Equity indices traded sideways with decent gains in mid afternoon trade. The Nifty traded firmly above the 15,800 mark. IT and pharma shares were under pressure.
At 14:29 IST, the barometer index, the S&P BSE Sensex, rose 312.55 points or 0.6% at 52,797.01. The Nifty 50 index gained 91.20 points or 0.58% at 15,813.40.
In the broader market, the S&P BSE Mid-Cap index added 0.16% while the S&P BSE Small-Cap index rose 0.77%.
Buyers outpaced sellers. On the BSE, 2,192 shares rose and 1,104 shares fell.
A total of 166 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 18,37,88,043 with 39,77,121 deaths. India reported 4,82,071 active cases of COVID-19 infection and 4,02,728 deaths while 2,97,00,430 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
RBI Fiscal Stability Report:
The Reserve Bank released the 23rd issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system in the context of contemporaneous issues relating to development and regulation of the financial sector.
According to the RBI, sustained policy support, benign financial conditions and the gathering momentum of vaccination are nurturing an uneven global recovery. Policy support has helped in shoring up financial positions of banks, containing non-performing loans and maintaining solvency and liquidity globally.
On the domestic front, the ferocity of the second wave of COVID-19 has dented economic activity, but monetary, regulatory and fiscal policy measures have helped curtail the solvency risk of financial entities, stabilise markets, and maintain financial stability. The capital to risk-weighted assets ratio (CRAR) of scheduled commercial banks (SCBs) increased to 16.03% and the provisioning coverage ratio (PCR) stood at 68.86% in March 2021.
Macro stress tests indicate that the gross non-performing asset (GNPA) ratio of SCBs may increase from 7.48% in March 2021 to 9.80% by March 2022 under the baseline scenario; and to 11.22% under a severe stress scenario, although SCBs have sufficient capital, both at the aggregate and individual level, even under stress.
Going forward, as banks respond to credit demand in a recovering economy, they will need to reinforce their capital and liquidity positions to fortify themselves against potential balance sheet stress.
Buzzing Index:
The Nifty Metal index added 0.95% to 5,178.65. The index fell 3% in the past four session.
Vedanta (up 4.1%), Hindalco Industries (up 3.36%), Tata Steel (up 1.75%), Jindal Steel & Power (up 1.55%) and Steel Authority of India (up 1.33%) and Coal India (up 1.19%) climbed.
Numbers to Track:
In the foreign exchange market, the partially convertible rupee rose to 74.37 compared with its previous closing of 74.7425.
MCX Gold futures for 5 August 2021 settlement rose 0.12% to Rs 47,342.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.24% to 92.192.
The yield on 10-year benchmark federal paper rose to 6.086% from its previous close of 6.065%.
In the commodities market, Brent crude for September 2021 settlement rose 15 cents to $76.32 a barrel. The contract added 1.41% in the previous trading session to settle at $76.17.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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