Indian equity markets maintained their upward momentum in the afternoon session, following gains in Basic Materials, Bankex and Power stocks. Healthy buying was observed in blue-chip stocks like Ultratech Cement, HDFC Bank and Tata Steel. Sentiments remained positive as private report stated that the business resumption activity continued to increase for the sixth straight week after the second wave-induced lockdowns started getting lifted. It noted that the Nomura India Business Resumption Index (NIBRI) rose up to 91.3 for the week ended June 4, from 86.3 the previous week, and is only 8.7 percentage points (pp) below pre-pandemic levels and 3.6 pp below pre-second wave level. In scrip specific development, NMDC’s shares tumbled as government is planning to raise over Rs 3,600 crore by offloading nearly 22 crore shares or about 7.5% in NMDC through an offer for sale (OFS). The issue is opened from July 6 and will close on July 7 with the floor price at Rs 165-per-share. On the global front, Asian markets were trading mixed after Australia's central bank flagged some tapering in its quantitative easing programme and concerns over the future of China's powerful technology sector weighed down shares.
The BSE Sensex is currently trading at 53074.04, up by 194.04 points or 0.37% after trading in a range of 52805.88 and 53103.99. There were 18 stocks advancing against 12 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index rose 0.88%, while Small cap index was up by 0.74%.
The top gaining sectoral indices on the BSE were Basic Materials up by 1.19%, Bankex up by 1.08%, Power up by 1.02%, Industrials up by 0.89% and Oil & Gas was up by 0.86%, while IT down by 0.30%, TECK down by 0.22%, Healthcare down by 0.18% and FMCG was down by 0.03% were the top losing indices on BSE.
The top gainers on the Sensex were Ultratech Cement up by 3.89%, HDFC Bank up by 2.34%, Tata Steel up by 1.08%, Titan Company up by 0.90% and Kotak Mahindra Bank was up by 0.86%. On the flip side, Tech Mahindra down by 1.75%, TCS down by 1.15%, Nestle down by 1.01%, NTPC down by 0.93% and Hindustan Unilever was down by 0.48% were the top losers.
Meanwhile, Telecom Secretary Anshu Prakash said that telecom department's apex body the Digital Communications Commission (DCC) has cleared a provision of using satellite connectivity in telecom networks to provide services in remote areas where it is difficult to lay optical fibre network. He said the DCC has also cleared the Request for Proposal for the rollout of BharatNet project for broadband services in villages in 16 states in public private partnership mode with viability gap funding of Rs 19,041 crore.
Telecom Secretary has stated that with a view of ease of doing business, the DCC has approved provision of cellular backhaul connectivity via satellite through VSAT (very-small-aperture terminal) for telecom services as per Trai recommendation. He said this will help telecom companies in providing service in far flung areas where it is difficult to lay optical fibre.
He also noted that the decision will allow commercial VSAT CUG (closed user group) service providers to provide backhaul connectivity for cellular mobile services through satellite using VSAT to the telecom operators. This will help telecom operators in connecting their mobile towers in tough terrains by using satellite services through VSAT (very-small-aperture terminal) system.
The CNX Nifty is currently trading at 15900.20, up by 65.85 points or 0.42% after trading in a range of 15808.70 and 15909.75. There were 32 stocks advancing against 15 stocks declining, while 3 stocks remains unchanged on the index.
The top gainers on Nifty were Ultratech Cement up by 4.02%, Shree Cement up by 3.19%, HDFC Bank up by 2.32%, Tata Motors up by 2.25% and SBI Life Insurance was up by 1.99%. On the flip side, Tech Mahindra down by 1.74%, TCS down by 1.23%, Nestle down by 1.09%, NTPC down by 0.93% and Tata Consumer Products was down by 0.73% were the top losers.
Asian markets were trading mixed; KOSPI rose 12.00 points or 0.36% to 3,305.21, Straits Times advanced 43.63 points or 1.39% to 3,184.65, Jakarta Composite soared 41.33 points or 0.69% to 6,046.94 and Nikkei 225 was up by 45.02 points or 0.16% to 28,643.21
On the other hand, Taiwan Weighted dropped 6.26 points or 0.03% to 17,913.07, Shanghai Composite declined 16.40 points or 0.46% to 3,517.92 and Hang Seng was down by 67.82 points or 0.24% to 28,075.68.