Post Session: Quick Review

Indian equity benchmarks ended with notable gains on Wednesday’s trading session. Indian equity benchmarks made a gap-up opening as the Organization for Economic Co-operation and Development (OECD) raised the projection for India’s economic growth rate by 4.7 percentage points at 12.6 per cent for 2021-22. That would enable India to retain its earlier tag of the fastest growing large economy in the world. Adding more optimism among traders, CRISIL projected India’s economy to grow by 11 per cent in the next fiscal year against expected contraction of 8 per cent in 2020-21.

In late morning deals, markets cut most of their gains, amid reports that a majority of CFOs interviewed see the long-term and financial impact of the global pandemic as one of their top challenges over the next three years. According to a survey, the most pressing issue at hand for CFOs (chief financial officers) is long-term business and financial impact of global pandemic, with almost 80 per cent of respondents listing this as their top challenge over the next three years. Besides, India reported 16,846 fresh Covid-19 cases on Wednesday pushing the overall tally to 11,261,470, according to Worldometer. The death toll from the deadly infection jumped to 158,079.

However, in the second half of the session, indices regained momentum to end on a higher note. Sentiments were positive, as CRISIL in its report stated that the production-linked incentive (PLI) scheme that seeks to push domestic manufacturing in as many as 14 sectors has the potential to generate additional revenue worth Rs 35-40 lakh crore over the next five years. Some support also came with private report stated that India's economy should come roaring back to life in 2021 after a recession induced by COVID-19 and allow the country to reclaim its status as the fastest-growing major economy if the OECD projection of 12.6 per cent expansion in GDP is realised.

On the global front, European markets were trading mostly in green even after rising inflation. Asian markets ended mostly higher on Wednesday, as consumer prices in China were down 0.2 percent on year in February. The National Bureau of Statistics said that exceeded expectations for a decline of 0.4 percent and was up from -0.3 percent in the previous month. On a monthly basis, consumer prices climbed 0.6 percent - again beating forecasts for a gain of 0.4 percent but down from 1.0 percent a month earlier.

The BSE Sensex ended at 51279.51, up by 254.03 points or 0.50% after trading in a range of 51048.93 and 51430.43. There were 22 stocks advancing against 7 stocks declining, while 1 stock remained unchanged on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.77%, while Small cap index was up by 0.95%.(Provisional)

The top gaining sectoral indices on the BSE were Metal up by 1.82%, IT up by 1.58%, TECK up by 1.40%, Healthcare up by 1.23% and Basic Materials up by 1.15%, while Oil & Gas down by 0.93%, Utilities down by 0.58%, Energy down by 0.40%, Power down by 0.22% and PSU down by 0.08% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finance up by 2.34%, Sun Pharma up by 2.18%, Tech Mahindra up by 2.06%, Axis Bank up by 2.02% and Bajaj Auto up by 1.80%. On the flip side, ONGC down by 2.05%, Kotak Mahindra Bank down by 0.89%, ITC down by 0.63%, HDFC Bank down by 0.44% and Power Grid down by 0.39% were the top losers. (Provisional)

Meanwhile, automobile dealers' body the Federation of Automobile Dealers Associations (FADA) in its latest report has said that passenger vehicle (PV) retail sales witnessed an increase of 10.59 per cent to 2,54,058 units in February 2021 as against 2,29,734 units in February 2020.

As per the report, two-wheeler sales however declined 16.08 per cent to 10,91,288 units last month, as compared to 13,00,364 units in February 2020. Commercial vehicle sales also slipped 29.53 per cent to 59,020 units, as against 83,751 units a year ago.

The FADA further noted that three-wheeler sales fell 49.65 per cent to 33,319 units last month, from 66,177 units in the year-ago period. Tractor sales, however, grew by 18.89 per cent to 61,351 units last month, against 51,602 units in the same month last year.

The CNX Nifty ended at 15174.80, up by 76.40 points or 0.51% after trading in a range of 15100.85 and 15218.45. There were 34 stocks advancing against 16 stocks declining on the index. (Provisional)

The top gainers on Nifty were JSW Steel up by 3.09%, Eicher Motors up by 3.07%, Tata Steel up by 2.51%, Bajaj Finance up by 2.40% and Sun Pharma up by 2.19%. On the flip side, SBI Life Insurance down by 3.15%, ONGC down by 2.01%, Indian Oil Corporation down by 1.69%, HDFC Life Insurance down by 1.20% and GAIL India down by 0.91% were the top losers. (Provisional)

European markets were trading mostly in green, France’s CAC increased 9.53 points or 0.16% to 5,934.50 and Germany’s DAX was up by 12.16 points or 0.08% to 14,450.10. On the flip side, UK’s FTSE 100 was down by 35.99 points or 0.53% to 6,694.35.

Asian markets ended mostly higher on Wednesday tracking positive cues from Wall Street overnight. While, fall in US bond yields also eased concerns about surging inflation, supporting market sentiments. However, Seoul shares declined as foreigners and institutions locked in profits. Chinese shares ended almost flat as investors reacted to mixed inflation data and signs of policy tightening. Consumer prices in China were down 0.2% year-on-year in February, which exceeded expectations for a decline of 0.4% and was up from -0.3% in the previous month. The producer prices were up an annual 1.7%, exceeding expectations for an increase of 1.5% and up sharply from 0.3% in January. Japanese shares ended with a flat note amid profit booking before the year-end selloff by funds.