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Indian equity benchmarks were trading flat with positive bias in afternoon session. Selling in frontline blue chip stocks such as ITC, Power Grid and HDFC restricted the markets to go up. Some support came as FICCI's latest quarterly survey on manufacturing assessed recovery of the sector for Q-3 (October-December 2020-21) and pointed that it is expected to regain the lost momentum in the Q-4. Adding optimism, according to private report India is expected to be the third-largest economy in the world by 2031. India should touch Japan's nominal GDP (in USD) in 2031, if it grows at 9 per cent (and in 2030 if it grows at 10 percent). This assumes an entirely realistic 6 per cent real growth, 5 per cent inflation and 2 per cent depreciation. However, upside remain capped with private report stating that the 'second wave' of the pandemic is delaying business normalization in the country, as coronavirus infections rise in Maharashtra and other states.

On the global front, Asian markets were trading mostly lower which were jolted by a new round of sanctions, after ebbing inflation fears had helped shore up broader sentiment in the region. Back home, BSE Sensex is currently trading at 49796.00, up by 24.71 points or 0.05% after trading in a range of 49661.92 and 50227.03. 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 0.67%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Industrials up by 0.92%, Power up by 0.85%, Energy up by 0.71%, Realty up by 0.65% and Auto was up by 0.50%, while Metal down by 0.94%, Telecom down by 0.82%, Oil & Gas down by 0.44%, PSU down by 0.31% and FMCG was down by 0.24% were top the losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 1.44%, Ultratech Cement up by 1.28%, Indusind Bank up by 1.22%, Maruti Suzuki up by 1.00% and Reliance Industries was up by 0.87%. On the flip side, ITC down by 1.88%, Power Grid down by 1.61%, HDFC down by 1.57%, NTPC down by 1.36% and Sun Pharma was down by 1.29% were the top losers.

Meanwhile, former RBI Deputy Governor Rakesh Mohan has pitched for changing the central bank's inflation target band of 2-6 percent, saying inflation will not take off as long as the government is doing proper macroeconomic management. He also noted that under the current dispensation, the RBI has been mandated by the government to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side.

The six-member Monetary Policy Committee (MPC), headed by the RBI governor, decides on the policy rates keeping this target in mind. Mohan said 'given the monetary policy framework these days, in some sense I would say why not change the (retail inflation) target to 5 percent not 4 percent? You are not going off to 10 percent etc.’

He further stated that the current medium-term inflation target, which was notified in August 2016, ends on March 31. The inflation target for the next five years starting April is likely to be notified this month. He opined ‘and suppose you have 5 per cent (retail) inflation target and 7 per cent growth (target), that is something one can realistically think about it. Because we have done it before, inflation does not take off as long as you are doing proper macroeconomic management.’

The CNX Nifty is currently trading at 14740.25, up by 3.85 points or 0.03% after trading in a range of 14707.00 and 14867.75. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Shree Cement up by 2.66%, Adani Ports up by 2.47%, Divis Lab up by 1.56%, Titan Company up by 1.48% and Ultratech Cement was up by 1.19%. On the flip side, Indian Oil Corporation down by 2.72%, Hindalco down by 2.28%, ITC down by 1.95%, GAIL India down by 1.61% and Power Grid was down by 1.59% were the top losers.

Asian markets were trading mostly lower; Taiwan Weighted dropped 11.63 points or 0.07% to 16,177.59, Hang Seng decreased 480.67 points or 1.66% to 28,404.67, Shanghai Composite declined 48.70 points or 1.41% to 3,394.74, Jakarta Composite lost 9.47 points or 0.15% to 6,291.66, KOSPI fell 30.72 points or 1.01% to 3,004.74 and Nikkei 225 was down by 178.23 points or 0.61% to 28,995.92. On the other hand; Straits Times was up by 0.72 points or 0.02% to 3,128.80.

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