Mirroring their Asian peers, Indian equity markets were trading in fine fettle with Sensex and Nifty crossing 55,500 and 16450 levels in the afternoon session due to buying in TECK, IT and Energy stocks. Gains in frontline blue chip stocks such as HCL Tech and TCS also helped lift the markets. Sentiments were upbeat as Crisil Ratings revised the credit quality outlook of India Inc for fiscal 2022 to positive from cautiously optimistic earlier, predicated on a sustained recovery in demand after the blip caused by the second wave of Covid-19 afflictions in the first quarter. The increase in coverage of vaccinations should also mitigate the impact of a third wave if it comes about. In another positive development, foreign portfolio investors (FPI) have pumped in a net Rs 7,245 crore into the Indian capital markets in August so far amid positive sentiments due to an improving macroeconomic environment. In scrip specific development, Zomato shares declined as the lock-in period for the company's anchor investors ended, leading to high share sales volume on stock exchanges. Anchor investors are big institutional investors such as mutual funds or sovereign wealth funds that buy a substantial number of shares in an IPO-bound company.
On the global front, all Asian markets were trading higher as investor sentiment received a big boost from the rally last week on Wall Street, despite worries about the more contagious coronavirus delta variant not only in the region but across the world.
Back home, BSE Sensex is currently trading at 55533.03, up by 203.71 points or 0.37% after trading in a range of 55240.29 and 55781.17. There were 19 stocks advancing against 11 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index lost 0.61%, while Small cap index was down by 1.22%.
The top gaining sectoral indices on the BSE were TECK up by 1.34%, IT up by 1.33%, Energy up by 0.46%, Oil & Gas up by 0.35% and Telecom was up by 0.27%, while Consumer Durables down by 1.10%, Basic Materials down by 0.95%, Realty down by 0.84%, Consumer Discretionary down by 0.66% and Industrials was down by 0.50% were the top losing indices on BSE.
The top gainers on the Sensex were HCL Tech up by 4.05%, TCS up by 2.68%, Bajaj Finserv up by 2.48%, Bajaj Finance up by 1.87% and Tech Mahindra was up by 1.86%. On the flip side, Ultratech Cement down by 1.52%, Power Grid down by 1.34%, Titan Company down by 1.11%, Tata Steel down by 0.82% and ITC was down by 0.74% were the top losers.
Meanwhile, PHDCCI President Sanjay Aggarwal has said that there is a need to further fuel the drivers of household consumption and private investments to enhance the aggregate demand in the economy as it will have an accelerated effect on expansion of capital investments in the country.
Aggarwal has stated that the government should frontload the National Infrastructure Pipeline (NIP) expenditure as increased spending on projects will give a multiplier effect to rejuvenate the aggregate demand in the economy. He also said more and more direct benefit transfers need to be considered for the urban and rural poor under various welfare schemes, in addition to the free distribution of dry rations.
PHDCCI President further said the chamber projects a double-digit GDP growth trajectory at 10.25 percent in 2021-22, supported by the effective policies of the government and improved business sentiments. He noted that the improvement in key economic indicators is signalling broad-based recovery in the coming months which will be higher than the pre-COVID economic activity.
The CNX Nifty is currently trading at 16497.80, up by 47.30 points or 0.29% after trading in a range of 16395.70 and 16592.50. There were 26 stocks advancing against 24 stocks declining on the index.
The top gainers on Nifty were HCL Tech up by 3.77%, TCS up by 2.68%, Bajaj Finserv up by 2.39%, Bajaj Finance up by 1.82% and Hindalco was up by 1.55%. On the flip side, Tata Consumer Products down by 1.82%, Eicher Motors down by 1.79%, Ultratech Cement down by 1.50%, Power Grid down by 1.43% and Titan Company down by 1.34% were the top losers.
All Asian markets were trading firm; Taiwan Weighted strengthened 399.90 points or 2.45% to 16,741.84, KOSPI rose 29.70 points or 0.97% to 3,090.21, Shanghai Composite gained 49.08 points or 1.43% to 3,476.41, Hang Seng increased 333.30 points or 1.34% to 25,183.02, Nikkei 225 surged 480.99 points or 1.78% to 27,494.24, Straits Times advanced 0.32 points or 0.01% to 3,103.07 and Jakarta Composite was up by 56.70 points or 0.94% to 6,087.47.