Benchmarks trade deeply in red in early deals

Indian equity benchmarks extend their previous session’s losses with negative start on Thursday amid overnight losses on the Wall Street. Markets are trading lower with cut of over 0.70% each in early deals on account of selling in almost all the sector indices, led by Power, Realty and Energy, while only Metal traded up. Volatility may remain in the markets due to expiry of F&O series. Rising coronavirus cases dampened sentiments in the markets. India has registered 53,419 fresh cases of Covid-19 in the past 24 hours, taking to tally to 11,787,013, according to Worldometer. The death toll from the deadly infection jumped to 160,726. India has the 7th highest number of active cases globally. Meanwhile, market participants are eyeing on updates from today's board meeting of the Securities and Exchange Board of India. Traders largely overlooked report that Fitch Ratings revised India's GDP growth estimate to 12.8 per cent for the fiscal year beginning April 1 from its previous estimate of 11 per cent, saying its recovery from the depths of the lockdown-induced recession has been swifter than expected.

On the global front, most of the Asian markets were trading higher despite negative cues overnight from Wall Street. Investors are largely upbeat about a stimulus-fueled global economic recovery after reports that the Biden administration is considering up to $3 trillion in additional spending on infrastructure, green energy, and education. Back home, power stocks were in focus as Power distribution companies (discoms) in 26 of India’s 36 states and union territories (UT) have witnessed an increase in overdue since last year; with 30 territories having dues pending for more than two months. In scrip specific development, Jubilant FoodWorks gained as it announced to introduce American multinational chain of fried chicken fast-food restaurants 'Popeyes', to India.

The BSE Sensex is currently trading at 48802.25, down by 378.06 points or 0.77% after trading in a range of 48770.29 and 49247.95. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.94%, while Small cap index was down by 1.21%.

The only gaining sectoral index on the BSE was Metal up by 0.37%, while Power down by 1.27%, Realty down by 1.23%, Energy down by 1.03%, Bankex down by 1.01%, PSU down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 0.81%, Titan Company up by 0.55%, Larsen & Toubro up by 0.45%, Asian Paints up by 0.32% and Dr. Reddy’s Lab up by 0.13%. On the flip side, Indusind Bank down by 1.87%, Kotak Mahindra Bank down by 1.60%, Bajaj Finance down by 1.52%, Maruti Suzuki down by 1.45% and SBI down by 1.43% were the top losers.

Meanwhile, Fitch Ratings in its latest report has revised India's Gross domestic product (GDP) growth estimate to 12.8 percent for the next fiscal year beginning April 1 from its previous estimate of 11 percent. It also said that India's recovery from the depths of the lockdown-induced recession in 2020 (calendar year) has been swifter than expected. It also said revision is on the back of a stronger carryover effect, a looser fiscal stance and better virus containment. Nevertheless, it expects the level of Indian GDP to remain well below its pre-pandemic forecast trajectory.

According to the report, the rapid pace of expansion at the end of 2020 was powered by falling virus cases and the gradual rollback of restrictions across States and Union territories. High-frequency indicators point to a strong start to 2021. It also said the manufacturing PMI remained elevated in February, while the pick-up in mobility and a rise in the services PMI point to further gains in the services sector. However, it said the recent flare up in new virus cases in some states has prompted us to expect milder growth in 2021.

The rating agency further said spending is set to be increased substantially, notably infrastructure, healthcare, and military outlays. Looser fiscal policy should support the short-term cyclical recovery, which along with stronger underlying growth momentum prompted FY22 GDP growth forecast revision. It stated that the increase in inoculation to the most at-risk people should allow restrictions to be eased significantly towards end-2021 and in 2022. This should further support services sector activity and consumption. However, it said an impaired financial sector is likely to keep the provision of credit tight, limiting investment spending.

The CNX Nifty is currently trading at 14445.95, down by 103.45 points or 0.71% after trading in a range of 14431.70 and 14575.60. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 1.15%, ONGC up by 1.05%, UPL up by 0.46%, Larsen & Toubro up by 0.39% and JSW Steel up by 0.37%. On the flip side, Eicher Motors down by 2.05%, Tata Motors down by 2.02%, BPCL down by 1.93%, Kotak Mahindra Bank down by 1.63% and Indusind Bank down by 1.46% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 245.96 points or 0.87% to 28,651.48, Straits Times rose 9.77 points or 0.31% to 3,143.08, Hang Seng added 1.81 points or 0.01% to 27,919.95, Taiwan Weighted gained 34.44 points or 0.21% to 16,066.56, and KOSPI advanced 4.59 points or 0.15% to 3,000.94. On the other hand, Jakarta Composite plunged 55.86 points or 0.91% to 6,100.28, and Shanghai Composite was down by 0.42 points or 0.01% to 3,366.64.