Indian equity markets are holding their early gains on account of sustained buying by investors and foreign funds buoyed. Sentiments were upbeat with private report where Finance Minister Nirmala Sitharaman stated that India is in no hurry to withdraw the COVID-19 induced stimulus and emphasised that it will continue to build support required for economic growth. Markets also got support as foreign institutional investors (FIIs) were stood a net buyers in the capital market, as they purchased shares worth Rs 512.44 crore. In scrip specific developments, Indian Energy Exchange jumped as firm to mull bonus issue and TTK Prestige surged as board to consider stock split. On sectoral front, banking shares were in focus as Global rating agency Moody's upgraded the outlook on the Indian banking system from ‘Negative’ to ‘Stable’ on the back of stabilising asset quality and improved capital. On the global front, Asian markets were trading mostly higher as optimism over corporate earnings provided some respite from long-running worries about inflation, central bank tightening and signs of a slowing economic recovery.
The BSE Sensex is currently trading at 62167.10, up by 401.51 points or 0.65% after trading in a range of 61594.29 and 62201.72. There were 19 stocks advancing against 11 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index rose 0.05%, while Small cap index was up by 0.22%.
The top gaining sectoral indices on the BSE were IT up by 2.20%, TECK up by 1.82%, Capital Goods up by 1.62%, Power up by 0.91% and Utilities was up by 0.69%, while Realty down by 2.01%, Consumer Durables down by 1.38%, Basic Materials down by 0.65%, FMCG down by 0.52% and Auto was down by 0.50% were the losing indices on BSE.
The top gainers on the Sensex were Tech Mahindra up by 4.51%, Larsen & Toubro up by 3.33%, Bajaj Finserv up by 2.68%, Infosys up by 1.94% and NTPC was up by 1.61%. On the flip side, ITC down by 4.55%, Ultratech Cement down by 2.54%, Titan Company down by 2.36%, Dr. Reddy's Lab down by 1.01% and Power Grid was down by 0.79% were the top losers.
Meanwhile, observing that a continued coordinated policy response to fight COVID-19 including through vaccines is critical to overcome the ongoing health crisis, the International Monetary Fund (IMF) has said that addressing the long-standing reform priorities and improving education outcomes will be key to help minimize adverse medium-term impacts from the pandemic and further boost long-term growth in India.
It further said providing fiscal resources to the health sector and social support to the most vulnerable also remain policy priorities. It said while fiscal space has narrowed, fiscal policy can and should continue to play a key role in facilitating a strong, inclusive and green economic recovery, and help avoid an adverse, longer lasting impact. It said additional fiscal support is warranted until the recovery is fully entrenched, including additional spending on health and to support the most vulnerable groups.
IMF has stated that policy space can be enhanced through a credible and clearly communicated medium-term fiscal consolidation strategy that outlines a gradual removal of policy support and revenue enhancing measures. It also said that while closely monitoring elevated inflation pressures, maintaining accommodative monetary policy remains appropriate until growth begins to firmly recover. It added that financial sector and regulatory policies should support the recovery while allowing the exit of non-viable firms and encouraging banks to continue building capital buffers and recognize problem loans.
The CNX Nifty is currently trading at 18573.50, up by 96.45 points or 0.52% after trading in a range of 18400.25 and 18604.45. There were 30 stocks advancing against 20 stocks declining on the index.
The top gainers on Nifty were Tech Mahindra up by 4.29%, Larsen & Toubro up by 3.31%, Bajaj Finserv up by 2.55%, Infosys up by 1.89% and Coal India was up by 1.81%. On the flip side, ITC down by 4.65%, Eicher Motors down by 2.73%, Ultratech Cement down by 2.67%, Titan Co down by 2.41% and Divi's Lab was down by 1.70% were the top losers.
Asian markets were trading mostly higher; KOSPI rose 0.77 points or 3022.23% to 23.23, Taiwan Weighted strengthened 1.17 points or 16791.12% to 195.21, Shanghai Composite gained 0.74 points or 3562.3% to 26.26, Straits Times advanced 19.12 points or 0.6% to 3,192.94, Nikkei 225 surged 190.06 points or 0.65% to 29,215.52 and Hang Seng was up by 1.33 points or 25471.25% to 337.15.
On the flip side; Jakarta Composite was down by 0.45 points or 6665.72% to 30.09.
