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Indian stock markets continued to trade in positive terrain in afternoon session as economic activity is likely to gather momentum as most states are gradually opening up since fresh COVID cases have fallen. Also, sustained foreign fund inflow also supported the markets. Foreign investors have infused close to Rs 8,000 crore into Indian equities in the first four trading sessions of June as risk-on sentiment improved amid rapidly falling new Covid cases and robust corporate earnings. However, upside remain capped as India’s rank slipped by two places from last year to 117 on the 17 Sustainable Development Goals (SDGs) adopted as a part of the 2030 agenda by 193 United Nations member states in 2015. The State of India’s Environment Report 2021 revealed that India’s rank was 115 last year and dropped by two places primarily because major challenges like ending hunger and achieving food security (SDG 2), achieving gender equality (SDG 5) and building resilient infrastructure, promoting inclusive and sustainable industrialisation and fostering innovation (SDG 9) remain in the country.

On the global front, Asian markets were trading mostly firm as the anxiously awaited May U.S. payrolls report showed the recovery on track but not so hot that it might bring forward a policy tapering from the Federal Reserve. Back home, the market breadth remained optimistic, as there were 2346 shares on the gaining side against 821 shares on the losing side, while 177 shares remained unchanged.

The BSE Sensex is currently trading at 52152.76, up by 52.71 points or 0.10% after trading in a range of 52054.76 and 52279.55. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.94%, while Small cap index was up by 1.32%.

The top gaining sectoral indices on the BSE were Utilities up by 2.89%, Power up by 2.32%, Telecom up by 1.59%, Industrials up by 1.46% and PSU was up by 1.36%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were NTPC up by 3.17%, Ultratech Cement up by 2.82%, Power Grid up by 2.72%, ITC up by 1.51% and Larsen & Toubro was up by 1.48%. On the flip side, Bajaj Finance down by 4.65%, Bajaj Finserv down by 3.34%, HDFC down by 1.21%, Dr. Reddys Lab down by 0.51% and Infosys wasd down by 0.34% were the top losers.

Meanwhile, India Inc is looking forward to a repo rate cut in future as cost of funds has to come down in coming times, and expects continuation of accommodative policy stance by the Reserve Bank of India (RBI) as depressed demand has to be rejuvenated with enhanced liquidity for businesses and people. The RBI's Monetary Policy Committee has kept the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance, as the economy faces the brunt of the second COVID-19 wave.

Sanjay Aggarwal, president of PHD Chamber of Commerce and Industry, said that the RBI has maintained an accommodative stance as long as necessary to revive and sustain growth on a durable basis and to mitigate impact of COVID-19, apart from an aim to keep inflation within the target. Further, Assocham said the RBI's decision sends an important message from the central bank to be reaching out to those affected the most by the COVID-19 pandemic, through increased and wider windows for soft lendings. It said while keeping the benchmark repo rates unchanged at 4 per cent was on the expected lines, extension of Rs 15,000 crore special liquidity window for contact-intensive sectors would help job-oriented sectors, particularly amongst micro, small and medium enterprises (MSMEs).

Besides, Confederation of Indian Industry (CII) said that while keeping the policy rates unchanged, RBI's move to continue to use its unconventional tools to keep yields stable amid a large government borrowing program provides succour to keep the borrowing costs contained for the private sector. Commenting on the RBI's monetary policy announcement, industry chamber FICCI said the central bank's consistency and approach towards managing the current challenges both economic and those on health front are laudable.

The CNX Nifty is currently trading at 15722.75, up by 52.50 points or 0.34% after trading in a range of 15678.10 and 15739.40. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 7.17%, Tata Motors up by 3.57%, NTPC up by 3.22%, Shree Cement up by 2.91% and Ultratech Cement was up by 2.82%. On the flip side, Bajaj Finance down by 4.60%, Bajaj Finserv down by 3.30%, HDFC down by 1.14%, Cipla down by 0.76% and Dr. Reddys Lab was down by 0.60% were the top losers.

Asian markets were trading mostly higher; Jakarta Composite soared 1.67 points or 0.03% to 6,066.84, KOSPI rose 12.04 points or 0.37% to 3,252.12, Nikkei 225 surged 77.72 points or 0.27% to 29,019.24, Straits Times advanced 22.85 points or 0.73% to 3,173.89, Shanghai Composite was up by 3.58 points or 0.1% to 3,595.42.

On the other hand; Taiwan Weighted dropped 63.50 points or 0.37% to 17,083.91 and Hang Seng was down by 169.56 points or 0.59% to 28,748.54.

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