Markets hold upside trend in late afternoon session

Indian equity markets maintained their upside trend in late afternoon session following strong European markets cues. Power Grid, HDFC and Maruti Suzuki were the prime gainers among heavy-weights. Traders remained optimistic after Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 318789 new jobs in the month of May 2020 as against revised figure of 100825 in April 2020. Some additional support came with the preliminary data from early stages of human trials showing that the COVID-19 vaccine candidate being developed by the Oxford University and AstraZeneca is safe, well-tolerated, and immunogenic (capable of inducing an immune response). Sector wise, cement sector remained in focus, as ratings agency Icra has said cement demand may de-grow by up to 25 percent in current financial year (FY21) on account of the coronavirus lockdown and subsequent specific restrictions disrupting construction activities. It further said cement manufactures may witness a compression in operating profitability by 150-200 basis points (bps) in FY21.

On the global front, European markets were trading higher after European Union leaders agreed on a 750 billion-euro ($860 billion) stimulus package designed to aid the region’s economic recovery.

The BSE Sensex is currently trading at 37899.27, up by 480.28 points or 1.28% after trading in a range of 37742.05 and 37979.03. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index gained 0.07%, while Small cap index was up by 0.30%.

The top gaining sectoral indices on the BSE were Energy up by 2.57%, Realty up by 2.49%, PSU up by 2.40%, Oil & Gas up by 2.38% and Bankex was up by 2.02%, while Telecom down by 1.40%, Healthcare down by 0.61%, FMCG down by 0.59%, Metal down by 0.29% and TECK was down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 5.59%, HDFC up by 4.93%, Maruti Suzuki up by 4.02%, ICICI Bank up by 3.40% and ONGC up by 2.80%. On the flip side, Bajaj Finance down by 3.73%, Bajaj Finserv down by 2.99%, Sun Pharma down by 1.62%, Bharti Airtel down by 1.00% and Asian Paints down by 0.97% 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 318789 new jobs in the month of May 2020 as against revised figure of 100825 in April 2020.

As per the report, the maximum jobs were created in the age bracket of 29-35 and in this bracket the top sectors which have created more fresh jobs include Expert Services, Building & Construction Industry, Engineers- Engineering Contractors, Trading - Commercial Establishments, Establishments Engaged in Cleaning & Sweeping Services, School, Electric-Mechanical-or General Engineering Products, Textiles and University, College, School etc. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Gujarat, Tamil Nadu, Telangana, Karnataka and Delhi.

According to the data report, 3072 new jobs were created in less than 18 age group category, while 66391 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 66248, 40984, 71723 and 70371 new payrolls, respectively in May 2020.

The CNX Nifty is currently trading at 11164.50, up by 142.30 points or 1.29% after trading in a range of 11113.25 and 11179.55. There were 32 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Indian Oil up by 6.68%, HDFC up by 5.15%, Power Grid up by 5.02%, Maruti Suzuki up by 4.34% and BPCL up by 4.29%. On the flip side, Bajaj Finance down by 3.17%, Bajaj Finserv down by 2.74%, Britannia down by 2.10%, Bharti Infratel down by 1.85% and Sun Pharma down by 1.73% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 49.06 points or 0.78% to 6,310.58, France’s CAC increased 65.28 points or 1.28% to 5,158.46 and Germany’s DAX was up by 250.44 points or 1.92% to 13,297.36.