Markets trade in fine-fettle in early deals; Sensex surpasses 52K mark

Indian equity benchmarks made gap-up opening on Monday tracking firm trend in global peers. Markets are trading in fine-fettle with gains of around a percent each in early deals. Buying in Bankex, Telecom and Realty aided the sentiments. Positive macro-economic data supported markets. The Index of Industrial Production (IIP) grew by 1 per cent in December on a year-on-year (Y-o-Y) basis compared with a 2 per cent decline in the previous month, the data released by the National Statistical Office showed. On the other hand, the consumer price index (CPI)-based inflation rate fell for the third consecutive month to 4.06 per cent in January as food inflation, pulled down by deflation in vegetables, drastically declined. Some support came in as PHDCCI said expectations that the country's GDP would record growth in the third and fourth quarters of 2020-21 are getting stronger on account of various reforms undertaken by the government in the last ten months. Adding more optimism, Chief Economic AdviserK V Subramanian said the reform measures announced in the Budget 2021-22 will play a big role in India becoming a $5 trillion economy and beyond.

Positive global cues also supported domestic markets, with Asian markets trading in green following the record closing highs on Wall Street Friday and as a slowdown in the rate of coronavirus infections as well as the accelerated coronavirus vaccine rollouts worldwide boosted optimism about the global economic recovery. The markets in China, Taiwan and Hong Kong remain closed for the Lunar New Year holidays. Back home, insurance industry stocks were in limelight with report that the Finance Ministry will infuse Rs 3,000 crore capital into state-owned general insurance companies during the current quarter in a bid to improve their financial health. In scrip specific development, Indian Railway Finance Corporation advanced as it reported a 15 percent increase in net profit for the third quarter ended December 31.

The BSE Sensex is currently trading at 52028.45, up by 484.15 points or 0.94% after trading in a range of 51886.46 and 52110.74. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.60%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Bankex up by 1.69%, Telecom up by 1.26%, Realty up by 0.78%, TECK up by 0.59%, IT up by 0.52%, while Oil & Gas down by 0.50%, Consumer Durables down by 0.39%, Metal down by 0.24%, Energy down by 0.14%, Utilities down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.49%, Indusind Bank up by 2.48%, HDFC up by 2.13%, HDFC Bank up by 1.73% and ICICI Bank up by 1.58%. On the flip side, NTPC down by 0.78%, ONGC down by 0.77%, Tech Mahindra down by 0.60%, Mahindra & Mahindra down by 0.39% and Dr. Reddy’s Lab down by 0.37% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said that the government, undeterred by the COVID-19 pandemic, has been pursuing reforms for achieving sustained long-term growth in a bid to make India one of the top economies of the world in the coming decades. She also said that the Prime Minister did not lose any opportunity to continue with the reforms and this Budget has set the pace for India to become self-reliant or Aatmanirbhar.

The minister has stated that her Budget for 2021-22, has provided the highest capex growth of 34.4 percent by providing more money to railways, roads and defence. Referring to a series of measures taken to stimulate the economy hit by the pandemic, she said COVID-19 did not deter the government from taking up reforms, which are going to be necessary for sustaining long-term goals for this country.

On handling of COVID-19 pandemic, Sitharaman said ‘the death rates are the lowest in the world, active cases have come down... we have actually managed to bend the curve. And as a result, the revival of the economy looks a lot more sustainable and this Budget gives necessary impetus.’ 

The CNX Nifty is currently trading at 15287.70, up by 124.40 points or 0.82% after trading in a range of 15243.40 and 15314.30. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 2.57%, Axis Bank up by 2.44%, HDFC up by 2.10%, HDFC Bank up by 1.77% and Bharti Airtel up by 1.76%. On the flip side, Hero MotoCorp down by 1.23%, ONGC down by 0.82%, IOC down by 0.74%, NTPC down by 0.73% and GAIL India down by 0.71% were the top losers.

Asian markets were trading higher; NIKKEI 225 surged 453.75 points or 1.54% to 29,973.82, Straits Times rose 11.04 points or 0.38% to 2,936.52, KOSPI jumped 45.75 points or 1.48% to 3,146.33 and Jakarta Composite was up by 42.94 points or 0.69% to 6,265.46.