Share markets in India are trading on a positive note in today's rangebound session, following the positive trend in Asian markets.
The BSE Sensex is trading up by 203 points, at 38,100 levels.
Meanwhile, the NSE Nifty is trading up by 67 points.
The BSE Mid Cap index is trading up by 0.6%.
The BSE Small Cap index is trading up by 0.5%.
On the sectoral front, gains are largely seen in the IT sector and the automobile sector.
Consumer durable stocks, on the other hand, are witnessing selling pressure.
The rupee is trading at 74.75 against the US$.
Gold Prices are trading up by 0.1% at Rs 52,158.
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Speaking of the current stock market scenario, have a look at the chart below which shows how the BSE Sensex and the smallcap index have moved over the past year:
The markets are coming out of the deep fall. An important driver of this rally is the increasing inflow from foreign institutional investors now that the global economies have opened the liquidity trap.
A lot of this money is coming to the mid and smallcap space.
In news from the banking sector, the government is working on completing the stake sale process of about 23 public sector companies whose divestment has already been cleared by the Cabinet, Finance Minister Nirmala Sitharaman said on Monday.
The minister also said she would soon meet small finance firms and non-banking finance companies (NBFCs) to review the credit being extended by them to businesses.
Sitharaman, in a conversation with Hero Enterprise Chairman Sunil Kant Munjal, said the government as part of the Aatmanirbhar Bharat package had announced opening up of all sectors for private participation. "The final call as to which are the sectors which are going to be called ''strategic'' is not made yet, that has to be announced and I can't preempt what announcement is likely to come" she added.
Talking about disinvestment plans, the minister said the government wants to sell stake in public sector companies at a time when it fetches the right price. "There are already nearly 22-23 such PSUs which have been cleared by the Cabinet for disinvestment. The intent is clear that at least for those which had already been cleared by the Cabinet, we will have to disinvest," Sitharaman said.
For 2020-21 fiscal, the government has set a disinvestment target of Rs 2.10 lakh crore. Of this, Rs 1.20 lakh crore will come from disinvestment of public sector undertakings and another Rs 900 billion from stake sale in financial institutions.
With regard to extending credit to the industry, Sitharaman said under the Emergency Credit Line Guarantee Scheme (ECLGS), micro, small and medium enterprises (MSMEs) can avail loans.
As of July 23, 2020, the total amount sanctioned under the 100% Emergency Credit Line Guarantee Scheme by public and private sector banks stands at Rs 1,304.92 billion, of which Rs 820.7 billion has already been disbursed.
How the disinvestment target plans pan out remains to be seen. We will keep you updated on the latest developments from this space.
Moving on to news from the IT sector, Tech Mahindra is among the top buzzing stocks today.
Shares of the company gained as much as 6% today after the company's April-June quarter (Q1FY21) earnings beat Street estimate.
The IT services firm's revenues declined 6.7% quarter on quarter (QoQ) to US$ 1,207.5 million. However, they were above the estimates by analysts and brokerages who had estimated a decline of 8.3%, sequentially.
The company reported profit before tax (PBT) of Rs 12.8 billion, up 32.9% sequentially. Its consolidated net profit grew 20.9% on a QoQ basis at Rs 9.7 billion.
Operating margin expanded by 10 basis points (bps) to 14.3% on a sequential basis.
New deal wins stood at US$ 290 million during the quarter under review.
Tech Mahindra's share price is presently trading up by 3.2%.
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