Equity markets continue firm trade in late afternoon session

Indian equity markets continued firm trade in the late afternoon session on account of buying in front line counters. Among heavy-weights Larsen & Toubro, Reliance Industries and HDFC Bank exhibited a smart performance. Sentiments remained upbeat even after private report stated that business activity in India registered its steepest weekly fall in over a year during the preceding week as the second wave of the pandemic continued to weigh on the economy, but the overall impact will be limited to the April-June quarter. Meanwhile, Reserve Bank of India (RBI) in its ‘April 2021’monthly Bulletin has said that as India battles the ferocious rise of new infections, a strong policy response is building. Economic activity in India is holding up against COVID -19’s renewed onslaught. Apart from contact-intensive sectors, activity indicators largely remained resilient in March and grew beyond pre-pandemic levels.

On the global front, Asian markets were trading mixed ahead of earnings from more blue-chip companies and the start of the Federal Reserve’s two-day policy meeting. European markets were trading mostly in green as global markets prepare for the US Federal Reserve’s two-day meeting, which begins today, and investors digest a slew of earnings.

The BSE Sensex is currently trading at 48881.52, up by 495.01 points or 1.02% after trading in a range of 48399.53 and 48903.85. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.93%, while Small cap index was up by 1.36%.

The top gaining sectoral indices on the BSE were Metal up by 2.37%, Capital Goods up by 2.11%, Basic Materials up by 2.05%, Industrials up by 1.94% and Energy was up by 1.88%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were Larsen & Toubro up by 3.57%, Reliance Industries up by 2.35%, HDFC Bank up by 2.23%, Bajaj Finance up by 1.64% and ICICI Bank up by 1.62%. On the flip side, Kotak Mahindra Bank down by 1.11%, NTPC down by 0.44%, Nestle down by 0.18%, Dr. Reddys Lab down by 0.18% and Axis Bank down by 0.01% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its ‘April 2021’monthly Bulletin has said that as India battles the ferocious rise of new infections, a strong policy response is building. Economic activity in India is holding up against COVID -19’s renewed onslaught. Apart from contact-intensive sectors, activity indicators largely remained resilient in March and grew beyond pre-pandemic levels.

As per the RBI, the resurgence in COVID-19, if not contained in time, risks protracted restrictions and disruptions in supply chains with consequent inflationary pressures. Pandemic protocols, speedier vaccination, ramping up hospital and ancillary capacity, and remaining resolutely focused on a post pandemic future of strong and sustainable growth with macroeconomic and financial stability is the way forward.

RBI further said that asset reconstruction companies (ARCs) are important players in the asset resolution mechanism in India. Unlike many other countries that experimented with a public sector model of asset management companies marked by their existence for a pre-defined period following banking crises or crises-like situations, India introduced ARCs as private sector institutions as part of its ongoing financial sector reforms.

The CNX Nifty is currently trading at 14633.20, up by 148.20 points or 1.02% after trading in a range of 14484.85 and 14640.55. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.92%, Larsen & Toubro up by 3.56%, Adani Ports up by 2.94%, Tata Steel up by 2.93% and Reliance Industries up by 2.55%. On the flip side, HDFC Life Insurance down by 3.48%, SBI Life down by 1.49%, Kotak Mahindra Bank down by 1.03%, NTPC down by 0.20% and HCL Tech down by 0.14% were the top losers.

Asian markets were trading mixed, Nikkei 225 slipped 134.34 points or 0.46% to 28,991.89, Hang Seng decreased 11.29 points or 0.04% to 28,941.54, Jakarta Composite lost 5.20 points or 0.09% to 5,959.62, KOSPI was down by 2.11 points or 0.07% to 3,215.42. On the flip side, Shanghai Composite gained 1.44 points or 0.04% to 3,442.61, Straits Times advanced 6.64 points or 0.21% to 3,211.54 and Taiwan Weighted was up by 23.61 points or 0.13% to 17,595.90.

European markets were trading mostly in green, UK’s FTSE 100 increased 4.18 points or 0.06% to 6,967.30 and France’s CAC was up by 5.50 points or 0.09% to 6,281.02. On the flip side, Germany’s DAX was down by 30.01 points or 0.2% to 15,266.33.