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Benchmarks continue to trade on positive note in morning deals
Oct-22-2021

Indian equity benchmarks continued to trade on a positive note in morning deals, led by gains in Realty, Telecom and Banking stocks. Traders took support with Commerce and Industry Minister Piyush Goyal’s statement that all indicators, including GDP, foreign direct investment (FDI) inflows and exports growth, are pointing towards a clear and sharp economic recovery in the country. He said forex reserves have constantly grown from $433 billion in September 2019 to $638 billion in September this year, while FDI inflows in the first four months of the current fiscal rose by 62 per cent, which is higher than the corresponding figure last year. Adding to the optimism, India Inc cheered as the country achieved the milestone of administering 100 crore COVID-19 vaccine doses, saying it will help place the economy on a high-growth path by attracting more investments.

On the global front, Asian markets were trading mostly in green as shares of China Evergrande Group surged in Hong Kong following media reports that the embattled developer is set to pay off a coupon payment on a dollar-denominated bond. Back home, on the sectoral front, stocks related to textiles sector remained in focus as Minister of State for Textiles Darshana Jardosh said the Centre has set an ambitious target of achieving $100 billion from the country's textiles exports in the next five years.

The BSE Sensex is currently trading at 61342.90, up by 419.40 points or 0.69% after trading in a range of 61005.56 and 61420.13. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.51%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Realty up by 2.93%, Telecom up by 0.96%, Consumer Durables up by 0.71%, Bankex up by 0.65% and Consumer discretionary up by 0.59%, while Metal down by 1.22%, Basic Materials down by 0.18%, IT down by 0.16%, Healthcare down by 0.12% and Oil & Gas down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.33%, HDFC up by 3.09%, Bajaj Finance up by 2.22%, Bajaj Auto up by 1.70% and HDFC Bank up by 1.65%. On the flip side, Asian Paints down by 1.46%, NTPC down by 1.08%, ITC down by 0.90%, HCL Technologies down by 0.81% and Infosys down by 0.73% were the top losers.

Meanwhile, Union Minister Hardeep Singh Puri has exuded confidence that India will become a $5-trillion economy by 2024-25 and $10-trillion by 2030. On economic growth momentum, he said petrol consumption is 16% higher than pre-COVID levels, while diesel consumption is 10-12% higher. He noted that even the stock market has registered a growth of 250% since March 2020.

Puri mentioned that the pandemic has led to a different set of growth drivers -- revival of health sector, exports, global manufacturing risk index, increased economic activity, achieving renewable energy target and initiative like Gati Shakti, Foreign exchange reserve. On high energy and oil prices, he said the supply curve has been kept below the demand curve, which leads to high prices.

The minister said high price of energy undermines global economic recovery. He said the ideal is to release increased production in the market and that will be in the interest of the producing country also. For India, he said Centre and state in the spirit of cooperative federalism need to pool their resources to keep prices in check.
The CNX Nifty is currently trading at 18280.30, up by 102.20 points or 0.56% after trading in a range of 18204.20 and 18314.25. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.34%, HDFC up by 3.12%, Bajaj Finance up by 2.30%, Bajaj Auto up by 1.80% and HDFC Bank up by 1.58%. On the flip side, Coal India down by 1.81%, Asian Paints down by 1.69%, Hindalco down by 1.60%, NTPC down by 1.12% and Eicher Motors down by 1.05% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 109.29 points or 0.38% to 28,817.87, Hang Seng increased 115.37 points or 0.44% to 26,132.90, Jakarta Composite soared 2.99 points or 0.05% to 6,635.96, KOSPI rose 2.52 points or 0.08% to 3,009.85, Straits Times advanced 9.94 points or 0.31% to 3,198.44 and Shanghai Composite gained 3.40 points or 0.09% to 3,598.18, while Taiwan Weighted dropped 6.25 points or 0.04% to 16,883.26.

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