Benchmarks trade in fine fettle after gap-up opening

Indian equity benchmarks made gap-up opening on Wednesday and are trading in fine fettle with gains of around 2% each in early deals. All the sectoral indices were trading in green on BSE. Sun Pharma, Axis Bank and Larsen & Toubro are leading the gainers. Positive macro-economic data supported market sentiments.The government data showed that the consumer Price Index-based (CPI) inflation eased for the second month in a row in March, at 5.91%, on the back of further reduction in rate of food inflation. Traders took encouragement with report that the government may soon come up with details of a second stimulus package. Adding more optimism, a report stated that India may soon start trials of treatment protocols on coronavirus (Covid-19) patients using ayurvedic medicines. However, the International Monetary Fund (IMF) has cut its projection for India's economic growth to 1.9% for the current financial year, the lowest since the 1991 balance of payments (BoP) crisis, against its 5.8% forecast earlier.

On the global front, most of the Asian markets are trading lower as investors’ sentiment was dampened after the International Monetary Fund (IMF) warned that the global economy could see the worst recession since the Great Depression due to the coronavirus pandemic and the containment measures adopted to slow the outbreak. The IMF in its latest World Economic Outlook report said that the world GDP is set to contract 3% this year, thanks to the lockdowns imposed by countries across the world. In a January update to the WEO, the IMF had predicted 3.3% global growth this year.

Back home, the government has decided to extend the nation-wide lockdown till May 3. As per the report, confirmed COVID-19 cases in India stand at 10,815. The death toll from the outbreak in India is at 353. Maharashtra, Delhi and Tamil Nadu have reported the highest number of cases. In scrip specific development, Wipro advanced ahead of its Q4 numbers due out later in the day. Hindalco Industries surged after it acquired US-based Aluminium rolled products manufacturer Aleris Corporation.

The BSE Sensex is currently trading at 31234.79, up by 544.77 points or 1.78% after trading in a range of 31097.60 and 31400.36. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.79%, while Small cap index was up by 1.78%.

The gaining sectoral indices on the BSE were Capital Goods up by 3.01%, Healthcare up by 2.99%, Basic Materials up by 2.97%, Energy up by 2.53%, Industrials up by 2.31%, while there was no losers on BSE sectoral front.

The top gainers on the Sensex were Sun Pharma up by 4.74%, Axis Bank up by 4.42%, Larsen & Toubro up by 3.81%, ICICI Bank up by 3.58% and Indusind Bank up by 3.55%. On the flip side, Kotak Mahindra Bank down by 1.08%, Maruti Suzuki down by 0.81%, ONGC down by 0.53% and Titan Company down by 0.23% were the top losers.

Meanwhile, India’s retail inflation based on Consumer Price Index (CPI) slowed to four-month low of 5.91% in March, mainly due to easing prices of kitchen essentials like vegetables, eggs and meat. The retail inflation, which is factored in by the RBI to arrive at its monetary policy, has been on decline since last month. The previous low was 5.54% in November 2019. Besides, the inflation in the food basket was 8.76% in March 2020, lower from 10.81% in the previous month.

As per the data of the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, the CPI (Rural, Urban, Combined) on Base 2012=100 for March 2020, stood at 6.09%, 5.66% and 5.91%, respectively, compared to 1.80%, 4.10% and 2.86%, respectively in March 2019. The index value of CPI for combined stood at 148.7. The data also showed that consumer food price index (CFPI) for all India Rural and Urban for March 2020 stood at 8.88% and 8.59%, respectively, compared to -1.46% and 3.47%, respectively in March 2019. The index value of CFPI for combined stood at 147.8 for the month of March.

As per the data, inflation in eggs was 5.56% during March as compared to 7.28% in the previous month. The rate of price rise in vegetables was 18.63% as against 31.61% in February. The rate was also slower in fruit prices as well as pulses and related products. However, the inflation in milk and products was slightly higher in March over February. The data also showed that inflation in fuel and light segment was marginally higher at 6.59% in March, compares with 6.36% in February.

The CNX Nifty is currently trading at 9164.65, up by 170.80 points or 1.90% after trading in a range of 9114.35 and 9199.50. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were UPL up by 8.37%, Hindalco up by 5.76%, Axis Bank up by 4.67%, Sun Pharma up by 4.66% and Indusind Bank up by 4.42%. On the flip side, Zee Entertainment down by 1.64%, Kotak Mahindra Bank down by 1.03%, Maruti Suzuki down by 0.41% and ONGC down by 0.40% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 34.80 points or 0.18% to 19,604.01, Hang Seng declined 22.42 points or 0.09% to 24,412.98, Jakarta Composite weaknend 21.26 points or 0.45% to 4,685.23 and Shanghai Composite was down by 4.12 points or 0.15% to 2,823.16. On the other hand, Straits Times rose 0.44 points or 0.02% to 2,635.01 and Taiwan weighted gained 86.06 points or 0.83% to 10,419.00.