Benchmarks trim gains in late afternoon session

The Indian equity benchmarks trimmed some of their gains in late afternoon session but continued trade in green territory. Traders took support after PHD Chamber of Commerce and Industry (PHDCCI) said expectations that the country's GDP would record growth in the third and fourth quarters of 2020-21 (Q3, Q4 of FY21) are getting stronger on account of various reforms undertaken by the government in the last ten months. It said out of the 10 indicators of QET (Quick Economic Trends) of economic and business activity tracked by PHDCCI, nine have performed positive. However, upside remained capped after RBI data showed that country’s foreign exchange reserves declined by a massive $6.24 billion to reach $583.945 billion in the week ended February 5. On the global front, all Asian markets were trading higher after Wall Street's main indexes set record highs on Friday amid signs of a slowdown in the rate of coronavirus infections and the progress being made with vaccines. European markets were trading higher, boosted by optimism of an economic recovery as the region’s vaccination program increases in pace.

The BSE Sensex is currently trading at 52022.81, up by 478.51 points or 0.93% after trading in a range of 51886.46 and 52177.50. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.38%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Bankex up by 2.52%, Realty up by 2.09%, Telecom up by 1.24%, PSU up by 0.99% and Power was up by 0.94%, while IT down by 0.57%, Energy down by 0.32%, Consumer Durables down by 0.31%, TECK down by 0.31% and Oil & Gas was down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 3.95%, Bajaj Finance up by 3.62%, ICICI Bank up by 3.32%, SBI up by 3.10% and Bajaj Finserv up by 2.37%. On the flip side, TCS down by 1.70%, Dr. Reddys Lab down by 1.67%, Asian Paints down by 0.99%, Hindustan Unilever down by 0.97% and Tech Mahindra down by 0.96% were the top losers.

Meanwhile, passenger vehicle shipments from India rose in January for the first time post COVID-19 pandemic, pointing towards demand recovery in some of the major export markets for Indian automakers. According to the Society of Indian Automobile Manufacturers (SIAM) data, passenger vehicle exports rose by 1.15 percent to 37,187 units in January compared to 36,765 units in January 2020. In April-January, passenger vehicle shipments were still down by 43.1 percent at 3,28,360 units as against 5,77,036 units in the same period of 2019-20 financial year. 

While exports of passenger vehicles for the April-January 2021 period is down by 43.1 percent, the growth of 1.15 percent in January 2021 over the previous year, makes it the first month of growth in passenger vehicle exports, post the pandemic. Economic recovery in the export markets will be critical for revival of exports and continuity in growth momentum.  

In the domestic market, passenger vehicle wholesales increased by 11.14 percent to 2,76,554 units last month as compared with 2,48,840 units in January 2020. In the April-January period, the segment sales stood at 20,54,428 units, down 13.2 percent from 20,54,428 units in the same period of the 2019-20 fiscal.

The CNX Nifty is currently trading at 15284.50, up by 121.20 points or 0.80% after trading in a range of 15243.40 and 15326.60. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.04%, Bajaj Finance up by 3.53%, ICICI Bank up by 3.44%, SBI up by 3.37% and Adani Ports up by 2.80%. On the flip side, SBI Life down by 2.15%, HDFC Life Insurance down by 1.99%, TCS down by 1.62%, Dr. Reddys Lab down by 1.53% and Asian Paints down by 1.38% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 564.08 points or 1.91% to 30,084.15, KOSPI rose 46.42 points or 1.5% to 3,147.00 and Straits Times was up by 7.77 points or 0.27% to 2,933.25.

European markets were trading higher, UK’s FTSE 100 increased 64.69 points or 0.98% to 6,654.48, France’s CAC increased 43.07 points or 0.76% to 5,746.74 and Germany’s DAX was up by 41.57 points or 0.3% to 14,091.46.