Equity markets maintain healthy gains in late afternoon session

Indian equity markets maintained their healthy gains in the late afternoon session, following gains in Healthcare, Utilities and Power stocks amid positive global sentiment. Sentiments remained upbeat after the growth of India’s service sector extended into the new year, with growth of new work and business activity quickening since December. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index surged to 52.8 in January from 52.3 in December. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also jumped to 55.8 in January from 54.9 in December. Some support also came with NITI Aayog Vice-Chairman Rajiv Kumar’s statement that the reform measures announced in the budget 2021-22 are aimed at taking India out of the COVID-19-induced downturn and making the country a better destination for private investment, both for domestic and foreign investors.

On the global front, Asian markets were trading mostly in green boosted by US stimulus hopes and signs of easing virus infections as well as improvements in vaccination programmes. European markets were trading higher as focus remained on a busy day of earnings, with positive sentiment spilling over from Asian markets on hopes of a faster global economic recovery.

The BSE Sensex is currently trading at 50472.73, up by 675.01 points or 1.36% after trading in a range of 49515.88 and 50526.39. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.61%, while Small cap index was up by 1.55%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.84%, Utilities up by 2.72%, Power up by 2.70%, Metal up by 2.34% and Telecom was up by 2.22%, while Realty down by 0.09% were the only losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 9.02%, Power Grid up by 7.49%, Sun Pharma up by 5.04%, Dr. Reddys Lab up by 3.76% and Mahindra & Mahindra up by 3.23%. On the flip side, Maruti Suzuki down by 0.56%, Kotak Mahindra Bank down by 0.53%, Nestle down by 0.26%, SBI down by 0.17% and Ultratech Cement down by 0.06% were the top losers.

Meanwhile, growth of India’s service sector extended into the new year, with growth of new work and business activity quickening since December. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index surged to 52.8 in January from 52.3 in December. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also jumped to 55.8 in January from 54.9 in December.

The report said that new business rose in January, marking a four-month period of expansion. The pace of growth was moderate, but accelerated from December. Further, marketing efforts, the reopening of some establishments and strengthening demand all supported the increase in sales. However, employment declined further, while exports contracted sharply.

On the price front, there was a slower rise in input costs and prices charged for the provision of services decreased again. Looking ahead, service providers were confident of a rise in output in the coming 12 months. Positive sentiment was supported by beliefs that the roll-out of COVID-19 vaccines would underpin demand growth and improvements in the wider economy. The overall degree of optimism was at an 11-month high.

The CNX Nifty is currently trading at 14858.95, up by 211.10 points or 1.44% after trading in a range of 14574.15 and 14868.85. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 8.90%, Power Grid up by 7.75%, Tata Motors up by 4.94%, Sun Pharma up by 4.90% and Coal India up by 4.19%. On the flip side, Shree Cement down by 1.88%, Nestle down by 0.33%, Kotak Mahindra Bank down by 0.28%, Ultratech Cement down by 0.18% and Maruti Suzuki down by 0.13% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 284.33 points or 1% to 28,646.50, Hang Seng increased 58.76 points or 0.2% to 29,307.46, Jakarta Composite soared 33.90 points or 0.56% to 6,077.74, KOSPI rose 32.87 points or 1.06% to 3,129.68, Straits Times advanced 16.33 points or 0.56% to 2,933.62 and Taiwan Weighted was up by 11.27 points or 0.07% to 15,771.32. On the flip side, Shanghai Composite was down by 16.37 points or 0.46% to 3,517.31.

European markets were trading higher; UK’s FTSE 100 increased 38.22 points or 0.59% to 6,554.87, France’s CAC increased 35.44 points or 0.64% to 5,598.55 and Germany’s DAX was up by 101.55 points or 0.73% to 13,936.71.