Bourses continue to trade with gains in late afternoon session

Indian equity markets continued to trade with gains in late afternoon session led by gains in IT sector’s stocks. The broader indices, the BSE Mid cap index and Small cap index traded with hefty gains respectively. Traders were hoping that Reserve Bank of India (RBI) likely to keep interest rate unchanged for the sixth consecutive time at 6.5 per cent. Meanwhile, India is likely to sign a multi-billion-dollar deal to extend LNG imports from Qatar till 2048 at rates that are lower than current prices On the global front, Asian markets were trading mixed with Chinese and Hong Kong markets rallying after a government investment fund said it would expand purchases of stock index funds to counter heavy selling in the Chinese markets. European markets were trading mostly in green after BP Plc unveiled more share buybacks and announced plans to boost shareholder returns. 

The BSE Sensex is currently trading at 72159.08, up by 427.66 points or 0.60% after trading in a range of 71625.18 and 72216.81. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.86%, while Small cap index was up by 1.03%.

The top gaining sectoral indices on the BSE were IT up by 2.95%, TECK up by 2.88%, Oil & Gas up by 2.68%, Telecom up by 1.93% and Energy was up by 1.78%, while Bankex down by 0.59%, Power down by 0.22%, FMCG down by 0.11%, Utilities down by 0.07% and Realty was down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 4.48%, TCS up by 4.15%, Wipro up by 3.80%, Maruti Suzuki up by 3.78% and Bharti Airtel up by 2.82%. On the flip side, Power Grid down by 2.74%, Indusind Bank down by 2.15%, Bajaj Finserv down by 1.83%, ITC down by 1.42% and Kotak Mahindra Bank down by 1.25% were the top losers.

Meanwhile, urging banks to work in close coordination with Department of Commerce and export promotion councils for trade facilitation and early resolution of problems faced in trade, Secretary of Department of Financial Services, Vivek Joshi has advised banks to classify issues faced by them in different categories and indicated that they may consider seeking necessary regulatory guidance from RBI and also develop a standard operating procedure through Indian Banks Association (IBA).

Vivek Joshi chaired a review meeting to address banking and insurance related issues faced by exporters and importers in New Delhi. The meeting was attended by senior officers from Ministry of External Affairs, Department of Commerce, and Ministry of Finance. Functionaries of Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDAI) along with Chairman, State Bank of India (SBI) and senior executives of major commercial banks joined the meeting.

During the meeting, specific operational issues, viz., delay in issuance of e-bank realisation certificates, overdue letters of credit, etc. were discussed. During the meeting, banks informed that after ensuring necessary due diligence and compliance with regulatory directions, trade transactions are continued to be facilitated by them. It was noted that in some cases, banks have proactively engaged with their clients and resolved the matter. Further, to ensure a seamless process, banks were advised to engage with clients to expedite resolution of their problems while appropriately examining compliance requirements.

The CNX Nifty is currently trading at 21918.30, up by 146.60 points or 0.67% after trading in a range of 21737.55 and 21936.05. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were BPCL up by 5.74%, HDFC Life Insurance up by 4.90%, HCL Tech up by 4.35%, TCS up by 4.09% and Maruti Suzuki up by 4.07%. On the flip side, Power Grid down by 2.53%, Indusind Bank down by 1.87%, Bajaj Finserv down by 1.85%, Britannia down by 1.69% and ITC down by 1.37% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 626.86 points or 3.88% to 16,136.87, Shanghai Composite strengthened 87.3 points or 3.13% to 2,789.49 and Jakarta Composite was up by 60.32 points or 0.84% to 7,258.94. On the flip side, Straits Times fell 3.95 points or 0.13% to 3,130.34, KOSPI dropped 15.11 points or 0.59% to 2,576.20 and Nikkei 225 was down by 193.5 points or 0.54% to 36,160.66.

European markets were trading mostly in green; UK’s FTSE 100 increased 53.25 points or 0.7% to 7,666.11 and France’s CAC was up by 23.05 points or 0.3% to 7,613.01. On the flip side, Germany’s DAX was down by 6.68 points or 0.04% to 16,897.38.