted lost 139.98 points or 0.85% to 16,436.04 and Nikkei 225 slipped 173.29 points or 0.53% to 32,433.55.