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Benchmarks continue to trade higher in morning session
Aug-10-2020

Indian equity markets continued to trade higher in morning session on fresh buying by investors amid a firming trend in Asian markets. Sentiments remained positive with Commerce and Industry Minister Piyush Goyal’s statement that the world is looking for trusted partners where there is rule of law, transparency in systems, strong judiciary and democratic traditions, and India can become a key player in global supply chains as it provides all of these. He said India has to engage with the world with competitive prices, high-quality products, large scale economies of manufacturing, high productivity levels, but not on the crutches of government subsidies. Adding the optimism among investors, Union minister Nitin Gadkari has urged the industry to identify the sectors heavily reliant on imports, particularly from China, and look for substitutes towards indigenous production to make India a super power. On the sectoral front, stocks related to defence sector remained in limelight as India Inc said the Centre's decision to impose restrictions on import of 101 weapons and military platforms, and creation of a separate budget for domestic capital procurement in the current financial year is a 'path-breaking' reform towards becoming self-reliant and will boost indigenous defence manufacturing.

On the global front, Asian markets were trading mostly higher, amid report that China's industrial output is steadily returning to levels seen before the pandemic paralysed huge swathes of the economy, as pent-up demand, government stimulus and surprisingly resilient exports propel a recovery. However, gains remain capped as investors kept one eye on flaring tensions between the United States and China and another eye on U.S. fiscal stimulus after talks between the White House and Democrat lawmakers broke down.

The BSE Sensex is currently trading at 38362.90, up by 322.33 points or 0.85% after trading in a range of 38163.71 and 38420.68. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.46%, while Small cap index was up by 1.25%.

The top gaining sectoral indices on the BSE were Capital Goods up by 3.64%, Healthcare up by 3.59%, Industrials up by 2.19%, Auto up by 1.48% and Power up by 1.24%, while Metal down by 0.47% was the only losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 5.77%, Larsen & Toubro up by 4.77%, Sun Pharma up by 2.09%, Kotak Mahindra Bank up by 2.08% and SBI up by 2.02%. On the flip side, Asian Paints down by 0.72%, Tata Steel down by 0.69%, Ultratech Cement down by 0.53%, Bharti Airtel down by 0.40% and HCL Technologies down by 0.30% were the top losers.

Meanwhile, NITI Aayog CEO Amitabh Kant has said India's foreign direct investment (FDI) regime is the most liberal in the world, and even during the Covid-19 pandemic, the country has attracted over $22 billion worth of direct investments. He further said that almost 90 per cent plus of the $22 billion FDI in India during the pandemic came through the automatic route. 

He pointed out that India has jumped up about 79 positions in the World Bank's ease of doing business. He mentioned ‘our hope is that this year we will get into top 50.’

Besides, he said that if India wants to transform then it needs a programme like aspirational district programme. Aspirational districts programme, launched in January 2018, aims to transform 112 districts that have shown relatively lesser progress in key social areas and have emerged as pockets of under-development.
The CNX Nifty is currently trading at 11313.15, up by 99.10 points or 0.88% after trading in a range of 11261.10 and 11326.50. There were 39 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Cipla up by 6.22%, Mahindra & Mahindra up by 5.65%, Larsen & Toubro up by 4.83%, Tata Motors up by 3.02% and UPL up by 2.09%. On the flip side, Hindalco down by 1.41%, Hero MotoCorp down by 0.66%, Asian Paints down by 0.61%, Ultratech Cement down by 0.52% and HCL Technologies down by 0.49% were the top losers.

Asian markets were trading mostly higher; Taiwan Weighted strengthened 71.37 points or 0.56% to 12,900.24, KOSPI rose 32.44 points or 1.38% to 2,384.11, Shanghai Composite gained 14.23 points or 0.42% to 3,368.27 and Jakarta Composite soared 2.09 points or 0.04% to 5,145.98.

On the flip side, Hang Seng decreased 87.89 points or 0.36% to 24,443.73.
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