Benchmarks remain higher with solid gains

Indian markets were trading in fine fettle in the afternoon session as optimism grew over the nation's accelerated vaccination programme to control the world’s largest surge in coronavirus infections. At present, Sensex and Nifty were trading above 49,400 and 14,800 levels due to heavy buying in auto, consumer discretionary and banking stocks. Gains in frontline blue chip stocks such as Bajaj Finance, Bajaj Finserv and Bajaj Auto also helped to lift the markets. Traders remain energized with Union Health Minister Harsh Vardhan’s statement that India is better prepared mentally and physically this year with more experience to beat the COVID-19 pandemic as compared to 2020. Adding more optimism, 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.  On the global front, Asian markets were trading mostly higher as investors watched for news out of a Federal Reserve meeting.

The BSE Sensex is currently trading at 49469.21, up by 525.07 points or 1.07% after trading in a range of 49066.64 and 49495.58. 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 0.87%, while Small cap index was up by 0.96%.

The top gaining sectoral indices on the BSE were Auto up by 2.61%, Consumer Discretionary up by 1.53%, Bankex up by 1.44%, Telecom up by 1.42% and PSU was up by 1.18%, while Metal down by 0.85% and IT was down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 6.81%, Bajaj Finserv up by 4.45%, Bajaj Auto up by 3.81%, Indusind Bank up by 3.09% and SBI was up by 2.72%. On the flip side, Nestle down by 0.61%, TCS down by 0.39%, Axis Bank down by 0.34%, HCL Tech down by 0.15% and Infosys was down by 0.10% were the top losers.

Meanwhile, 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.

Further, it said the gross domestic product (GDP) of South Asia is expected to rebound to 9.5 per cent this year, following a contraction of 6 per cent in 2020, before moderating to 6.6 per cent next year (2022). ADB said the economic growth in developing Asia is set to rebound to 7.3 per cent this year, supported by a healthy global recovery and an early progress on COVID-19 vaccines. The projected resurgence follows a 0.2 per cent contraction last year.

The report said ‘the region's growth is forecast to moderate to 5.3 per cent in 2022. Excluding the newly industrialized economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei, China, developing Asia's economic activity is expected to grow 7.7 per cent this year and 5.6 per cent in 2022’. The report projects that most economies in developing Asia will see healthy growth this year and in 2022.

Developing Asia comprises 46 members of ADB list on the basis of geographic group. These include new industrialized economies, countries in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific. The report said in China, strong exports and a gradual recovery in household consumption will boost economic activity this year.

The CNX Nifty is currently trading at 14802.25, up by 149.20 points or 1.02% after trading in a range of 14694.95 and 14804.50. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 7.01%, Eicher Motors up by 4.25%, Bajaj Finserv up by 4.15%, Bajaj Auto up by 3.82% and Indusind Bank was up by 3.16%. On the flip side, JSW Steel down by 1.58%, Hindalco down by 1.49%, Britannia Industries down by 1.11%, Tata Steel down by 0.80% and HDFC Life Insurance was down by 0.76% were the top losers.

Asian markets was trading mostly green, Straits Times advanced 0.94 points or 0.03% to 3,215.37, Hang Seng increased 73.30 points or 0.25% to 29,014.84, Shanghai Composite gained 3.85 points or 0.11% to 3,446.46, Nikkei 225 surged 62.08 points or 0.21% to 29,053.97 and Jakarta Composite was up by 9.03 points or 0.15% to 5,968.65.

On the other side, Taiwan Weighted dropped 28.37 points or 0.16% to 17,567.53 and KOSPI was down by 33.95 points or 1.06% to 3,181.47.