Post Session: Quick Review

Indian equity benchmarks ended higher on Thursday. The start of the day was on a strong note, as the Central government has lifted the embargo placed granting businesses to private banks, which is expected to enhance customer convenience, spur competition and higher efficiency in standards of customer services. In a statement, the Department of Financial Services (DFS) said that 'The Government has lifted the embargo on private banks (only a few were permitted earlier) for the conduct of Government-related banking transactions such as taxes and other revenue payment facilities, pension payments, small savings schemes, etc.'

Indices remained higher for the whole trading day, after the Reserve Bank of India (RBI) announced yet another round of Open Market Operations (OMO) or simultaneous purchase and sale of gilts on March 4. Under this, the RBI will buy Rs 15,000 crore worth bonds in four different papers and sell Rs 150,000 crore worth bonds in two different securities. Traders remained positive, 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.

In the last hour of the trading session, markets cut some of their gains but managed to end higher. Sentiments remained up-beat with S&P Global Ratings’ statement that an improvement in macroeconomic conditions is likely to alleviate stress for India's banking sector. It said the Indian government's strong efforts to shield banks from the COVID-19 pandemic have largely been successful, but a hit from the pandemic is inevitable. Traders took a note of private report stated that the number of ultra-high networth individuals (UHNWIs), with wealth of $30 million or more, is expected to rise 63 percent over the next five years to 11,198 in India, the second fastest growth in the world.

On the global front, European markets were trading higher following Asian and U.S. stocks up, as hopes of an economic recovery and positive results fuel investors’ optimism. Asian markets ended higher on Thursday, even after Malaysia's producer prices declined at a softer rate in January. The figures from the Department of Statistics showed that the producer price index fell 0.1 percent year-on-year in January, following a 2.1 percent decrease in December. Among sectors, prices of mining declined the most by 28.3 percent annually in January and prices for electricity and gas supply fell 1.9 percent. Meanwhile, prices for agriculture, forestry and fishing grew 22.6 percent. Prices for water supply and manufacturing increased by 0.5 percent and 1.1 percent, respectively.

The BSE Sensex ended at 51039.31, up by 257.62 points or 0.51% after trading in a range of 50991.76 and 51386.12. There were 18 stocks advancing against 12 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.09%, while Small cap index was up by 1.42%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 3.92%, Oil & Gas up by 3.52%, Metal up by 3.38%, PSU up by 2.81% and Utilities up by 2.53%, while FMCG down by 0.24% and Capital Goods down by 0.01% were the only losing indices on BSE. (Provisional)

The top gainers on the Sensex were ONGC up by 4.66%, NTPC up by 4.55%, Reliance Industries up by 3.84%, Indusind Bank up by 3.70% and Axis Bank up by 2.94%. On the flip side, ICICI Bank down by 2.10%, Nestle down by 1.45%, Larsen & Toubro down by 1.20%, Kotak Mahindra Bank down by 0.98% and Titan Co down by 0.80% were the top losers. (Provisional)

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 ended at 15097.35, up by 115.35 points or 0.77% after trading in a range of 15065.35 and 15176.50. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Coal India up by 8.10%, UPL up by 7.05%, Adani Ports & SEZ up by 5.88%, Hindalco up by 5.38% and BPCL up by 5.21%. On the flip side, ICICI Bank down by 2.04%, Nestle down by 1.42%, Larsen & Toubro down by 1.32%, Titan Co down by 1.20% and Divis Lab down by 1.15% were the top losers. (Provisional)

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.

Asian markets ended higher on Thursday as dovish comments by US Federal Reserve chairman Jerome Powell calmed worries around inflation and interest rates. Jerome Powell told lawmakers it might take more than three years to reach the central bank's inflation goals, a sign the Fed plans leave interest rates flat for a long time to come. Further, progress in the roll-out of corona virus vaccines after news that Johnson & Johnson’s one-shot corona virus vaccine appeared safe and effective in trials and paving the way for emergency authorization in the US also boosted market sentiments. Japanese shares settled higher on economic optimism after the Japanese government is considering lifting a state of emergency in five prefectures in central and western parts of the country. Moreover, South Korean shares ended up as foreign and institutional investors turned into net buyers following Wall Street rally overnight, while the Bank of Korea kept its benchmark lending rate flat at a historic low of 0.5% as expected and indicated it would maintain a most accommodative stance in the face of the corona virus pandemic.