Indian markets ended over 1.5 percent higher Wednesday led by banks, auto and financial stocks. Today, the start of April F&O expiry session is likely to be positive tracking gains in Asian peers. Strong earnings reports from top Indian companies may supported the sentiment on the Street amid continues pressure due to coronavirus pandemic. Traders may take note of report that The Finance Ministry has waived permissions required from any government departments for customs clearance of COVID-related relief material imported by the Indian Red Cross Society. Besides, the Union Cabinet has approved the signing of a deal between India and the United Kingdom on information sharing and preventing Customs offences. The agreement is also expected to facilitate trade and ensure clearance of goods traded between the countries. There will be some volatility in the markets on account of the April F&O expiry. However, massive surge in coronavirus cases may dampen sentiments in the markets. India reported a massive surge of 379,459 cases and 3,647 deaths, thus marking the biggest single-day spike ever, Worldometer showed. There may be some cautiousness with ICRA’s report that the ongoing second wave of COVID-19 will dampen the pace of recovery for corporate India and the contact-intensive sectors will be hit the most. However, the impact of the second wave on many sectors is set to be lower than the first because the lockdowns are less widespread and stringent as of now as against the strong nationwide lockdown last year which brought all economic activities to a grinding halt. Meanwhile, India has imposed anti-dumping duty on imports of a chemical used in foam making from four regions, including the EU and Saudi Arabia, for five years to guard domestic players from cheap shipments. Auto industry stocks will be in focus as the NITI Aayog recommended the government provide subsidy for electric vehicle purchase over and above the existing subsidy scheme for electric vehicle adoption under the Faster Adoption and Manufacturing the Electric Vehicles scheme besides including EVs under priority lending sector. Besides, PowerGrid Infrastructure Investment Trust's initial public offer will open for subscription today. The company has fixed a price band of Rs 99-100 per unit for its Rs 7,735 crore IPO. It raised a little over Rs 3,480 crore from anchor investors ahead of the IPO offer.
The US markets ended lower on Wednesday after the US Federal Reserve held interest rates and its monthly bond-buying program steady and gave no sign it was ready to reduce its support for the recovery. Asian markets are trading higher on Thursday as US Federal Reserve decided to keep short-term interest rates near zero.
Back home, bulls tightened their grip on Dalal Street on Wednesday with frontline gauges ended near intraday high levels, reclaiming their crucial 49,700 (Sensex) and 14,850 (Nifty) levels. Indian equity benchmarks made a gap-up opening and gained strength to strength throughout the day as traders opted to buy risky assets. Sentiments remained optimistic 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. Markets extended rally after 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. Sentiments 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. Some support also came after the Cabinet has approved the signing and ratification of an Agreement between the Government of Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland on Customs Cooperation and Mutual Administrative Assistance in Customs Matters. Meanwhile, 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. Finally, the BSE Sensex surged 789.70 points or 1.61% to 49,733.84, while the CNX Nifty was up by 211.40 points or 1.44% to 14,864.55.
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