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Indian equity markets maintained their upward momentum in the afternoon session, following gains in Capital Goods, Telecom and Industrials stocks. Investors’ took some solace as Finance Minister Nirmala Sitharaman discussed with her BRICS counterparts the key areas of cooperation that would be crucial in supporting recovery of the grouping's economies and maintaining macroeconomic stability, while protecting against future uncertainties posed by the COVID-19 pandemic. Meanwhile, Governor Shaktikanta Das states that the Reserve Bank of India (RBI) won't surprise the market with a sudden rate hike and all monetary policy actions would be carefully calibrated. The current inflation trajectory looked transitory. In its August policy review, the RBI kept the key rates unchanged and said the policy stance would remain accommodative as long as was necessary. On the global front, Asian markets were trading mixed as investors awaited more guidance on the U.S. Federal Reserve’s easing plans.

Back home, BSE Sensex is currently trading at 56063.62, up by 114.52 points or 0.20% after trading in a range of 55675.87 and 56097.34. 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 0.58%, while Small cap index was up by 0.63%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.40%, Telecom up by 2.11%, Industrials up by 1.55%, Basic Materials up by 1.48% and Metal was up by 1.36%, while Energy was down by 0.03% was the only losing index on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 4.14%, Ultratech Cement up by 3.10%, Bharti Airtel up by 2.62%, TCS up by 1.51% and Dr. Reddy's Lab was up by 1.43%. On the flip side, HDFC down by 1.04%, Indusind Bank down by 1.02%, Infosys down by 0.71%, ICICI Bank down by 0.69% and Nestle was down by 0.50% were the top losers.

Meanwhile, Credit ratings agency ICRA in its latest report has said that the auto components industry is expected to post 20-23 per cent revenue growth during this fiscal (FY22), aided by strong exports and recovery in the domestic market, with all segments (passenger vehicles, two-vehicles and commercial vehicles) likely to report healthy double-digit growth in 2021-22. However, it said prices of key commodities and shortage of semi-conductors remain the key concerns for the industry.

According to the report, the domestic auto component industry has seen a smart recovery during the first quarter of this fiscal, driven by strong exports and revival of domestic demand in June. It also said most domestic automobile segments, especially passenger vehicles (PVs) and tractors, continue to witness strong demand and are almost at pre-COVID-19 levels. Even the M&HCV (medium and heavy commercial vehicle) segment, which was impacted during the April quarter, is also now showing signs of recovery.

The report further said the industry gross margins improved sequentially in the first quarter of 2021-22, but remain lower than the historical trend. The shortage of semi-conductor and an increase in commodity prices remain key challenges for the industry in the near term. However, it said one of the concerns for the industry is the prices of key commodities which continue to remain at elevated levels, despite some moderation in recent months.

The CNX Nifty is currently trading at 16689.20, up by 52.30 points or 0.31% after trading in a range of 16565.60 and 16695.75. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 4.06%, Ultratech Cement up by 3.19%, Bharti Airtel up by 2.93%, Hindalco up by 2.75% and SBI Life Insuran up by 2.71%. On the flip side, HDFC down by 1.06%, Indusind Bank down by 1.03%, Infosys down by 0.85%, ICICI Bank down by 0.70% and Eicher Motors down by 0.60% were the top losers.

Asian markets were trading mixed, Taiwan Weighted gained 91.29 points or 0.53% to 17,158.25, KOSPI added 5.37 points or 0.17% to 3,133.90 and Shanghai Composite was up by 17.17 points or 0.49% to 3,518.83. 

On the other hand, Nikkei 225 declined 101.15 points or 0.36% to 27,641.14, Straits Times lost 28.02 points or 0.90% to 3,081.40, Hang Seng fall 44.85 points or 0.18% to 25,370.84 and Jakarta Composite fell 21.16 points or 0.35% to 6,036.92.

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