Bulls tighten grip over Dalal Street in late morning session

Bulls were holding a tight grip over Dalal Street in late morning session, with both Sensex and Nifty maintaining their gaining momentum. Domestic sentiments were positive, after the head of an India-centric American business advocacy group has said that America's corporate sector has stepped up its efforts to help India in its battle against the COVID-19 pandemic and ensure that lives are saved. Besides, amid the ‘strong’ vaccine drive, the Asian Development Bank (ADB) in its flagship Asian Development Outlook (ADO) 2021 has stated that India’s economy is likely to grow at 11 per cent in the current fiscal year (FY) 2021-2022, which ends on March 31, 2022. However, it cautioned that the surge in COVID-19 cases may put the country's economic recovery at risk. It added that for FY 2022-2023, India's GDP is expected to expand at 7 per cent.

On the global front, Asian markets were trading mostly in red, after Hong Kong's merchandise exports grew at a softer pace in March. The data from the Census and Statistics Department showed that exports rose 26.4 percent year-on-year in March, after a 30.4 percent increase in February. Imports gained 21.7 percent annually in March, following a 17.6 percent increase in the previous month.The trade deficit widened to HK$26.967 billion in March from HK$34.707 billion in the same month last year. In February, the deficit was HK$14.699 billion.

The BSE Sensex is currently trading at 49429.54, up by 485.40 points or 0.99% after trading in a range of 49066.64 and 49449.23. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.72%, while Small cap index was up by 0.90%.

The top gaining sectoral indices on the BSE were Auto up by 2.46%, Telecom up by 1.51%, Consumer discretionary up by 1.44%, Bankex up by 1.19% and PSU up by 0.99%, while Metal down by 1.25%, Basic Materials down by 0.11%, IT down by 0.06% and Realty down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 6.27%, Bajaj Finserv up by 4.31%, Bajaj Auto up by 3.65%, Indusind Bank up by 3.37% and SBI up by 2.35%. On the flip side, Axis Bank down by 1.03%, Nestle down by 0.69%, TCS down by 0.52%, HCL Tech down by 0.28% and Infosys down by 0.08% were the top losers.

Meanwhile, the Finance Industry Development Council (FIDC) has written to the Reserve Bank of India (RBI) seeking restructuring of stressed retail and individual borrowers of non-banking finance companies (NBFCs), irrespective of whether these loans have been restructured earlier.  The industry body also requested to the RBI Governor Shaktikanta Das loan recast for smaller NBFCs, having asset size of less than Rs 500 crore. FIDC requesting extension of the restructuring scheme till March 31, 2022 said ‘Considering the severe second wave of COVID-19, the retail borrowers, including the MSMEs, as also the retail and wholesale trader industry shall be in urgent need of support from the lenders, to revive their economic activities’.

It said the borrower accounts, irrespective of whether or not such accounts had been 'restructured' on any earlier occasion and which are 'standard' accounts as on March 31, 2021, may be allowed 'restructuring' without any downgrade in asset classification. However, this will be subject to the lending NBFCs undertaking fresh credit assessment of the borrowing entity. The industry body urged the RBI to allow standstill on buckets for restructured accounts for the first quarter of FY22. It further said the only mode of borrowings for the smaller NBFCs (having asset size of less than Rs 500 crore) is to raise term loans from banks, financial institutions like Sidbi, Nabsamruddhi and Nabkisan and large NBFCs. These smaller players do not have access to the capital markets and they do not issue bonds.

The FIDC said ‘We therefore submit that these small NBFCs may be given the benefit of getting their loans restructured (one-time) from banks and financial institutions (FIs)’. It said the restructuring will ensure that these small NBFCs remain eligible for further bank finance, there is no mismatch in their asset liability position and will help them to support their wholesale and retail borrowers with fresh credit. The industry body also urged the RBI to increase the overall support outlay to All India Financial Institutions (AIFIs) - Nabard, Sidbi, NHB and Exim Bank- from Rs 50,000 crore to at least Rs 75,000 crore.

The CNX Nifty is currently trading at 14779.75, up by 126.70 points or 0.86% after trading in a range of 14694.95 and 14787.30. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 6.59%, Bajaj Finserv up by 4.94%, Eicher Motors up by 4.18%, Bajaj Auto up by 3.65% and Indusind Bank up by 3.36%. On the flip side, JSW Steel down by 1.79%, Hindalco down by 1.69%, Britannia down by 1.49%, SBI Life Insurance down by 1.25% and Tata Steel down by 1.15% 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 slipped 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. On the flip side, Nikkei 225 rose 98.69 points or 0.34% to 29,090.58 and Jakarta Composite added 7.17 points or 0.12% to 5,966.79.