Markets trade with notable gains in early deals; Nifty reclaims 15K mark

03 Mar 2021 Evaluate

Indian equity benchmarks made positive start on Wednesday, continuing their gaining momentum for third straight session, tracking gains in Asian peers. Markets are trading higher with gains of over half a percent each in early deals amid assurances from the government that it had enough COVID-19 vaccine doses to cover its population. The government said there were plenty of COVID-19 vaccines for the country even though it has sent quantities abroad. Sentiments got a boost as principal economic advisor to the finance ministry Sanjeev Sanyal said Indian economy is recovering faster than expected and the government will spend on building infrastructure rather than boosting consumer demand artificially. though, upside remained capped with provisional data released by the commerce ministry showing that India's exports marginally declined 0.25 per cent to $27.67 billion in February, while imports grew by 6.98 per cent to $40.55 billion during the month. Meanwhile, India’s tally of coronavirus cases has risen to 11,139,323, with a daily increase of 15,704 in total cases. Death toll has reached 157,385, with 110 fatalities in a day.

On the global front, all the Asian markets were trading higher despite the lackluster cues overnight from Wall Street. The markets continue to be optimism about higher fiscal stimulus and the global economic recovery as US bond yields moved lower for the third straight session and lower crude oil prices. Back home, Tyre companies stocks were in focus as the government decided not to impose anti-dumping duty on truck and bus radial tyres imported from Thailand. In scrip specific development, Reliance Industries rose after Jio Infocomm reportedly emerged the top bidder in India's $11 billion airwaves auction. On the other hand, Ircon International plunged amid report that the government is selling up to 16 percent stake in the company at a floor price of Rs 88 per share.

The BSE Sensex is currently trading at 50552.98, up by 256.09 points or 0.51% after trading in a range of 50545.17 and 50776.48. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.03%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Metal up by 3.57%, Basic Materials up by 1.95%, Utilities up by 1.88%, Power up by 1.49%, Realty up by 1.49%, while Auto down by 0.15% was the losing index on BSE.

The top gainers on the Sensex were HDFC up by 1.57%, Axis Bank up by 1.30%, Ultratech Cement up by 1.24%, SBI up by 1.21% and ONGC up by 1.01%. On the flip side, Bajaj Auto down by 1.46%, Maruti Suzuki down by 1.32%, Asian Paints down by 0.37%, Tech Mahindra down by 0.35% and HCL Technologies down by 0.35% were the top losers.

Meanwhile, Principal economic advisor to the finance ministry Sanjeev Sanyal has said that Indian economy is recovering much faster than expected and the government will spend on building infrastructure rather than boosting consumer demand artificially. He also said the country needs to keep the growth momentum and it is the only means to create employment and reduce poverty.

Sanyal has stated that the nominal GDP growth rate in the Union Budget for 2021-22 was projected at around 14 percent, which is a ‘conservative estimate’. He noted that the government is unapologetic about the privatisation of some public sector entities. He said PSUs will exist where it is needed but not where the private sector can do a better job. He also said that there is a need to unleash the spirit of the private sector. He added ‘we will get rid of regulations but will support sectors which needed by extending the PLI (production linked incentive) schemes.’

The data released by the National Statistical Office (NSO) showed after contracting for two quarters in a row, the country's economy grew by 0.4 per cent in the October-December quarter of the current fiscal amid the coronavirus pandemic. The gross domestic product (GDP) had expanded by 3.3 percent in the corresponding period of 2019-20. The economy had shrunk by an unprecedented 24.4 per cent in the first quarter this fiscal following the coronavirus pandemic and resultant lockdowns.

The CNX Nifty is currently trading at 15004.45, up by 85.35 points or 0.57% after trading in a range of 15004.45 and 15064.80. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 5.19%, JSW Steel up by 4.94%, Hindalco up by 3.20%, Tata Motors up by 2.27% and Adani Ports & SEZ up by 2.21%. On the flip side, Hero MotoCorp down by 1.54%, Maruti Suzuki down by 1.51%, Bajaj Auto down by 1.37%, Eicher Motors down by 0.36% and Asian Paints down by 0.33% were the top losers.

Asian markets were trading in green; Nikkei 225 rose 66.11 points or 0.22% to 29,474.28, Straits Times gained 14.91 points or 0.50% to 2,988.78, Hang Seng surged 498.15 points or 1.71% to 29,594.01, Taiwan Weighted jumped 133.86 points or 0.84% to 16,080.74, KOSPI advanced 24.98 points or 0.82% to 3,068.85, Jakarta Composite added 14.78 points or 0.23% to 6,373.99, and Shanghai Composite was up by 46.69 points or 1.33% to 3,555.28.

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