Sensex, Nifty add gains in late morning deals

Firm trade continued over the Dalal Street in late morning deals, with both Sensex and Nifty adding more gains, despite negative cues from other Asian markets. Domestic sentiments were positive, amid reports that in a show of solidarity, the CEOs of about 40 top American companies have come together to create a first-of-its-kind country-specific global task force to mobilise resources and coordinate efforts to help India fight the battle against COVID-19. Adding more relief among traders, bank credit grew by 5.33 per cent to Rs 108.89 lakh crore, and deposits rose 10.94 per cent to Rs 152.15 lakh crore in the fortnight ended April 9, 2021. In the fortnight ended April 10, 2020, bank advances stood at Rs 103.38 lakh crore and deposits were Rs 137.15 lakh crore.

On the global front, Asian markets were trading mostly in red, after Singapore's industrial production grew at a softer pace in March. The data from the Economic Development Board showed that industrial output rose 7.6 percent year-on-year in March, after a 16.5 percent growth in February. Production was forecast to increase 3.0 percent. Excluding biomedical manufacturing, industrial production grew 14.9 percent yearly in March, after a 13.9 percent increase in the preceding month.

The BSE Sensex is currently trading at 48741.96, up by 355.45 points or 0.73% after trading in a range of 48399.53 and 48757.26. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.67%, while Small cap index was up by 1.19%.

The top gaining sectoral indices on the BSE were Metal up by 2.09%, Energy up by 1.89%, Telecom up by 1.59%, Basic Materials up by 1.55% and Industrials up by 1.48%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Reliance Industries up by 2.28%, Larsen & Toubro up by 2.18%, Bajaj Finance up by 1.98%, Indusind Bank up by 1.56% and HDFC Bank up by 1.53%. On the flip side, Tech Mahindra down by 1.37%, Kotak Mahindra Bank down by 1.28%, Axis Bank down by 0.74%, NTPC down by 0.44% and Asian Paints down by 0.35% were the top losers.

Meanwhile, citing the country’s escalating health burden, faltering vaccination rate and lack of a convincing government strategy to contain the pandemic, global forecasting firm -- Oxford Economics has revised downwards its India GDP growth forecast for 2021 to 10.2 per cent from 11.8 per cent previously. Oxford Economics also said that notwithstanding the likelihood of further mobility restrictions, it expects India’s targeted lockdown approach, less stringent restrictions, and resilient consumer and business behaviour to mitigate the economic impact of the second wave.

It added ‘India’s escalating health burden, faltering vaccination rate, and lack of a convincing government strategy to contain the pandemic have prompted us to downgrade our 2021 GDP growth forecast to 10.2 per cent from 11.8 per cent previously’. The global forecasting firm also expects GDP to contract sequentially in the second quarter. But if struggling health systems force more states to resort to stricter lockdowns like Maharashtra, we will likely lower our growth forecast further

Oxford Economics said India’s health system has collapsed in the worst-hit states, with even the national capital Delhi facing acute shortage of oxygen and COVID-19 hospital beds. It noted that ‘While the official mortality rate has edged lower, it masks a rapidly rising death count. Deaths are now doubling every ten days (as opposed to an average of 29 days in the first wave) and even this figure is likely buttressed by delayed or under-reporting of deaths’. India is struggling with a second wave of the pandemic with more than 3,00,000 daily new coronavirus cases being reported in the past few days, and hospitals in several states are reeling under a shortage of medical oxygen and beds.

The CNX Nifty is currently trading at 14593.75, up by 108.75 points or 0.75% after trading in a range of 14484.85 and 14596.00. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.04%, Larsen & Toubro up by 2.32%, Reliance Industries up by 2.28%, Tata Steel up by 2.23% and Adani Ports & SEZ up by 2.17%. On the flip side, HDFC Life Insurance down by 2.95%, SBI Life Insurance down by 1.33%, Tech Mahindra down by 1.24%, Kotak Mahindra Bank down by 1.19% and Axis Bank down by 0.54% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 lost 44.13 points or 0.15% to 29,082.10, Hang Seng fell 35.84 points or 0.12% to 28,916.99, Taiwan Weighted declined 27.69 points or 0.16% to 17,544.60, KOSPI slipped 9.19 points or 0.29% to 3,208.34, Jakarta Composite decreased 4.93 points or 0.08% to 5,959.89 and Shanghai Composite was down by 18.65 points or 0.54% to 3,422.52. On the flip side, Straits Times rose 1.11 points or 0.03% to 3,206.01.