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Sensex, Nifty remain bullish in late morning deals
Aug-10-2020

Extending their gains, Indian equity benchmarks remained bullish in late morning deals. Positive cues from other Asian markets were supporting markets to maintain their gaining momentum. Domestic sentiments were positive, amid private reports stating that despite several businesses remaining closed during the lockdown, 81 per cent of micro enterprises polled are confident of a recovery post COVID-19 whereas 57 per cent reported not having any cash reserves to survive. Initial results of a six-month survey that is underway by GAME (Global Alliance for Mass Entrepreneurship) in association with LEAD at Krea University covering 1,500 micro enterprises also reveal that 40 per cent tried to borrow money to cover expenses. However, only 14 per cent of the overall borrowing was from formal borrowing sources.

On the global front, Asian markets were trading mostly higher, even after China's consumer price inflation accelerated in July on higher food costs as regional flooding disrupted transportation, and the decline in factory gate prices slowed further reflecting the recovery in economic activity. The official data showed that inflation rose to 2.7 percent in July from 2.5 percent in June. Food prices advanced 13.2 percent annually as pork prices surged 85.7 percent amid supply disruptions. Food price inflation increased from 11.1 percent in June.

The BSE Sensex is currently trading at 38418.14, up by 377.57 points or 0.99% after trading in a range of 38163.71 and 38430.69. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.50%, while Small cap index was up by 1.47%.

The top gaining sectoral indices on the BSE were Healthcare up by 4.54%, Capital Goods up by 4.02%, Industrials up by 2.52%, Realty up by 1.58% and Auto up by 1.58%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 6.16%, Larsen & Toubro up by 5.65%, Sun Pharma up by 4.43%, Kotak Mahindra Bank up by 2.57% and NTPC up by 2.10%. On the flip side, Asian Paints down by 1.00%, Maruti Suzuki down by 0.39%, Ultratech Cement down by 0.19%, Tata Steel down by 0.11% and Bajaj Auto down by 0.11% were the top losers.

Meanwhile, the government has issued draft notification for separate emission norms for agriculture machinery and construction equipment vehicles. The notification also provides for changing the nomenclature of emission norms from Bharat Stage to TREM Stage to avoid any confusion. The Ministry of Road Transport and Highways (MoRTH) said ‘it has invited suggestions and comments from public and all the stakeholders on a draft notification proposing to amend CMVR (Central Motor Vehicles Rules) 1989 ... to separate the emission norms for agricultural machinery (agricultural tractors, power tillers and combined harvesters) and construction equipment vehicles’.

The notification also aims at changing the nomenclature of emission norms from Bharat Stage (CEV/TREM) IV and Bharat Stage (CEV/TREM) V to TREM Stage-IV and TREM Stage-V for agricultural tractors and other equipment and CEV Stage IV and CEV Stage-V for the construction equipment vehicles. This has been done to avoid any confusion, between the emission norms of other motor vehicles which has BS as norms.

Further, considering the request of the Ministry of Agriculture, tractor manufacturers and agriculture associations to provide some more time in implementing the next stage of emission norms for tractors (TREM Stage-IV) applicable w.e.f October 1, 2020 the same has been proposed to be deferred to October 1, 2021. Also for the CEVs the applicability of next phase of emission norms are proposed to be applicable from April 1, 2021, providing a deferment of six months. The ministry said that suggestions or comments in this respect can be sent to the Joint Secretary (MVL), Ministry of Road Transport and Highways, Transport Bhavan, New Delhi within 30 days from the date of notification.

The CNX Nifty is currently trading at 11328.20, up by 114.15 points or 1.02% after trading in a range of 11261.10 and 11337.30. There were 40 stocks advancing against 9 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Cipla up by 9.19%, Mahindra & Mahindra up by 6.42%, Larsen & Toubro up by 5.82%, Tata Motors up by 4.28% and Sun Pharma up by 4.23%. On the flip side, Grasim Industries down by 1.18%, Asian Paints down by 1.18%, BPCL down by 0.70%, Hindalco down by 0.65% and Hero MotoCorp down by 0.52% 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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