IGI Logo

Markets continue to trade in high spirit

Indian equity benchmarks continued to trade in high spirit in afternoon session, on account of broad based buying in blue chip counters. Sentiments were upbeat with private report penning that the Indian government is confident that it can obtain funds for its massive 2021-22 borrowing programme at below six percent, as the central bank has given assurances that it will provide liquidity. Meanwhile, Finance Minister Nirmala Sitharaman said that the government will work with the Reserve Bank for execution of the bank privatisation plan announced in the budget. Gains in frontline blue chip stocks such as Mahindra & Mahindra, Larsen & Toubro and Bajaj Finserv helped lift the markets. On the global front, Asian markets were trading mostly higher on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

The BSE Sensex is currently trading at 51233.50, up by 501.87 points or 0.99% after trading in a range of 51146.67 and 51472.68. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.23%, while Small cap index was up by 1.39%.

The top gaining sectoral indices on the BSE were Telecom up by 2.39%, Industrials up by 2.31%, Capital Goods up by 2.29%, Auto up by 2.12% and Consumer Durables was up by 2.09%, while FMCG was down by 0.20% was the only losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 6.48%, Larsen & Toubro up by 3.15%, Bajaj Finserv up by 2.99%, Bharti Airtel up by 2.78% and Axis Bank was up by 2.64%. On the flip side, Kotak Mahindra Bank down by 1.08%, Hindustan Unilever down by 0.76%, ITC down by 0.70%, Bajaj Auto down by 0.33% and HDFC down was by 0.16% were the top losers.

Meanwhile, Defence Minister Rajnath Singh has said that the government's endeavour is also to bring down its defence imports by at least $2 billion by 2022, with an aim of encouraging the manufacture of defence related items in the country. He also said the aerospace sector has an important role to play, if India has to reach its targets of domestic defence production of $25billion and exports of $5 billion by 2025.

Singh has stated that between 2016 and 2019, as many as 138 proposals worth over $37 billion for domestic manufacturing have been approved. He also said the order for 83 LCA MK 1A worth over Rs 48,000 crore that has been given by the government will give a big boost to domestic manufacturing and especially to the aviation industry. He noted that it would spawn new and resilient supply chains. He added that the negative list of 101 items for import also means to provide opportunities for the domestic manufacturing sector to strengthen their base and contribute to Aatma Nirbhar Bharat.

The Minister further said a robust domestic manufacturing base relates directly to the potential for defence exports. He said ‘we plan to move from a $11 billion defence base to $25 billion by 2025. Of this, we further intend to create an export component of $5 billion. During the period 2015-2020, defence exports grew from Rs2,000 crore to Rs 9,000 crore.

The CNX Nifty is currently trading at 15072.65, up by 148.40 points or 0.99% after trading in a range of 15041.05 and 15133.00. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 6.50%, Hindalco up by 4.29%, GAIL India up by 3.32%, Larsen & Toubro up by 3.19% and Bajaj Finserv was up by 2.93%. On the flip side, Britannia Industries down by 1.42%, Divis Lab down by 1.32%, Kotak Mahindra Bank down by 1.08%, Hindustan Unilever down by 0.77% and ITC was down by 0.77% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 609.31 points or 2.12% to 29,388.50, Straits Times advanced 23.13 points or 0.8% to 2,930.24, Hang Seng increased 59.82 points or 0.2% to 29,348.50, Shanghai Composite gained 28.51 points or 0.82% to 3,524.84 and Jakarta Composite was up by 59.10 points or 0.96% to 6,210.83. On the other side, KOSPI was down by 29.39 points or 0.94% to 3,091.24.

For More  LKP Securities Ltd Disclaimer  http://www.lkpsec.com/

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer