Sensex and Nifty Close in Green Amidst Volatile Trades

Bajaj Finance and Asian Paints are soaring in profits as top index gainers, Pharma Indices, and Nifty IT continue to trade in the red zone. As observed in today’s brokering session, trading had been going on in the lower territory for equity benchmark Sensex. The BSE Graph indicates a turbulent trading session, especially at 14:30 hours, when Sensex was at 38,063.05 with Reliance Industries, Bajaj Finance, and Asian Paints as the top-ranking contributors.

The Senior Analyst (Commodities) of HDFC Securities, Tapan Patel, said that the prices of crude oil were within a consistent range, even though the price of crude oil NYMEX WTI traded at less than $42 last Friday. The August futures of MCX crude oil traded at 3135 INR at almost half a percentage below the anticipated level. The slow process of financial recovery paired with an expectation of higher supply from the OPEC plus countries contributes to the maintenance of an upper limit in the prices of crude oil.

However, a great pressure is acting on the crude oil prices as of now. The global pandemic induced by the spread of COVID infection and the tension prevalent between China and the US are the factors that are driving down the prices of crude oil in spite of the promising equity indices. Financial experts and shareholders anticipate the price of crude oil to trade either sideways or downward for a day, with a favorable steadiness at $40 and a resistance at $43.

The net profit of Mahanagar Gas Q1 reduced by 72.8% to from 166.60 crore INR to 45.25 crore INR. The profit of Adani Transmission Q1 has increased by 66.5% from 213.4 crore INR to 355.4 crore INR.

Bitcoin, Cryptocurrency Trading Gets Legal Status in India; SC Lifts Ban

In a huge relief for the Indian crypto community, the Supreme Court of India has finally lifted the ban imposed by the Reserve Bank of India on trading in cryptocurrency. The Apex Court has now permitted trading in cryptocurrency. Earlier, the RBI in 2018 had decided to tighten the rules that aimed to discourage the usage of virtual currencies such as Bitcoins.

With today’s decision of Apex Court, the sector has heaved a sigh of relief because, till now, the Central Bank’s rules regarding the cryptocurrency had restricted the lenders from enabling banking transactions for cryptocurrency exchanges and traders.

Earlier, a plea was filed by the Internet and Mobile Association of India (IMAI) protesting the ban imposed by the RBI. The RBI’s move to ban cryptocurrency had led to the banning of legal business activity through virtual currencies.

The decision to lift the ban on cryptocurrency was taken by a three-judge bench, including Aniruddha Bose, Rohinton Nariman, and V Ramasubramanian. Meanwhile, a thorough judgment on the move by Apex Court is expected by the evening.

Meanwhile, the IMAI had contended that cryptocurrency should be considered as a commodity instead of a currency. IMAI had said that RBI lacked the powers to thrust such a ban when there is no such law regarding banning the cryptocurrency. 

Meanwhile, RBI, on its part, said that it has been alerting users since 2013 about cryptocurrencies and it treats crypto as a digital mode of payment that may put the payment system of the country in jeopardy. The RBI was of the opinion that this payment system should have been nipped in the bud.

Additionally, RBI also emphasized that it has the necessary powers to make decisions regarding the banning of cryptocurrencies.

RBI had earlier given entities three months’ tenure to break every banking relation with people or businesses dealing in cryptocurrency.

Bitcoin has emerged as the most famous and largest among cryptocurrencies. Bitcoin has already appreciated by nearly half till now in 2020. Last month in 2020, Bitcoin had touched the $10,000 mark against the USD for the first time since October 2019.