Equity markets continue to trade with gains

Indian equity markets continued to trade with gains in the late afternoon session. The broader indices, BSE Mid cap index and Small cap index are also trading in green. Among heavy-weights Sun Pharma, Kotak Mahindra Bank and Dr. Reddys exhibited a smart performance. Traders remain energized after Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled liquidity support measures amid rising Covid-19 cases in India. Shaktikanta Das said that the 2nd wave of COVID-19 in India has drastically altered the economic situation. He added that RBI will continue to monitor emerging situation, using all resources. Further, RBI announced fresh restructuring resolutions for individuals, small businesses and Micro, Small and Medium Enterprises (MSME) borrowers who have an aggregate exposure of upto Rs 25 crore.

On the global front, Asian markets were trading mostly in red after Treasury Secretary Janet Yellen’s suggestion that US interest rates might need to be hiked, as government spending measures fan inflation and the economy surges. European markets were trading higher after a sharp selloff in the previous session, helped by gains in commodity and banking stocks, while optimism about a strong earnings season and a speedy economic recovery dominated the markets.

The BSE Sensex is currently trading at 48550.62, up by 297.11 points or 0.62% after trading in a range of 48254.32 and 48726.80. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.50%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.48%, Bankex up by 1.09%, Telecom up by 0.91%, TECK up by 0.69% and IT was up by 0.67%, while Realty down by 0.68%, Energy down by 0.07% and FMCG was down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 5.02%, Kotak Mahindra Bank up by 1.82%, Dr. Reddys Lab up by 1.73%, Axis Bank up by 1.54% and Indusind Bank up by 1.44%. On the flip side, Bajaj Finance down by 2.52%, NTPC down by 0.96%, Hindustan Unilever down by 0.87%, Asian Paints down by 0.70% and Power Grid down by 0.46% were the top losers.

Meanwhile, in view of the massive surge in COVID-19 cases, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the central bank will continue to monitor the emerging COVID-19 situation and will deploy all resources and instruments at its command for citizens, business entities, and institutions beleaguered by the second wave.Das further noted that RBI will closely monitor the impact of the second wave of COVID-19 on macroeconomic and financial conditions, adding that CPI inflation is dubbed to 5.5 per cent in March '21 from 5.0 per cent in February, on the back of a pick-up in food and fuel inflation.

RBI Governor further said that localised and targeted containment measures are enabling businesses and households to adapt; hence, effect on aggregate demand is expected to be moderate in comparison to last year. He also saluted the contribution of health care workers, law enforcement and other frontline workers who have been battling the COVID-19 pandemic selflessly.

The CNX Nifty is currently trading at 14581.05, up by 84.55 points or 0.58% after trading in a range of 14506.60 and 14632.45. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 5.12%, UPL up by 3.34%, Dr. Reddys Lab up by 1.79%, Kotak Mahindra Bank up by 1.75% and Wipro up by 1.67%. On the flip side, Adani Ports down by 3.70%, Bajaj Finance down by 2.52%, SBI Life down by 0.96%, NTPC down by 0.87% and Hindustan Unilever down by 0.81% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 slipped 241.34 points or 0.83% to 28,812.63, Hang Seng decreased 139.16 points or 0.49% to 28,417.98, Taiwan Weighted dropped 90.34 points or 0.53% to 16,843.44 and Straits Times was down by 27.24 points or 0.86% to 3,151.89. On the flip side, Jakarta Composite was up by 12.09 points or 0.2% to 5,975.91.

European markets were trading higher, UK’s FTSE 100 increased 81.76 points or 1.18% to 7,004.93, France’s CAC increased 60.88 points or 0.97% to 6,312.63 and Germany’s DAX was up by 206.93 points or 1.39% to 15,063.41.