Domestic indices trade higher with notable gains in early deals

Indian equity benchmarks made optimistic start on Wednesday despite muted cues from Asian peers. Markets added gains and are trading firm in early deals. Board based buying in Auto, Consumer discretionary and Telecom stocks supported the markets. Some support also came in with report that as the registration for the next phase of Covid-19 vaccinations for all above 18 years of age opens, the health ministry shared data to counter claims that vaccines in several states, including Maharashtra, were out of stock. The data showed that 150 million doses had been given to the states so far, of which 10 million were still available with them. Traders took note of the commerce ministry’s statement that the country's exports of organic food products rose by 51 percent year-on-year to $1 billion (Rs 7,078 crore) in 2020-21. Meanwhile, a day after reported a slight dip in the number of fresh Covid infections and fatalities, India recorded a massive surge of 362,902 cases and 3,285 deaths, Worldometer showed.

On the global front, most of the Asian markets were trading lower following mixed cues overnight from Wall Street, as traders are refraining from making major moves ahead of the Federal Reserve's latest monetary policy decision later today. Uncertainty about the pace of global economic rebound due to the continued surge in coronavirus cases in India and Japan are also weighing on the market. Back home, telecom stocks were in focus as domestic credit rating agency Crisil's research wing pointed out that there is a close contest between the top two telcos, when one goes by active subscriber base with Jio's share at 33.7 per cent and Airtel's at 33.6 per cent. In scrip specific development, TVS Motor Company soared after reporting a four-fold increase in Q4 profit. Info Edge jumped as it will sell stake worth Rs 750 crore in the initial public offering (IPO) of its investee company Zomato.

The BSE Sensex is currently trading at 49247.37, up by 303.23 points or 0.62% after trading in a range of 49066.64 and 49334.16. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.68%, while Small cap index was up by 0.76%.

The top gaining sectoral indices on the BSE were Auto up by 1.74%, Consumer discretionary up by 1.18%, Telecom up by 0.95%, PSU up by 0.90%, Bankex up by 0.86%, while Metal down by 0.78%, Basic Materials down by 0.11% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 3.31%, Bajaj Finance up by 2.46%, Bajaj Finserv up by 2.08%, SBI up by 2.00% and Indusind Bank up by 1.79%. On the flip side, Axis Bank down by 0.51%, Ultratech Cement down by 0.49%, Dr. Reddy’s Lab down by 0.36%, Larsen & Toubro down by 0.25% and Reliance Industries down by 0.22% were the top losers.

Meanwhile, domestic rating agency, Brickwork Ratings in its latest report has revised downwards the country’s FY22 GDP growth projection to 9 per cent from an earlier estimate of 11 per cent. It said that the deadly second wave of COVID-19 has brought an abrupt halt to the country’s nascent economic recovery from the pandemic.

It said ‘the outlook for growth continues to remain positive mainly due to the low base, and we revise FY22 GDP growth to 9 per cent from the earlier estimates of 11 per cent.’ It stated until the virus spreads are contained, and a substantial proportion of the population has been vaccinated, the sectors that are impacted by social distancing norms and those adversely affected by supply disruptions, labour shortage and demand reduction will continue to trail and may take longer to return to sustained growth path.

It mentioned the revival in sectors that fall under discretionary spending may also be further delayed due to the second wave. Besides, it said the Indian economy entered the calendar year 2021 with bright hopes of achieving double-digit growth in FY22 backed by dramatic decline in new COVID infections, in addition to progress in developing an effective vaccine for COVID-19.

The CNX Nifty is currently trading at 14736.25, up by 83.20 points or 0.57% after trading in a range of 14694.95 and 14760.15. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 3.42%, Bajaj Finance up by 2.63%, Hero MotoCorp up by 2.04%, UPL up by 1.93% and SBI up by 1.91%. On the flip side, Britannia Industries down by 1.87%, JSW Steel down by 1.49%, SBI Life Insurance down by 0.93%, Hindalco down by 0.89% and Ultratech Cement down by 0.62% were the top losers.

Asian markets were trading mostly in red; Straits Times lost 2.43 points or 0.08% to 3,212.00, Hang Seng gained 36.95 points or 0.13% to 28,978.49, Taiwan Weighted declined 42.99 points or 0.24% to 17,552.91, KOSPI slipped 28.97 points or 0.90% to 3,186.45 and Shanghai Composite was down by 1.51 points or 0.04% to 3,441.10. However, Nikkei 225 rose 98.69 points or 0.34% to 29,090.58 and Jakarta Composite added 7.23 points or 0.12% to 5,966.85.