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Equity parameters trade firm in afternoon deals
Jan-20-2021

Indian equity markets were trading in fine fettle with Sensex and Nifty crossing 49,600 and 14,550 levels in the afternoon session due to buying in auto, IT and TECK stocks. Gains in frontline blue chip stocks such as Tech Mahindra, Maruti Suzuki and HCL Tech also helped lift the markets. Sentiments were upbeat with report stating that the ongoing key reforms such as sops for manufacturing, easier labour laws, wooing FDI inflows and privatisation will help improve productivity and support long-term growth at 7.5-8 per cent levels, which if played out well, can help India contribute 15 per cent of global GDP growth by FY2026. On sectoral front, oil stocks were in limelight with private report penning that India's crude oil imports in December soared to the highest levels in nearly three years to more than 5 million barrels per day (bpd) as its refiners cranked up output to meet a rebound in fuel demand.

On the global front, Asian markets were trading mixed even after U.S. Treasury Secretary nominee Janet Yellen advocated for a hefty fiscal relief package to help the world’s largest economy ride out a pandemic-driven slump. Home turf, Indigo Paints, the fifth largest decorative paint company in India, opens its initial public offering for subscription from today with a price band at Rs 1,488-1,490 per share.

The BSE Sensex is currently trading at 49644.43, up by 246.14 points or 0.50% after trading in a range of 49373.68 and 49722.61. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.88%, while Small cap index was up by 0.78%.

The top gaining sectoral indices on the BSE were Auto up by 1.96%, IT up by 1.77%, TECK up by 1.62%, Industrials up by 1.44%, Consumer Discretionary was up by 1.21%, while PSU down by 0.26%, Oil & Gas down by 0.13% and Utilities was down by 0.11% were the few losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.51%, Maruti Suzuki up by 2.03%, HCL Tech up by 1.96%, Infosys up by 1.82% and Asian Paints was up by 1.68%. On the flip side, NTPC down by 1.40%, ITC down by 0.94%, HDFC Bank down by 0.79%, HDFC down by 0.46% and Kotak Mahindra Bank was down by 0.45% were the top losers.

Meanwhile, government is considering to tweak norms for e-commerce companies having foreign direct investment (FDI) to prohibit them from selling products of vendors in which these online marketplaces or their parent firms hold stake indirectly.

In December 2018, the government had barred the online marketplace players from selling products of companies in which they have a direct stake. As per the current policy, 100 percent foreign direct investment is permitted in marketplace e-commerce but it is prohibited in inventory-based activities.

The consideration assumes significance as domestic traders body Confederation of All India Traders (CAIT) has alleged that these companies are violating FEMA and FDI rules. According to CAIT, the commerce and industry ministry has forwarded representations of alleged violations by Amazon and Flipkart to the Enforcement Directorate and the Reserve Bank for ‘necessary action’.

The CNX Nifty is currently trading at 14599.85, up by 78.70 points or 0.54% after trading in a range of 14517.55 and 14623.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 6.65%, Wipro up by 3.23%, Adani Ports up by 2.97%, Tech Mahindra up by 2.57% and Maruti Suzuki was up by 2.11%. On the flip side, NTPC down by 1.30%, Shree Cement down by 1.16%, Grasim Industries down by 1.14%, GAIL India down by 1.11% and ITC was down by 0.89% were the top losers.

Asian markets were trading mixed; KOSPI rose 20.72 points or 0.67% to 3,113.38, Hang Seng increased 191.13 points or 0.64% to 29,833.41, Jakarta Composite soared 82.97 points or 1.31% to 6,404.83 and Shanghai Composite was up by 4.79 points or 0.13% to 3,571.17

On the flip side; Nikkei 225 slipped 110.20 points or 0.38% to 28,523.26, Taiwan Weighted dropped 71.19 points or 0.45% to 15,806.18 and Straits Times was down by 6.57 points or 0.22% to 2,989.35.
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