Barometer gauges maintain gains

Indian stock markets continued to trade in positive terrain in the afternoon session due to buying in metal, basic materials and power stocks. Buying in frontline stocks such as Bajaj Auto, HCL Tech and Sun Pharma were aiding sentiment, while selling in Nestle, HDFC Bank and TCS kept the gains in the markets in check. Traders remain energized with Economic Affairs Secretary Tarun Bajaj’s statement that the government will borrow Rs 7.24 lakh crore, which is 60.06 percent of the gross issuances, in the first half of 2021-22 fiscal (H1FY22) to meet resources to perk up the economy hit by the coronavirus pandemic. However, upside remain capped as the combined output of the eight core sector industries fell at the fastest pace in 6-months, contracting 4.6 per cent in February, from a year ago, confirming fears that a recovery in industrial growth would be slower than expected. Meanwhile, amid the coronavirus outbreak, government has extended the existing foreign trade policy (FTP) for six more months. The current policy will now be valid up to September 30, instead of March 31.

On the global front, Asian stock markets were trading mostly higher after Japan and South Korea reported unexpectedly strong economic data and President Joe Biden announced a $2.3 trillion U.S. infrastructure spending plan. Back on street, in scrip specific developments, Piramal Enterprises surged after the company's arm -- Piramal Pharma acquired Hemmo Pharmaceuticals and Tata Steel regained market capitalisation (market-cap) of Rs 1 trillion after the stock hit its highest level since June 2008, on healthy operational performance and expectation of improvement in the company's outlook.

The BSE Sensex is currently trading at 49634.76, up by 125.61 points or 0.25% after trading in a range of 49478.53 and 49942.84. There were 23 stocks advancing against 6 stocks declining, while 1 stock remains unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.73%, while Small cap index was up by 1.46%.

The top gaining sectoral indices on the BSE were Metal up by 4.36%, Basic Materials up by 2.29%, Power up by 1.72%, Utilities up by 1.53% and Industrials was up by 1.34%, while Realty down by 0.11% and Consumer Durables was down by 0.03% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.13%, HCL Tech up by 2.10%, Sun Pharma up by 1.63%, NTPC up by 1.46% and Ultratech Cement was up by 1.41%. On the flip side, Nestle down by 0.97%, HDFC Bank down by 0.94%, TCS down by 0.45%, Mahindra & Mahindra down by 0.40% and Hindustan Unilever was down by 0.24% were the top losers.

Meanwhile, the growth of eight core infrastructure industries declined by 4.6 percent in February 2021, the steepest contraction in the last six months which could drag the overall industrial production in the month into the negative territory. The growth rate of the eight infrastructure sectors stood at 6.4 percent in February 2020. In January this year, the segments have registered a positive growth of 0.9 per cent. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). 

Among eight core sectors, Steel production having 17.92 percent weight declined by 1.8 percent in February, 2021 over February,2020 and Its cumulative index declined by 12.4 percent during April to February, 2020-21 over the corresponding period of previous year. Fertilizer production having 2.63 percent weight declined by 3.7 percent in February,2021 over February, 2020, while its cumulative index increased by 2.4 percent during April to February, 2020-21 over the corresponding period of previous year. Electricity generation having 19.85 percent weight declined by 0.2 percent in February, 2021 over February, 2020 and its cumulative index declined by 2.5 percent during April to February, 2020-21 over the corresponding period of previous year.

Crude Oil production having 8.98 percent weight declined by 3.2 percent in February, 2021 over February, 2020 and its cumulative index declined by 5.4 percent during April to February, 2020-21over the corresponding period of previous year. Natural Gas production having 6.88 percent weight declined by 1.0 percent in February, 2021 over February, 2020 and its cumulative index declined by 9.9 percent during April to February, 2020-21 over the corresponding period of previous year.

Petroleum Refinery production having 28.04 percent weight declined by 10.9 percent in February, 2021 over February, 2020 and its cumulative index declined by 12.2 percent during April to February, 2020-21 over the corresponding period of previous year. Cement production having 5.37 percent weight declined by 5.5 percent in February, 2021 over February,2020 and its cumulative index declined by 15.5 percent during April to February, 2020-21 over the corresponding period of previous year. Coal production having 10.33 percent weight declined by 4.4 percent in February, 2021 over February, 2020 and its cumulative index declined by 2.2 percent during April to February, 2020-21over corresponding period of the previous year.

The CNX Nifty is currently trading at 14751.05, up by 60.35 points or 0.41% after trading in a range of 14692.45 and 14814.65. There were 39 stocks advancing against 10 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were JSW Steel up by 7.33%, Hindalco up by 5.60%, Tata Steel up by 4.38%, Adani Ports up by 3.17% and Hero MotoCorp was up by 2.45%. On the flip side, HDFC Life Insurance down by 1.11%, HDFC Bank down by 1.01%, Nestle down by 0.85%, Grasim Industries down by 0.45% and TCS was down by 0.44% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 140.15 points or 0.85% to 16,571.28, Hang Seng increased 308.57 points or 1.09% to 28,686.92, Shanghai Composite gained 17.09 points or 0.5% to 3,459.00, KOSPI rose 23.93 points or 0.78% to 3,085.35, Nikkei 225 surged 210.07 points or 0.72% to 29,388.87 and Straits Times was up by 9.00 points or 0.28% to 3,174.34. On the other side, Jakarta Composite was down by 7.44 points or 0.12% to 5,978.08.