Indices add some gains in morning deals

Indian equity benchmarks added some gains in morning deals, tracking gains in index majors Asian Paints, Infosys and Ultratech Cement amid positive trend in global markets. Sentiments remained up-beat 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. Traders overlooked Credit rating agency ICRA’s report stated 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. Traders also took a note of report that Prime Minister Narendra Modi will interact with chief ministers on the Covid-19 situation and the ongoing vaccination drive on Wednesday as the Centre looks to ramp up the inoculation exercise amid a rise in infection in some states.

On the global front, Asian markets were trading in green as bond yields eased from 13-month highs, owing to optimism over US stimulus and all eyes being on the US Federal Reserve which is said to meet later this week. Back home, on the sectoral front, Oil & gas sector stocks remained in focus as finance minister Nirmala Sitharaman said at present, there is no proposal to bring crude petroleum, petrol, diesel, ATF and natural gas under GST.

The BSE Sensex is currently trading at 50662.57, up by 267.49 points or 0.53% after trading in a range of 50448.98 and 50698.60. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.28%, while Small cap index up by 0.49%.

The top gaining sectoral indices on the BSE were IT up by 2.00%, TECK up by 1.69%, Telecom up by 0.79%, FMCG up by 0.53% and Consumer Discretionary up by 0.50%, while Metal down by 1.26%, Realty down by 0.47%, Energy down by 0.32%, Bankex down by 0.09% and PSU down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.93%, Infosys up by 2.10%, Ultratech Cement up by 1.99%, HCL Technologies up by 1.77% and TCS up by 1.66%. On the flip side, SBI down by 0.83%, Bajaj Auto down by 0.72%, Larsen & Toubro down by 0.44%, Reliance Industries down by 0.33% and Sun Pharma down by 0.31% were the top losers.

Meanwhile, rating agency Icra has said 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 current financial year (FY21), impacted by a 66 per cent year-on-year slip in passenger traffic amid COVID-19 induced travel restrictions.The agency also said that given the significant delays in tariff orders in the past, timely tariff orders of regulator Airports Economic Regulatory Authority, which adequately compensates for the ongoing Capex and revenue loss due to COVID remains critical from the credit perspective.

It mentioned domestic passenger traffic may drop by 61 per cent, while the international passenger traffic will nose dive by 85 per cent in 2020-21. However, it stated the industry could see its profitability improving to Rs 190 crore backed by an expected massive 130 per cent year-on-year recovery in traffic in the next fiscal.

It said the major growth drivers for the sectors in the near-term will be the success of mass vaccination, resumption of business travel, improvement in leisure travel, a ramp-up in non-aero revenue streams and monetisation of real-estate land parcels.

The CNX Nifty is currently trading at 14990.95, up by 61.45 points or 0.41% after trading in a range of 14939.45 and 15016.15. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 3.01%, Ultratech Cement up by 1.96%, Infosys up by 1.92%, TCS up by 1.82% and HCL Technologies up by 1.73%. On the flip side, Tata Steel down by 1.60%, JSW Steel down by 1.51%, Hindalco down by 1.12%, Divis Lab down by 1.00% and BPCL down by 0.98% were the top losers.

Asian markets were trading in green; Hang Seng increased 179.20 points or 0.62% to 29,012.96, Nikkei 225 surged 173.97 points or 0.58% to 29,940.94, Straits Times advanced 2.01 points or 0.06% to 3,108.01, KOSPI rose 16.49 points or 0.54% to 3,062.20, Taiwan Weighted strengthened 47.63 points or 0.29% to 16,296.96, Shanghai Composite gained 8.13 points or 0.24% to 3,428.08 and Jakarta Composite soared 7.09 points or 0.11% to 6,331.35.