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Indian equity benchmarks were managing to hold their heads above water in late morning session, with both Sensex and Nifty trading in green terrain, despite negative cues from other Asian markets. Traders were positive, as Niti Aayog Vice Chairman Rajiv Kumar said that the global economic recovery is strengthening and this is the opportune moment for a change in the world order. He emphasised that a new world order will usher in if the global economy remains open. Besides, the Finance Ministry asked Indian Banks' Association (IBA) to play a pivotal role in the resurgence of the economy in the 75th year of India's independence.

On the global front, Asian markets were trading mostly in red, after Japan posted a merchandise trade deficit of 635.4 billion yen in August, the Ministry of Finance said on Thursday. That was well shy of expectations for a shortfall of 47.7 billion yen following the downwardly revised 439.4 billion yen surplus in July (originally 441 billion yen). Exports were up 26.2 percent on year, missing expectations for an increase of 34.0 percent and down from the 37.0 percent gain in the previous month.

The BSE Sensex is currently trading at 58833.09, up by 109.89 points or 0.19% after trading in a range of 58700.50 and 58908.18. There were 14 stocks advancing against 15 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 0.33%, while Small cap index was up by 0.01%.

The top gaining sectoral indices on the BSE were Telecom up by 1.88%, FMCG up by 1.42%, Bankex up by 1.15%, PSU up by 0.64% and Power up by 0.40%, while IT down by 0.89%, TECK down by 0.58%, Basic Materials down by 0.45%, Metal down by 0.38% and Consumer Durables down by 0.35% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 11.50%, ITC up by 6.83%, SBI up by 2.05%, Power Grid up by 1.21% and Bajaj Auto up by 0.82%. On the flip side, TCS down by 1.22%, Tech Mahindra down by 1.16%, Titan Co down by 0.98%, Infosys down by 0.91% and Tata Steel down by 0.89% were the top losers.

Meanwhile, Union Minister Anurag Thakur said the Union Cabinet has approved a Rs 26,058 crore production linked incentive (PLI) scheme for auto, auto-components and drone industry to enhance India's manufacturing capabilities. The new PLI scheme will now incentivize the emergence of advanced automotive technologies’ global supply chain in India. According to the PLI scheme, the incentives worth Rs 26,058 crore will be provided to industry over five years.

Thakur said that it is estimated that over a period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs. Under the PLI scheme existing auto sector players will have to make new investments of Rs 1,000 crore over the next five years to benefit from the scheme. New players will have to invest over Rs 2,000 crore. Also new players in the auto component sector will have to invest Rs 500 crore while existing players will have to invest Rs 250 crores to reap the scheme benefits.

Meanwhile, the PLI scheme for the drones and drone components industry looks to promote the strategic, tactical and operational use of this technology.  He said ‘A product-specific PLI scheme for drones with clear revenue targets and a focus on domestic value addition is key to building capacity and making these key drivers of India's growth strategy.’

The CNX Nifty is currently trading at 17547.65, up by 28.20 points or 0.16% after trading in a range of 17510.45 and 17576.90. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 11.16%, ITC up by 6.81%, SBI up by 2.15%, Power Grid up by 1.21% and Hero MotoCorp up by 0.95%. On the flip side, BPCL down by 10.40%, Coal India down by 1.49%, Tech Mahindra down by 1.24%, TCS down by 1.23% and Tata Steel down by 1.11% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 494.39 points or 1.97% to 24,538.82, Nikkei 225 slipped 196.32 points or 0.64% to 30,315.39, Taiwan Weighted dropped 74.41 points or 0.43% to 17,279.59, Shanghai Composite declined 24.77 points or 0.68% to 3,631.45 and KOSPI fell 11.71 points or 0.37% to 3,141.69. On the flip side, Jakarta Composite soared 1.56 points or 0.03% to 6,111.79 and Straits Times advanced 7.92 points or 0.26% to 3,066.53.

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