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Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the afternoon session due to buying in power, metal and PSU stocks. Buying in frontline stocks such as ONGC, Mahindra & Mahindra and Bajaj Finance were aiding sentiment, while selling in Indusind Bank, Asian Paints and Tech Mahindra kept the gains in check. Sentiments remained positive as the Corporate Affairs Ministry revised the definition of small companies under the Companies Act by increasing their thresholds for paid-up capital from 'not exceeding Rs 50 lakh' to 'not exceeding Rs two crore' and turnover from 'not exceeding Rs two crore' to 'not exceeding Rs 20 crore'. However, upside remain capped with report that India’s economy has suffered more than most from the pandemic and so have its people. The country has lost more than a year’s worth of growth and perhaps a decade’s progress in its efforts to reduce poverty. The economic contraction - the first in India since the 1970s - has put pressure on its government like so many others to respond.

On the global front, Asian markets were trading mostly lower amid worries about policy tightening in the world’s second-largest economy. Back on street, in scrip specific developments, Bajaj Consumer Care shines on reporting 18% rise in Q3 consolidated net profit and Apollo Tyres zoomed on reporting over 2-fold jump in Q3 consolidated net profit.

The BSE Sensex is currently trading at 50362.04, up by 106.29 points or 0.21% after trading in a range of 49926.45 and 50379.73. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.40%, while Small cap index was up by 1.46%.

The top gaining sectoral indices on the BSE were Power up by 2.58%, Metal up by 2.24%, PSU up by 1.91%, Capital Goods up by 1.89% and Industrials was up by 1.88%, while Telecom down by 0.16%, TECK down by 0.15% and IT down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 5.14%, Mahindra & Mahindra up by 4.15%, Bajaj Finance up by 2.59%, Kotak Mahindra Bank up by 2.45% and NTPC was up by 1.95%. On the flip side, Indusind Bank down by 1.86%, Asian Paints down by 1.30%, Tech Mahindra down by 1.20%, Titan Company down by 0.87% and Bharti Airtel was down by 0.79% were the top losers.

Meanwhile, Finance Ministry has released the 14th weekly installment of Rs 6,000 crore to states to meet the GST compensation shortfall. The amount has been borrowed this week at an interest rate of 4.61 per cent. Till now, 76 percent of the total estimated GST compensation shortfall has been released to states and 3 UTs.

So far, an amount of Rs 84,000 crore has been borrowed by the central government through the special borrowing window.  Out of this, an amount of Rs 76,616.16 crore has been released to 23 states and Rs 7,383.84 crore to the 3 UTs with Legislative Assembly (Delhi, J&K, Puducherry). The remaining 5 states, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim, do not have a gap in revenue on account of GST implementation.

The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of GST. In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Centre has also granted additional borrowing permission equivalent to 0.50 per cent of Gross State Domestic Product (GSDP) to states to help them mobilise additional financial resources. Permission for borrowing the entire additional amount of Rs 1,06,830 crore (0.50 per cent of GSDP) has been granted to 28 states under this provision.

The CNX Nifty is currently trading at 14832.55, up by 42.60 points or 0.29% after trading in a range of 14714.75 and 14839.35. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.98%, Coal India up by 4.77%, Mahindra & Mahindra up by 3.46%, Bajaj Finance up by 2.71% and Kotak Mahindra Bank was up by 2.64%. On the flip side, Indusind Bank down by 1.64%, Tech Mahindra down by 1.32%, UPL down by 1.29%, Asian Paints down by 1.27% and Titan Company was down by 1.13% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 304.55 points or 1.06% to 28,341.95, Taiwan Weighted dropped 65.10 points or 0.41% to 15,706.22, KOSPI fell 42.13 points or 1.35% to 3,087.55, Straits Times trembled 40.14 points or 1.37% to 2,887.33, Hang Seng decreased 233.59 points or 0.8% to 29,073.87 and Shanghai Composite was down by 12.45 points or 0.35% to 3,504.86. On the flip side, Jakarta Composite was up by 17.87 points or 0.29% to 6,095.62.

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