Markets likely to make negative start tracking weakness in global peers

Indian markets pared early losses and ended higher on Thursday led by metals and financials. Today, the markets are likely to make negative start tracking weakness in global peers and worries over a continuous spike in coronavirus cases in the county. India reported 332,503 fresh coronavirus infections on Friday, taking the cumulative caseload to 16,257,309, Worldometer showed. Delhi recorded its highest ever single-day fatalities -- 306 people died as more than 26,000 fresh cases were logged. Meanwhile, Maharashtra reported 67,013 new Covid-19 cases and 568 deaths in the last 24 hours. Uttar Pradesh recorded highest single-day spike of 34,379 cases. Coronavirus cases rise unabated across the globe with 145,312,232 infected by the deadly contagion. There will be some cautiousness as S&P Global Ratings said the Indian economy is projected to grow at 11 per cent in the current fiscal, but flagged the substantial impact of broader lockdowns on the economy. In its report on Asia-Pacific Financial Institutions, S&P said the control of COVID-19 remains a key risk for the economy. New infections have spiked in recent weeks and the country is in the middle of a second pandemic wave. Also, rating agency Fitch Ratings has affirmed India’s long-term foreign-currency Issuer Default Rating (IDR) at ‘BBB-’ with a negative outlook. However, traders may take note of report that amid reports of shortage of oxygen in the hospitals during the second wave of Covid across the country, India will be importing oxygen generation plants and containers from Germany to cater the shortage. Meanwhile, Initial public offerings (IPO) activity in India jumped massively in the January-March period of 2021, fuelled by ample liquidity, robust demand and investor appetite. On the BSE and NSE, there were 17 IPOs in Q1CY2021 as compared to 1 IPO in the same period last year and 10 IPOs in Q4CY2020. Banking stocks will be in focus as the Reserve Bank of India (RBI) said that in order to stay resilient during the Covid-19 crisis banks could pay maximum 50 per cent of dividend from their profits in 2020-21. There will be some important earnings announcements too to keep the markets buzzing.

The US markets ended lower on Thursday following losses in global peers and worries over a continuous spike in coronavirus cases in the county. Asian markets are trading mixed on Friday following an overnight drop on Wall Street.

Back home, Buying in second half of the trade helped Indian equity benchmarks to end near intraday high points. Markets started the session on pessimistic note as traders remained worried over the second wave of COVID-19 in the country and tightening of restrictions in various states weighted down on the markets. India reported 315,802 fresh coronavirus infections on Thursday, taking the cumulative caseload to 15,924,806. Sentiments also remain dampened after Care Ratings revised down its forecast for GDP growth to 10.2 per cent in 2021-22 from earlier projection of 10.7-10.9 per cent, with economic activities getting affected across the country due to curbs imposed by states amid surge in COVID-19 cases. Adding to the worries, domestic rating agency ICRA has cut its 2021-22 GDP growth estimate by 0.5 per cent on the upper end. The agency now expects the economy to grow 10-10.5 per cent in 2021-22, against the 10-11 per cent estimated earlier. Starting with Maharashtra, a slew of other pockets in the country like Delhi have been taking to localised lockdowns to arrest the climbing COVID-19 cases, which derails economic activity. However, markets started paring losses as traders took some support with Commerce Secretary Anup Wadhawan’s statement that the country's exports are reviving and the shipments are expected to be in the solid positive territory in this financial year. He said that exports recorded a significant contraction in April last year but gradually things started improving and the shipments have entered the positive territory. Key gauges entered into green terrain in second half of the trade as traders opted to buy beaten down but fundamentally strong stocks. Traders also took some solace after the Retirement fund body, Employees' Provident Fund Organisation (EPFO) in its latest ‘Provisional Estimate of Net Payroll’ data report has showed that India created 1237489 new jobs in the month of February 2021 as against revised figure of 1195383 in January 2021. Finally, the BSE Sensex gained 374.87 points or 0.79% to 48,080.67, while the CNX Nifty was up by 109.75 points or 0.77% to 14,406.15.