Markets trade higher in early deals; Sensex reclaims 50,500 mark

Indian equity benchmarks opened higher on Tuesday, after a fall in previous session, tracking firm global cues. Markets are trading higher in early deals with marginal gains on the back of buying in Telecom, IT and TECK stocks. In line with benchmark indices, the broader markets -- MidCap and SmallCap -- also trading higher with notable gains. Sentiments got some support with the government data showing that the country's exports rose marginally by 0.67 per cent year-on-year to $27.93 billion in February, growing for the third consecutive month, even as trade deficit widened to $12.62 billion. Imports rose by 6.96 per cent to $40.54 billion in the month. Though, upside remained capped as India reported 24,366 fresh Covid-19 cases on Monday pushing the overall tally to 11,409,524, according to Worldometer. The death toll from the deadly infection jumped to 158,892. Meanwhile, a report stated that Cinema halls, hotels, restaurants and offices except those related to health and essential services in Maharashtra will function at 50 percent capacity till March 31.

All the Asian markets were trading higher following positive cues overnight from Wall Street. Investors continued to buy cyclical stocks as prospects of a stimulus-driven global economic recovery gets brighter. However, rising interest rates continue to be a concern for traders after a jump in bond yields. Back home, aviation industry stocks were in focus with ICRA’s report that the domestic airport sector is expected to incur a net loss of Rs 5,400 crore, and cash loss of Rs 3,500 crore in FY21, impacted by a 66 per cent year-on-year slip in passenger traffic amid COVID-19 induced travel restrictions. In scrip specific development, Max Healthcare Institute gained as it acquired an additional 42.8 percent stake of Saket City Hospitals for $64 million.

The BSE Sensex is currently trading at 50508.04, up by 112.96 points or 0.22% after trading in a range of 50477.03 and 50698.60. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.23%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Telecom up by 1.14%, IT up by 0.74%, TECK up by 0.72%, Consumer discretionary up by 0.63%, Consumer Durables up by 0.62%, while Metal down by 1.26%, Realty down by 0.39%, Bankex down by 0.27%, PSU down by 0.20%, Energy down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.51%, Titan Company up by 2.24%, Ultratech Cement up by 2.07%, Bharti Airtel up by 1.41% and Dr. Reddy’s Lab up by 1.03%. On the flip side, SBI down by 0.50%, NTPC down by 0.41%, Bajaj Auto down by 0.36%, Axis Bank down by 0.24% and Reliance Industries down by 0.00% were the top losers.

Meanwhile, credit rating agency ICRA in its latest report has said that the states may face a shortfall of Rs 2.7-3 lakh crore as Goods and Services Tax (GST) compensation from the Centre next fiscal. Out of that amount, the shortfall from cess collections will be at Rs 1.6-2 lakh crore. In FY21, the states were facing a shortfall of Rs 1.1 lakh crore in GST compensation from the Centre but over 90 per cent of that amount has been cleared now.

According to the report, the shortfall will force states to borrow at least Rs 2.2 lakh crore more from the market, which means that they will have to utilise as much as 90 per cent of their enhanced borrowing limits in FY22.  It has estimated the states' projected revenues at Rs 8.7 lakh crore next fiscal, which is 14 per cent higher than Rs 7.7 lakh crore in FY21.

The agency said the numbers are based on an estimate by the agency for all the 31 states and the Union Territories on a base case scenario of 23 per cent growth in GST collection by the states, which is in line with the Central estimate as well. Based on this, it expects the SGST collections by all the 31 states and UTs at Rs 5.7 lakh crore in FY22. The gap between the estimated projected revenue and SGST collections is pegged at Rs 3 lakh crore.

The CNX Nifty is currently trading at 14957.60, up by 28.10 points or 0.19% after trading in a range of 14946.50 and 15016.15. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 2.43%, UPL up by 2.09%, Titan Company up by 2.06%, Ultratech Cement up by 1.84% and Bharti Airtel up by 1.12%. On the flip side, Hindalco down by 2.10%, Tata Steel down by 1.41%, JSW Steel down by 1.23%, SBI down by 0.89% and Cipla down by 0.68% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 167.04 points or 0.56% to 29,934.01, Straits Times gained 0.44 points or 0.01% to 3,106.44, Hang Seng jumped 179.26 points or 0.62% to 29,013.02, Taiwan Weighted added 61.95 points or 0.38% to 16,311.28, KOSPI rose 12.55 points or 0.41% to 3,058.26, Jakarta Composite advanced 16.12 points or 0.25% to 6,340.38, and Shanghai Composite was up by 8.13 points or 0.24% to 3,428.08.