Markets trade higher in early deals

Indian equity benchmarks made optimistic start on Wednesday in-line with its global peers. Markets are trading higher with gains of over half a percent each in early deals. Buoying in FMCG, Consumer Durables and Consumer Discretionary stocks supported the domestic indices, while selling in Telecom, Healthcare and Power stocks kept upside in check. Sentiments got a boost as the Finance Ministry cited green shoots of recovery in agriculture, manufacturing and services sectors, and said the prompt policy measures taken by the government and RBI have helped reinvigorate the economy with minimal damage. Adding more optimism with Union Minister Nitin Gadkari’s statement that integrated approach to transportation system, diversification of agriculture into energy and power, and development of industrial clusters outside metro cities are the need of the hour to boost the Indian economy. Meanwhile, India has again seen a sharp spike in the number of coronavirus cases, with its total rising to 456,115. Around 14,483 people have died in the country from Covid-19 so far.

On the global front, most of the Asian markets are trading in green following the positive cues overnight from Wall Street on upbeat economic data and on hopes of more stimulus measures. Nevertheless, investors remained cautious due to a surge in the number of coronavirus cases in the US. Meanwhile, Japan will come out with final April figures for its leading and coincident indexes later in the day.

Back home, aviation stocks were trading higher with report that India may soon allow airlines from the US, France, UK, Germany among others to operate flights to and from India for approved categories of passengers. In scrip specific developments, Asian Paints gained despite reporting 2.1% fall in net profit year-on-year to Rs 461.9 crore in the quarter-ended March as the nationwide lockdown to contain the spread of coronavirus hit demand. Bank of Baroda jumped on reporting a net profit of Rs 507 crore for the three months to March, owing to lower provisions for bad assets.

The BSE Sensex is currently trading at 35652.30, up by 221.87 points or 0.63% after trading in a range of 35515.76 and 35681.92. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.77%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were FMCG up by 1.41%, Consumer Durables up by 1.39%, Consumer Discretionary up by 1.34%, Auto up by 1.07%, Metal up by 0.98%, while Telecom down by 0.23%, Healthcare down by 0.18%, Power down by 0.11%, TECK down by 0.00% were the few losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.07%, ITC up by 3.63%, Titan Company up by 1.90%, Bajaj Auto up by 1.89% and Bajaj Finance up by 1.72%. On the flip side, Power Grid down by 1.94%, HCL Technologies down by 1.26%, Indusind Bank down by 1.11%, Sun Pharma down by 0.77% and Infosys down by 0.42% were the top losers.

Meanwhile, the Finance Ministry has cited ‘green shoots’ of recovery in agriculture, manufacturing and services sectors, and said the government and the RBI have taken prompt policy measures - both short term and long term - in a calibrated manner to reinvigorate the economy at the earliest with minimal damage. Stating that agricultural sector remains the foundation of the Indian economy, it said that a normal monsoon, as has been forecast, should support the rebooting of economy. It added that the commitment of the government towards both structural reforms and supportive social welfare measures will help build on these 'green shoots'.

The Ministry has stated that though the GDP contribution of the sector may not be very large (in relation to industry and services), its growth has a very positive impact on the large population dependent on agriculture. Further, it said the recent landmark reforms announced in the sector will go a long way in building efficient value chains and ensuring better returns for farmers.

It also said that early green shoots of economic revival have also emerged in May and June with real activity indicators like electricity and fuel consumption, inter and intra-state movement of goods, retail financial transactions witnessing pick up. It added that India becoming the world's second largest manufacturer of personal protective equipment (PPE) within two months shows the resilience of the manufacturing sector.

The CNX Nifty is currently trading at 10530.50, up by 59.50 points or 0.57% after trading in a range of 10497.95 and 10542.75. There were 33 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 4.58%, ITC up by 3.95%, Hero MotoCorp up by 3.46%, Titan Company up by 2.32% and Bajaj Auto up by 2.13%. On the flip side, Power Grid down by 1.52%, Indusind Bank down by 1.49%, HCL Technologies down by 1.17%, Bharti Infratel down by 0.84% and UPL down by 0.71% were the top losers.

Asian markets are trading mostly higher; Straits Times rose 3.26 points or 0.12% to 2,638.18, Taiwan Weighted advanced 33.82 points or 0.29% to 11,646.18, KOSPI soared by 32.46 points or 1.52% to 2,163.70, Jakarta Composite jumped 64.76 points or 1.33 % to 4,943.89 and Shanghai Composite up by 4.55 points or 0.15 % to 2,975.17. On the other hand, Nikkei 225 lost 16.67 points or 0.07% to 22,532.38 and Hang Seng was down by 13.71 points or 0.06% to 24,893.63.