Markets trade in green with marginal gains

Indian equity benchmarks were trading higher with marginal gains in late morning session. Positive cues from other Asian markets helped key indices to trade in green terrain. However, volatility witnessed over the Dalal Street, as Industry chamber PHDCCI said imposition of partial lockdowns and curfews in many parts of the country, due to re-emergence of COVID-19 pandemic, has created incipient signs of economic slowdown in the coming months. It also said that the strong growth of GST collections may partly be attributed to the significant acceleration in input costs vis-a-vis increase in commodity prices.

Besides, amid concerns that the second COVID wave may derail the budding recovery in the economy and credit conditions, S&P Global Ratings has slashed India's GDP growth forecast for the current financial year (FY22) to 9.8 per cent. The US-based rating agency in March had a 11 per cent GDP growth forecast for India for the April 2021-March 2022 fiscal on account of a fast economic reopening and fiscal stimulus.

On the global front, Asian markets were trading mostly in green, after Singapore retail sales increased in March. The data from the Department of Statistics showed that retail sales rose 6.2 percent year-on-year in March, after a 5.3 percent growth in February. Motor vehicle sales accelerated 15.2 percent annually in March, after a 9.1 percent drop in the previous month.

The BSE Sensex is currently trading at 48711.70, up by 34.15 points or 0.07% after trading in a range of 48614.11 and 48898.68. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Metal up by 1.49%, Auto up by 1.39%, Oil & Gas up by 0.64%, Industrials up by 0.59% and Consumer Durables up by 0.59%, while Bankex down by 0.26% and Healthcare down by 0.12% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 2.75%, HDFC up by 1.34%, Maruti Suzuki up by 1.25%, Titan Co up by 0.79% and Nestle up by 0.74%. On the flip side, Asian Paints down by 1.17%, Indusind Bank down by 0.78%, SBI down by 0.69%, Ultratech Cement down by 0.68% and Axis Bank down by 0.66% were the top losers.

Meanwhile, amid concerns that the second COVID wave may derail the budding recovery in the economy and credit conditions, S&P Global Ratings has slashed India's GDP growth forecast for the current financial year (FY22) to 9.8 per cent. The US-based rating agency in March had a 11 per cent GDP growth forecast for India for the April 2021-March 2022 fiscal on account of a fast economic reopening and fiscal stimulus.

S&P, which currently has a 'BBB-' rating on India with a stable outlook, said the depth of the Indian economy's deceleration will determine the hit on its sovereign credit profile. The Indian government's fiscal position is already stretched. The general government deficit was about 14 per cent of GDP in fiscal 2021, with net debt stock of just over 90 per cent of GDP.

S&P Global Ratings Asia-Pacific chief economist Shaun Roache said ‘India's second wave has prompted us to reconsider our forecast of 11 per cent GDP growth this fiscal year. The timing of the peak in cases, and subsequent rate of decline, drive our considerations’. It said the projections assume that initial shocks to private consumption and investment filter through to the rest of the economy. For example, lower consumption will mean less hiring, lower wages, and a second hit to consumption.

The CNX Nifty is currently trading at 14641.25, up by 23.40 points or 0.16% after trading in a range of 14611.50 and 14697.45. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.74%, Tata Steel up by 2.84%, Bajaj Auto up by 2.64%, Eicher Motors up by 1.95% and Wipro up by 1.87%. On the flip side, Asian Paints down by 1.35%, Tata Consumer Products down by 1.14%, Shree Cement down by 1.04%, Indusind Bank down by 0.97% and UPL down by 0.97% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 512.59 points or 1.78% to 29,325.22, Straits Times rose 8.29 points or 0.26% to 3,161.88, Hang Seng added 48.91 points or 0.17% to 28,466.89, Taiwan Weighted gained 15.13 points or 0.09% to 16,858.57 and KOSPI advanced 9.28 points or 0.29% to 3,156.65. On the flip side, Jakarta Composite fell 10.33 points or 0.17% to 5,965.58 and Shanghai Composite was down by 7.74 points or 0.22% to 3,439.12.