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The local equity markets have pared some of their gains but are still trading in positive terrain in noon session. Both Sensex and Nifty were trading above the crucial 51,000 and 15,050 levels, respectively. Mild anxiety among traders came with RBI Governor Shaktikanta Das’ statement that the Reserve Bank of India (RBI) is concerned over the impact cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government. However, markets were trading with decent gains as market participants took support with S&P Global Ratings’ statement that an improvement in macroeconomic conditions is likely to alleviate stress for India's banking sector. It said the Indian government's strong efforts to shield banks from the COVID-19 pandemic have largely been successful, but a hit from the pandemic is inevitable.

All Asian markets were trading firm after the Federal Reserve chairman said the U.S. central bank is in no hurry to withdraw support for the economy. Back home, among blue chip stocks, ONGC was top gainer trading up by 4.44%, while ICICI Bank was top loser down by 1.17%. Meanwhile, the broader indices, mid cap and small cap indices were trading up by 0.92% and 1.01% respectively.

The BSE Sensex is currently trading at 51040.09, up by 258.40 points or 0.51% after trading in a range of 51005.68 and 51386.12. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.92%, while Small cap index was up by 1.01%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.45%, Metal up by 2.45%, PSU up by 2.19%, Utilities up by 1.86% and Power was up by 1.84%, while FMCG down by 0.07% was the only losing index on BSE.

The top gainers on the Sensex were ONGC up by 4.44%, Indusind Bank up by 3.72%, Axis Bank up by 3.51%, NTPC up by 3.05% and Sun Pharma was up by 2.51%. On the flip side, ICICI Bank down by 1.17%, Nestle down by 1.16%, Asian Paints down by 1.13%, Ultratech Cement down by 0.99% and Titan Company was down by 0.81% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the central bank is concerned over the impact of cryptocurrencies may have on the financial stability in the economy and has conveyed the same to the government. He said ‘we have certain major concerns about cryptocurrencies. We have communicated them to the government. It is under consideration in the government and I do expect and I think sooner or later the government will take a call and if required Parliament also will consider and decide.’

Das has stated that the government is planning to introduce a bill in Parliament to bar companies and individuals from dealing in cryptocurrencies while creating a framework for an official digital currency. He said the RBI is 'very much in the game' and is getting ready to launch its own digital currency. If this happens, he said the RBI will join other central banks including that of China, where it has electronic yuan.

On inflation targeting, the governor said the central bank's internal working group will come out with its report on the target band in the next few days. He noted that the Monetary Policy Framework, which mandates the Reserve Bank to maintain consumer price index or retail inflation at 4 percent in a band of (+/-) 2 percent, is coming up for review in March end. He said in the near term, inflation would remain benign below 6 percent, even though core inflation remains elevated at around 5-5.5 percent.

The CNX Nifty is currently trading at 15083.70, up by 101.70 points or 0.68% after trading in a range of 15065.35 and 15170.85. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were UPL up by 5.22%, Coal India up by 5.06%, ONGC up by 4.62%, Hindalco up by 4.27% and Indusind Bank was up by 3.80%. On the flip side, Nestle down by 1.20%, ICICI Bank down by 1.08%, Titan Company down by 1.06%, Asian Paints down by 0.80% and Ultratech Cement was down by 0.80% were the top losers.

All Asian markets were trading in green; Nikkei 225 surged 496.57 points or 1.67% to 30,168.27, Taiwan Weighted strengthened 239.65 points or 1.48% to 16,452.18, Jakarta Composite soared 36.53 points or 0.58% to 6,287.58, Straits Times advanced 46.14 points or 1.58% to 2,970.72, KOSPI rose 104.71 points or 3.50% to 3,099.69, Shanghai Composite gained 15.81 points or 0.44% to 3,579.89 and Hang Seng was up by 455.04 points or 1.53% to 30,173.28.

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