Equity markets add gains in late afternoon session

Indian equity markets added gains in the late afternoon session on account of buying in front line counters. Traders remain energized as Moody's projected India's growth for the next financial year beginning April 1, to 13.7 percent, from 10.8 percent estimated earlier, on the back of normalisation of activity and growing confidence in the market with the rollout of COVID-19 vaccine. Meanwhile, Finance Minister Nirmala Sitharaman stated that the Centre has lifted the embargo on the grant of government businesses to private banks. This will enable banks to participate in all developmental activities. She said ‘Private Banks can now be equal partners in development of the Indian economy, furthering the government's social sector initiatives and enhancing customer convenience’. 

On the global front, all Asian markets were trading higher after U.S. Federal Reserve Chair Jerome Powell soothed nerves over rising U.S. bond yields and calmed inflation worries by reassuring markets for a second day that interest rates would be left unchanged for now. European markets were trading higher following Asian and U.S. stocks up, as hopes of an economic recovery and positive results fuel investors’ optimism.

The BSE Sensex is currently trading at 51212.92, up by 431.23 points or 0.85% after trading in a range of 51005.68 and 51386.12. 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 1.19%, while Small cap index was up by 1.32%.

The top gaining sectoral indices on the BSE were Energy up by 3.90%, Oil & Gas up by 3.79%, Metal up by 3.12%, PSU up by 3.08% and Utilities was up by 2.84%, while FMCG down by 0.22% was the only losing indices on BSE.

The top gainers on the Sensex were ONGC up by 5.23%, NTPC up by 4.16%, Reliance Industries up by 3.70%, Indusind Bank up by 3.56% and Power Grid was up by 3.37%. On the flip side, ICICI Bank down by 1.59%, Nestle down by 1.30%, Kotak Mahindra Bank down by 0.71%, Ultratech Cement down by 0.67% and Hindustan Unilever down by 0.60% were the top losers.

Meanwhile, expressing optimism, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the manufacturing sector and micro, small and medium enterprises (MSME) are spearheading economic growth in the country after the outbreak of Covid-19 while many contact-intensive services sub-sectors remain severely affected by the crisis.Shaktikanta Das further said the Production Linked Incentive (PLI) Scheme aims to make India an integral part of the global value chain. He also added that this along with reforms in labour market can go a long way in propelling growth to an elevated trajectory for the manufacturing sector and reap its employment potential.

Besides, he said that the sector was rendered especially vulnerable by the pandemic, necessitating concerted efforts to combat the stress and focus on revival of the sector. The government introduced two major schemes: the Emergency Credit Line Guarantee Scheme (ECLGS) and the Credit Guarantee Scheme for Subordinate Debt (CGSSD).

The CNX Nifty is currently trading at 15139.75, up by 157.75 points or 1.05% after trading in a range of 15065.35 and 15170.85. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Coal India up by 7.93%, Adani Ports up by 6.43%, UPL up by 5.79%, BPCL up by 5.46% and ONGC up by 5.28%. On the flip side, ICICI Bank down by 1.61%, Nestle down by 1.32%, Titan Company down by 0.77%, Larsen & Toubro down by 0.71% and Hindustan Unilever down by 0.66% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 496.57 points or 1.67% to 30,168.27, Hang Seng increased 355.93 points or 1.2% to 30,074.17, Taiwan Weighted strengthened 239.65 points or 1.48% to 16,452.18, KOSPI rose 104.71 points or 3.5% to 3,099.69, Straits Times advanced 50.02 points or 1.71% to 2,974.60, Jakarta Composite soared 38.60 points or 0.62% to 6,289.65 and Shanghai Composite was up by 20.97 points or 0.59% to 3,585.05.

European markets were trading higher, UK’s FTSE 100 increased 26.63 points or 0.4% to 6,685.60, France’s CAC increased 31.01 points or 0.53% to 5,828.99 and Germany’s DAX was up by 24.72 points or 0.18% to 14,000.72.