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Bulls hold tight grip over Dalal Street
Jan-19-2021

Indian equity benchmarks were trading with strong gains in late morning session, as bulls held their tight grip over the Dalal Street. Positive cues from other Asian markets helped key indices to maintain their gaining rally. Domestic sentiments were positive, as the Finance Ministry has released the 12th instalment of Rs 6,000 crore to states to meet the GST compensation shortfall, taking the total amount released so far under this window to Rs 72,000 crore. The Centre had set up a special borrowing window in October 2020 to meet the estimated shortfall of Rs 1.10 lakh crore in revenue arising on account of implementation of Goods and Services Tax (GST).

On the global front, Asian markets were trading mostly in green, even after Japan's industrial production declined for the first time in six months in November. The final data from the Ministry of Economy, Trade and Industry showed that industrial output dropped 0.5 percent month-on-month, in contrast to October's 4 percent increase and the flash estimate of nil growth. This was the first fall in six months. Shipments fell 1.2 percent, in contrast to previous month's 4.9 percent increase. The rate was revised from -0.9 percent estimated previously.

The BSE Sensex is currently trading at 49201.10, up by 636.83 points or 1.31% after trading in a range of 48805.54 and 49201.58. There were 25 stocks advancing against 4 stocks declining, while 1 stock remains unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.82%, while Small cap index was up by 1.54%.

The top gaining sectoral indices on the BSE were Realty up by 3.86%, Capital Goods up by 2.79%, Industrials up by 2.54%, Metal up by 2.15% and Energy up by 1.88%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.84%, Bajaj Finserv up by 3.82%, Larsen & Toubro up by 3.18%, HDFC up by 2.18% and Reliance Industries up by 1.94%. On the flip side, Tech Mahindra down by 0.88%, Mahindra & Mahindra down by 0.35%, Dr. Reddy’s Lab down by 0.11% and ITC down by 0.09% were the top losers.

Meanwhile, S&P Global Ratings in its report titled 'Tech Disruption in retail banking: Top tier banks lead the change' has said India's banking system's low profitability and weak asset quality present some difficulties in significantly boosting digitalisation for several state-owned and smaller private-sector banks. However, it said India's digital disruption poses a relatively low risk to its top-tier banks' longstanding market position.

It said COVID-19 restrictions have been a boost for India's major digital payment system Unified Payment Interface (UPI). The value of transactions processed via the UPI almost doubled in June to November 2020 from the year-ago period.

It added ‘We expect this shift in consumer preferences to remain. Rising smartphone penetration, increasing internet connectivity, and the young, tech-savvy demographic segment present vast opportunities in India for existing banks and new players.’ It mentioned many banks in India have been quick to embrace new technologies to cater to a vast and growing, young, tech-savvy customer base.

The CNX Nifty is currently trading at 14463.20, up by 181.90 points or 1.27% after trading in a range of 14350.85 and 14468.40. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 4.71%, Bajaj Finserv up by 3.86%, Tata Motors up by 3.82%, Bajaj Finance up by 3.69% and Larsen & Toubro up by 3.22%. On the flip side, Tech Mahindra down by 0.88%, Mahindra & Mahindra down by 0.44%, Britannia Inds down by 0.31% and ITC down by 0.07% were the top losers.

Asian markets were trading mostly in green; Nikkei surged 397.28 points or 1.41% to 28,639.49, Straits Times gained 13.84 points or 0.46% to 3,004.24, Hang Seng jumped 889.92 points or 3.08% to 29,752.69, Taiwan Weighted soared 219.57 points or 1.41% to 15,831.57 and KOSPI added 74.66 points or 2.48% to 3,088.59. On the other hand, Jakarta Composite lost 17.47 points or 0.27% to 6,372.36 and Shanghai Composite was down by 0.12 points to 3,596.10.
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