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Indian equity benchmarks cut some gains in late morning session, but remained in green terrain, on the back of positive cues from other Asian markets. Domestic sentiments were positive, amid reports that stakeholders' interest is growing in non-financial performance of businesses and there is a deep realization that sustainability issues have a clear correlation with business outcomes and the ability of companies to create long-term value. However, gains got trimmed in the markets, as the Asian Development Bank (ADB) said that the coronavirus pandemic may have pushed as many as 80 million people in developing Asia into extreme poverty last year, threatening to derail progress on global goals to tackle poverty and hunger by 2030.

On the global front, Asian markets were trading mostly in green, even after business sentiment in South Korea ebbed in August, the latest survey from the Bank of Korea showed on Wednesday with a business confidence index score of 95.0 - down from 97.0 in July. The outlook for the following month rose by 4 points to 96. In the non-manufacturing sector, the BSI on business conditions for August was 81, up 2 points from the previous month. The outlook for the following month also rose by 3 points to 81.

The BSE Sensex is currently trading at 56010.36, up by 51.38 points or 0.09% after trading in a range of 55920.53 and 56198.13. There were 8 stocks advancing against 21 stocks declining, while 1 stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index was up by 0.71%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.36%, Energy up by 1.15%, Power up by 0.97%, Metal up by 0.86% and Utilities up by 0.83%, while Telecom down by 0.58%, Realty down by 0.43%, Bankex down by 0.38%, Healthcare down by 0.37% and Consumer Durables down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 1.50%, TCS up by 1.43%, Reliance Industries up by 0.97%, ITC up by 0.75% and Infosys up by 0.65%. On the flip side, Bajaj Finserv down by 2.49%, Titan Co down by 1.21%, Bharti Airtel down by 1.06%, Dr. Reddy's Lab down by 0.98% and Ultratech Cement down by 0.60% were the top losers.

Meanwhile, Finance Secretary T V Somanathan has said the government is considering to introduce insurance bonds as an alternative to bank guarantees. Bank guarantees are usually asked for while extending a loan and typically require a collateral. An insurance bond is also a surety but it does not require any collateral. As per reports last year, insurance regulator Irdai was also looking at the option of insurers offering surety bonds in the context of road projects. On the issue of arbitration awards being appealed, Somanathan said there is a need for a behaviourial change and added that the government trusts wealth creators.

Finance Minister Nirmala Sitharaman has said the government is committed to working towards ensuring policy certainty, adding that the regulators also have a key role in ensuring the same. She said the government is working with the regulators on this ‘important issue’. The minister emphasised the importance of 'India's own equity capital' while addressing the industry and assured government facilitation for sunrise sectors and startups.

Sitharaman also assured the industry of addressing issues related to competitiveness, including high power tariffs, and matters related to cumbersome regulatory compliances. Sitharaman said the economy is moving gradually from a bank-led lending model to a more market-based finance model and the operationalisation of the Development Finance Institution (DFI) will ensure long-term lending for projects. The DFI will increase competition for banks and also improve their efficiency.

The CNX Nifty is currently trading at 16654.75, up by 30.15 points or 0.18% after trading in a range of 16629.80 and 16712.45. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.70%, HDFC Life Insurance up by 2.39%, ONGC up by 2.34%, Adani Ports & SEZ up by 2.27% and Hindalco up by 2.04%. On the flip side, Bajaj Finserv down by 2.26%, Titan Co down by 1.25%, Cipla down by 1.12%, Bharti Airtel down by 1.08% and Dr. Reddy's Lab down by 0.93% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 152.90 points or 0.91% to 16,971.63, Jakarta Composite soared 14.42 points or 0.24% to 6,103.92, Shanghai Composite gained 12.02 points or 0.34% to 3,526.49 and Straits Times advanced 1.92 points or 0.06% to 3,109.54. On the flip side, KOSPI fell 4.21 points or 0.13% to 3,134.09, Nikkei 225 slipped 16.81 points or 0.06% to 27,715.29 and Hang Seng decreased 93.54 points or 0.36% to 25,634.38.

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