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Sensex, Nifty maintain gains in late morning deals

Indian equity benchmarks maintained gains in late morning deals, with both Sensex and Nifty trading with notable gains. Positive cues from other Asian markets helped key indices to maintain gaining rally. Domestic sentiments remained positive, as bolstered by improved domestic demand, India's services sector expanded for the fourth consecutive month in January as business activities quickened and rising business optimism is set to sustain the growth momentum. The seasonally-adjusted India Services Business Activity Index rose from 52.3 in December to 52.8 in January, pointing to a quicker expansion in output. The index was above the critical 50 mark that separates growth from contraction for the fourth month in a row during January.

On the global front, Asian markets were trading mostly in green, after the services sector in China continued to expand in January, although at a slower rate, the latest survey from Caixin showed on Wednesday with a services PMI Score of 52.0. That's down from 56.3 in December, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. The rate of growth was the softest seen since the current period of expansion began last May, driven by slower rises in both manufacturing and services activity. Growth of composite new business also weakened during January.

The BSE Sensex is currently trading at 50300.24, up by 502.52 points or 1.01% after trading in a range of 49515.88 and 50377.52. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.49%, while Small cap index was up by 1.46%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.90%, Telecom up by 2.25%, Utilities up by 2.00%, Power up by 1.91% and Industrials up by 1.73%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Indusind Bank up by 9.23%, Power Grid up by 5.18%, Mahindra & Mahindra up by 4.51%, Dr. Reddy’s Lab up by 4.39% and Sun Pharma up by 4.22%. On the flip side, Maruti Suzuki down by 1.72%, ITC down by 0.78%, Asian Paints down by 0.49%, Kotak Mahindra Bank down by 0.10% and Ultratech Cement down by 0.05% were the top losers.

Meanwhile, applauding the annual budgetary presentation by Finance Minister Nirmala Sitharaman, the US-India Strategic and Partnership Forum (USISPF) described it as bold and visionary, which would launch India’s economy into a growth trajectory. It added that the budget positions India towards its target of a $5 trillion economy.

USISPF president Mukesh Aghi said the Union Budget 2021-22 has taken into consideration the needs of all sectors of the economy, reflecting a robust growth plan for India to become a $5 trillion economy. He said increased government spending in critical areas of the economy such as agriculture, infrastructure, healthcare, education and defence was much needed. He also said ‘we believe that these measures along with an ambitious plan for the divestment of public sector undertakings, further opening of sectors like insurance and establishing an institutional framework for the corporate bond market will provide much-needed capital to the economy’.

Aghi said ‘the Indian government’s commitment to growth is also reflected in the milestones and timelines that it has set forth’ and added that the USISPF is confident that the global investment community will embrace the expansion of India’s economy over the next 12-24 months. The new Development Finance Institution will facilitate foreign investment in infrastructure, while the consolidation of the Securities Market Code will make the investment climate more welcoming to foreign capital. He noted that ‘multiple measures to simplify India’s tax code and dispute resolution are concrete steps to bring further predictability in the country’s tax environment and improving its business environment’.

The CNX Nifty is currently trading at 14802.45, up by 154.60 points or 1.06% after trading in a range of 14574.15 and 14828.85. There were 43 stocks advancing against 7 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 8.80%, Cipla up by 6.13%, Power Grid up by 5.05%, Mahindra & Mahindra up by 4.43% and Dr. Reddy’s Lab up by 4.37%. On the flip side, Maruti Suzuki down by 1.57%, ITC down by 0.78%, Shree Cement down by 0.70%, Ultratech Cement down by 0.58% and TCS down by 0.50% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 226.64 points or 0.8% to 28,588.81, Taiwan Weighted strengthened 76.96 points or 0.49% to 15,837.01, Jakarta Composite soared 79.89 points or 1.32% to 6,123.73, KOSPI rose 26.47 points or 0.85% to 3,123.28, Shanghai Composite gained 6.97 points or 0.2% to 3,540.65 and Straits Times advanced 17.25 points or 0.59% to 2,934.54. On the flip side, Hang Seng decreased 137.95 points or 0.47% to 29,110.75.

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