Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in late afternoon deals and continued their trade with positive bias, following gains in Power, Metal, and PSU stocks. Healthy buying was observed in blue-chip stocks like Bajaj Finance, Power Grid Corporation and ITC. In line with the larger peers, the broader indices were too holding gaining momentum. Sentiments remain upbeat with Federation of Indian Export Organisations (FIEO) President S K Saraf’s statement that the ongoing India-China border tensions may not have any immediate impact on the bilateral trade relations. However, upside remain capped with the Asian Development Bank statement that countries in Developing Asia will ‘barely grow’ in 2020, while India's economy is forecast to contract by 4 per cent this fiscal due to the adverse effect of the coronavirus pandemic. Meanwhile, investments through participatory notes (P-notes) in the domestic capital market rose to Rs 60,027 crore till May-end, making it the second consecutive monthly increase.

On the global front, Asian markets were trading mixed amid waning cues for a quick global economic recovery amid the reports on spiking coronavirus cases in Beijing and in several US states. Back on street, in scrip specific developments, Manappuram Finance moved up on getting nod to raise Rs 350 crore through NCDs and  Clariant Chemicals gained on reporting 5.4% growth in sales for FY20.

The BSE Sensex is currently trading at 33749.35, up by 241.43 points or 0.72% after trading in a range of 33371.52 and 33778.82. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.58%, while Small cap index was up by 1.24%.

The top gaining sectoral indices on the BSE were Power up by 2.46%, Metal up by 2.36%, PSU up by 1.88%, Utilities up by 1.51% and Telecom was up by 1.13%, while Auto down by 0.27% and Healthcare was down by 0.01% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.64%, Power Grid Corporation up by 3.35%, ITC up by 2.79%, Tata Steel up by 2.19% and HDFC was up by 2.03%. On the flip side, Maruti Suzuki down by 1.14%, ONGC down by 0.95%, Nestle down by 0.70%, Hindustan Unilever down by 0.55% and Hero MotoCorp was down by 0.41% were the top losers.

Meanwhile, Automotive Tyre Manufacturers Association (ATMA) has said that restrictions on import of tyres will pave the way for increased domestic production and export besides unlocking job creation potential. Recently, the government had imposed curbs on imports of certain new pneumatic tyres used in motor cars, busses, lorries and motorcycles in a move to promote domestic manufacturing.

It said the move has come as a sentiment booster for the industry that has been bearing the brunt of the slowdown in the auto sector and disruption caused by COVID-19 pandemic. Stating that indiscriminate import of tyres has been the bane of the tyre industry in India, it said most of the imports are from China which accounts for over 40 percent of Truck and Bus Radial (TBR) tyres and passenger car radial (PCR) tyres shipments to India from overseas. In case of tractor tyres, Chinese import is three-fourths of total import.

ATMA further stated that emboldened by the development, the tyre industry in India is looking at better than expected domestic production and increased exports from the country. It also said that domestic manufacturing capacity is ahead of the demand curve and India is self-sufficient in manufacturing practically all kinds of tyres including tyres for critical applications like fighter jets. It added that most of the imports are unwarranted and have been hurting capacity utilisation in domestic manufacturing.

The CNX Nifty is currently trading at 9969.25, up by 88.10 points or 0.89% after trading in a range of 9845.05 and 9974.10. There were 36 stocks advancing against 13 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Coal India up by 5.99%, Zee Entertainment up by 4.67%, Bajaj Finserv up by 3.93%, Bajaj Finance up by 3.84% and Power Grid Corporation was up by 3.32%. On the flip side, Maruti Suzuki down by 1.08%, ONGC down by 0.83%, Nestle down by 0.69%, Shree Cement down by 0.65% and Adani Ports & SEZ was down by 0.63% were the top losers.

Asian markets were trading mixed; Taiwan Weighted strengthened 13.74 points or 0.12% to 11,548.33, Straits Times advanced 1.34 points or 0.05% to 2,670.96, Shanghai Composite gained 3.27 points or 0.11% to 2,939.14 and Jakarta Composite was up by 3.51 points or 0.07% to 4,991.29.

On the other hand; KOSPI fell 7.57 points or 0.35% to 2,133.48, Hang Seng decreased 57.62 points or 0.24% to 24,423.79 and Nikkei 225 was down by 100.30 points or 0.45% to 22,355.46.