Benchmarks add gains in late afternoon session

The Indian equity benchmarks added gains to continue firm trade in the late afternoon session on account of buying in front line counters. The broader indices, BSE Mid cap index and Small cap index are also trading with over a percent each. Traders took support with Retirement fund body, Employees' Provident Fund Organisation (EPFO) latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 572924 new jobs in the month of March 2020 as against revised figure of 1021697 in February 2020. Traders shrugged off ICRA report as it has warned of a deep recession as it drastically lowered FY21 growth forecast for India to minus 5 percent, citing the very modest fiscal support, extension of the nationwide lockdown and looming labour shortage. It also sharply revised downwards the growth contraction in Q1 to 25 percent as against the previous forecast of 16-20 percent and to minus 2.1 percent in Q2 from 2.1 percent growth previously, which implies a recession. Sector wise, aviation stocks remained in focus with report that India will resume domestic flights in a calibrated manner from May 25 as passengers follow prevention guidelines for coronavirus.

On the global front, European markets were trading lower, as investors digest growth forecast from the European Commission. The entity now expects the EU-wide GDP to plunge by -7.4% in 2020 against the previous +1.4% forecast.

The BSE Sensex is currently trading at 31142.06, up by 323.45 points or 1.05% after trading in a range of 30765.32 and 31187.15. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.34%, while Small cap index was up by 1.49%.

The top gaining sectoral indices on the BSE were Auto up by 2.88%, Metal up by 2.36%, Consumer Discretionary up by 2.27%, IT up by 1.45% and FMCG was up by 1.37%, while Power down by 0.87%, Utilities down by 0.38%, Capital Goods down by 0.36% and Telecom was down by 0.09% were top the losing indices on BSE.

The top gainers on the Sensex were ITC up by 4.86%, Bajaj Auto up by 4.33%, Hero MotoCorp up by 4.13%, Maruti Suzuki up by 3.40% and Asian Paints up by 3.18%. On the flip side, NTPC down by 2.31%, Larsen & Toubro down by 1.68%, ONGC down by 1.15%, Hindustan Unilever down by 0.57% and Bharti Airtel down by 0.45% were the top losers.

Meanwhile, the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 572924 new jobs in the month of March 2020 as against revised figure of 1021697 in February 2020.

As per the report, the maximum jobs were created in the age bracket of 22-25 and in this bracket the top sectors which have created more fresh jobs include Expert Services, Trading - Commercial Establishments, Establishments engaged in Manufacturing- Marketing Servicing & Usage of Computers, Electric-Mechanical-or General Engineering Products, Engineers- Engineering Contractors, Building & Construction Industry, Financing Establishment, Hospitals and Heavy - Fine Chemicals. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Karnataka, Gujarat, Tamil Nadu, Delhi and Telangana.

According to the data report, 4357 new jobs were created in less than 18 age group category, while 142739 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 168667, 75924, 97828 and 83409 new payrolls, respectively in March 2020.

The CNX Nifty is currently trading at 9159.00, up by 92.45 points or 1.02% after trading in a range of 9056.10 and 9173.85. There were 31 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.96%, ITC up by 4.95%, Hero MotoCorp up by 4.32%, Bajaj Auto up by 4.20% and Eicher Motors up by 3.27%. On the flip side, Shree Cement down by 2.49%, NTPC down by 2.21%, Adani Ports down by 1.76%, Larsen & Toubro down by 1.59% and Grasim Industries down by 1.40% were the top losers.

European markets were trading lower, UK’s FTSE 100 decreased 45.01 points or 0.74% to 6,022.15, France’s CAC decreased 50.72 points or 1.13% to 4,446.26 and Germany’s DAX was down by 134.21 points or 1.2% to 11,089.50.