Domestic indices trade firm in early deals; WPI data eyed

Indian equity benchmarks made optimistic start on Monday ahead of the Wholesale Price Index-based inflation data to be announced later in the day. Markets are trading firm with gains of over half a percent each in early deals on account of buying in Bankex, Realty and Power counters. Sentiments got a boost with the government data showing that India's exports in April jumped nearly three-fold to $30.63 billion from $10.36 billion in the same month last year. Imports too rose to $45.72 billion last month as against $17.12 billion in April 2020. Traders took note of report that the average of daily cases has fallen for seven days in a row with India reporting 281,860 new cases in the last 24 hours. This is the first time since April 21 that India has recorded new cases below the 300,000 mark. However, market participants largely overlooked Care ratings’ latest survey stating that amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and the country's GDP growth is likely to be below nine per cent for the current fiscal.

On the global front, Asian markets were trading mixed with broadly positive cues from Wall Street on Friday. Traders continue to be concerned as restrictions and lockdowns are imposed in several markets in the region amid the ongoing surge in daily coronavirus cases in the region, particularly in Japan and India. Some traders continue to pick up stocks at reduced levels after recent sell-off. Back home, power stocks were in focus as the power ministry data showed that power consumption in the country grew by around 19 per cent in the first fortnight of May to 51.67 billion units (BU) over the same period last year, showing recovery in industrial and commercial demand of electricity. In scrip specific development, Bharti Airtel is in limelight ahead of its Q4 results to be out later in the day. Quick Heal Technologies gained as its consolidated net profit grew manifold to Rs 39.7 crore in the March 2021 quarter.

The BSE Sensex is currently trading at 49019.96, up by 287.41 points or 0.59% after trading in a range of 48923.13 and 49061.58. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.69%, while Small cap index was up by 0.86%.

The top gaining sectoral indices on the BSE were Bankex up by 1.56%, Realty up by 1.03%, Power up by 0.86%, PSU up by 0.68%, Auto up by 0.66%, while Telecom down by 0.91%, Consumer Durables down by 0.60%, Capital Goods down by 0.42%, Metal down by 0.28%, TECK down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.38%, SBI up by 2.12%, Bajaj Finserv up by 2.05%, ICICI Bank up by 1.80% and Bajaj Finance up by 1.64%. On the flip side, Larsen & Toubro down by 2.35%, Bharti Airtel down by 1.18%, NTPC down by 0.99%, Tech Mahindra down by 0.84% and Titan Company down by 0.78% were the top losers.

Meanwhile, Care Ratings in its latest survey has said amid a raging second wave of COVID-19 and subsequent restrictions on business activities imposed by several states, economic recovery is beginning to lose steam and India’s GDP growth is likely to be below nine per cent for the current fiscal (FY22). It said at least 80 per cent of the respondents expect consumer demand for non-essential items as well as investment to be severely impacted due to the current COVID situation.

It mentioned ‘the economic recovery is beginning to lose steam with infection rates scaling record highs. Almost seven out of 10 respondents expect GDP (growth) to be below nine per cent for FY22.’ According to the survey, the majority of respondents expect the lockdown announced by several states will stay till May-end.

Altogether, 54 per cent of the people, who participated in the survey, believe that the lockdown is a solution to the current COVID-19 situation in the country. It added little more than three-fourth of the respondents feel that the current lockdown is not as stringent as the restrictions imposed last year.

The CNX Nifty is currently trading at 14760.15, up by 82.35 points or 0.56% after trading in a range of 14725.35 and 14774.20. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.76%, Indusind Bank up by 2.45%, SBI up by 2.14%, Adani Ports & SEZ up by 1.99% and Bajaj Finserv up by 1.99%. On the flip side, Cipla down by 2.67%, Larsen & Toubro down by 2.30%, Bharti Airtel down by 1.14%, NTPC down by 1.08% and Tata Steel down by 0.94% were the top losers.

Asian markets were trading mixed; Nikkei 225 slipped 375.43 points or 1.34% to 27,709.04, Taiwan Weighted declined 421.10 points or 2.66% to 15,405.99, KOSPI lost 29.68 points or 0.94% to 3,123.64 and Jakarta Composite plunged 60.15 points or 1.01% to 5,878.20. On the other hand, Straits Times rose 1.73 points or 0.06% to 3,056.75, Hang Seng jumped 117.35 points or 0.42% to 28,144.92 and Shanghai Composite was up by 35.71 points or 1.02% to 3,526.09.