Benchmarks cut some gains in late morning session

Indian equity benchmarks cut some of their gains in late morning session but managed to trade in green with notable gains. Positive cues from other Asian markets helped key indices to remain higher. Traders were positive, after markets regulator SEBI rationalised the reporting requirements for alternative investment funds in order to provide ease of compliance for such entities. Alternative Investment Funds (AIFs) will have to submit report on their activities on a quarterly basis. The report has to be submitted within 10 days from the end of a quarter and the new requirement will be effective from the quarter ending December 31, 2021, as per a circular. However, some gains got trimmed, as India's debt to GDP ratio increased from 74 per cent to 90 per cent during the COVID-19 pandemic, the International Monetary Fund has said, noting that it expects this to drop down to 80 per cent as a result of the country's economic recovery.

On the global front, Asian markets were trading mostly in green, after the private sector in Hong Kong continued to expand marginally in March, and at a slightly faster pace, the latest survey from Markit Economics showed on Thursday with a seasonally adjusted PMI score of 50.5. That's up from 50.2 in February and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. Individually, March saw the sharpest increase in staffing levels since June 2011 as business activity stabilized.

The BSE Sensex is currently trading at 49949.37, up by 287.61 points or 0.58% after trading in a range of 49832.35 and 50118.08. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.91%, while Small cap index was up by 1.09%.

The top gaining sectoral indices on the BSE were Metal up by 2.21%, Basic Materials up by 1.85%, Consumer Durables up by 1.79%, Industrials up by 1.25% and Realty up by 1.24%, while Power down by 0.34%, Utilities down by 0.10% and Energy down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.96%, Titan Co up by 2.07%, Ultratech Cement up by 1.88%, Bajaj Finserv up by 1.59% and HDFC up by 1.44%. On the flip side, Bajaj Auto down by 0.58% and Bajaj Finance down by 0.33% were the top losers.

Meanwhile, rating agency ICRA in its latest report has said that the auto component industry is likely to see a lower contraction in revenue at 6-8 percent in the just-concluded financial year (FY21) as against previous forecast of 12-15 percent, on account of better-than-expected demand pick up across most of the sectors. It said passing of commodity prices and change in emission norms has also resulted in a 4-6 percent increase in realisations, partly supporting revenue growth during H2 FY21.

According to the report, the rebound in the current financial year (FY22) is expected to be strong at 20-23 percent, benefitting from demand pickup, the low base of FY21 and the impact of commodity prices on realisations. It said that industry revenue collapsed by approximately 60 percent Q1 FY21. It added that headwinds from disruption in automotive production due to supply chain constraints (primarily due to semi-conductor shortage globally) could play spoilsport in Q1 FY22 and maybe even beyond.

The report further said localised lockdown due to the recent spike in COVID-19 infections could also derail the growth momentum of the industry as footfalls to dealerships may shrink and remains monitorable and added that the overall revenue CAGR during FY20-2025 is likely to remain modest at 7-9 percent. It stated that automobile production volumes during H2 FY21 was significantly better than H1, capping the overall production volume decline for the fiscal. It said the aftermarket segment also witnessed sequential recovery from Q2 FY21, with the opening up of the economy, pent-up demand, delayed replacement of vehicles and festive season demand.

The CNX Nifty is currently trading at 14914.75, up by 95.70 points or 0.65% after trading in a range of 14864.55 and 14959.90. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.03%, Tata Motors up by 2.89%, JSW Steel up by 2.83%, Hindalco up by 2.57% and Tata Steel up by 2.46%. On the flip side, SBI Life Insurance down by 0.81%, Bajaj Finance down by 0.45% and Bajaj Auto down by 0.42% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 238.70 points or 0.83% to 28,913.50, Taiwan Weighted strengthened 74.27 points or 0.44% to 16,889.63, Jakarta Composite soared 17.55 points or 0.29% to 6,054.17, Shanghai Composite gained 6.56 points or 0.19% to 3,486.19 and Straits Times advanced 1.70 points or 0.05% to 3,197.46. On the flip side, KOSPI fell 1.54 points or 0.05% to 3,135.87 and Nikkei 225 slipped 94.11 points or 0.32% to 29,636.68.