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Markets add gains in late morning deals
Jan-20-2021

Indian equity benchmarks added gains in late morning session, with both the Sensex and the Nifty trading with notable gains. Key indices maintained their gains despite mixed cues from other Asian markets. Sentiments on the street remained positive, as markets regulator Sebi extended relaxations for companies with regards to compliance with procedural norms pertaining to rights issues opening till March 31 amid the ongoing coronavirus pandemic. Earlier, this relaxation was given for rights issues opening till July 31, 2020, which was further extended till December 31, 2020.

On the global front, Asian markets were trading mixed, after China's benchmark lending rates were left unchanged as widely expected. The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent. The one-year and five-year loan prime rates were last lowered in April 2020. The one-year loan prime rate was cut by 20 basis points and five-year rate by 10 basis points in April.

The BSE Sensex is currently trading at 49667.46, up by 269.17 points or 0.54% after trading in a range of 49373.68 and 49722.61. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.94%, while Small cap index was up by 0.82%.

The top gaining sectoral indices on the BSE were IT up by 1.84%, TECK up by 1.55%, Auto up by 1.32%, Industrials up by 1.31% and Consumer discretionary up by 0.95%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were HCL Tech up by 2.49%, Tech Mahindra up by 2.45%, Infosys up by 1.85%, Asian Paints up by 1.77% and Axis Bank up by 1.59%. On the flip side, NTPC down by 1.00%, ITC down by 0.78%, Kotak Mahindra Bank down by 0.54%, HDFC Bank down by 0.50% and HDFC down by 0.30% were the top losers.

Meanwhile, investment through participatory notes (P-notes) in the domestic capital market rose to a 31-month high of Rs 87,132 crore at December-end, reflecting the bullish stance of FPIs. According to Securities and Exchange Board of India (Sebi) data, the value of P-note investments in Indian markets - equity, debt, and hybrid securities - increased to Rs 87,132 crore till December-end from Rs 83,114 crore at the November-end.

This is the highest level of investment since May 2018, when the fund inflow through this route stood at Rs 93,497 crore. P-notes investment was Rs 78,686 crore at the end of October 2020, although it had declined to Rs 69,82 crore in September after witnessing growth since March. The investment level was Rs 74,027 crore in August, Rs 63,228 crore (July), Rs 62,138 crore (June), Rs 60,027 crore (May) and Rs 57,100 crore (April).

The investment level fell to an over 15-year-low of Rs 48,006 crore at the end of March amid significant volatility in broader markets on concerns over the coronavirus-triggered crisis. P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

The CNX Nifty is currently trading at 14612.20, up by 91.05 points or 0.63% after trading in a range of 14517.55 and 14623.55. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 5.08%, Wipro up by 3.45%, Tech Mahindra up by 2.52%, HCL Tech up by 2.35% and Adani Ports & SEZ up by 2.25%. On the flip side, NTPC down by 1.05%, Shree Cement down by 0.97%, Grasim Industries down by 0.95%, ITC down by 0.64% and HDFC Bank down by 0.59% were the top losers.

Asian markets were trading mixed; Hang Seng rose 88.72 points or 0.30% to 29,731.00, KOSPI added 0.70 points or 0.02% to 3,093.36, Jakarta Composite surged 81.18 points or 1.28% to 6,403.04 and Shanghai Composite was up by 0.29 points or 0.01% to 3,566.67. On the other hand, Nikkei declined 190.46 points or 0.67% to 28,443.00, Straits Times lost 7.92 points or 0.26% to 2,988.00 and Taiwan Weighted fell 47.78 points or 0.30% to 15,829.59.
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