Markets trade flat with positive bias in early deals

Indian equity benchmarks made slightly positive start on Wednesday tracking some gains in Asian peers, but failed to hold the gains and slipped below neutral lines. Now, the markets are trading flat with positive bias in early deals on account of buying in Realty, Healthcare and Consumer discretionary counters. Sentiments got some encouragement as the government begun assessing the impact of the second wave of infections on different sectors and may look at providing support at an appropriate time to segments requiring fiscal help, with the world's worst outbreak of COVID pandemic stalling a nascent economic recovery. However, slight rise in coronavirus cases kept upside in check. A day after recording less than 200,000 fresh Covid cases for the first time in 41 days, India's new infections on Wednesday again soared to 208,886. Deaths from the disease rose by 4,172. The country's total cases now stand at 27,156,382, while total fatalities are at 311,421. Adding some pessimism, an SBI research report 'Ecowrap' stated that the country's GDP is likely to grow at 1.3 percent in the fourth quarter of 2020-21 and may see a contraction of around 7.3 percent for the full financial year.

On the global front, most of the Asian markets were trading higher despite the slightly negative cues overnight from Wall Street, as a continued pullback in treasury yields reflects easing worries about inflation. However, traders are cautious and refraining from making major moves amid the continued surge in coronavirus cases in most markets in the region, particularly in India and Japan. The markets in Malaysia, Singapore and Indonesia are closed for Vesak Day.

Back home, Auto stocks were in focus as India Ratings and Research (Ind-Ra) said the second wave of the Covid-19 pandemic has interrupted the sales momentum recorded by the automobile industry in 3Q-4Q FY21. In scrip specific developments, Godawari Power and Ispat jumped as it posted a multifold jump in its March quarter consolidated net profit. Vardhman Textiles on reporting 22% year-on-year increase in consolidated revenues for the March quarter.

The BSE Sensex is currently trading at 50648.33, up by 10.80 points or 0.02% after trading in a range of 50620.45 and 50901.18. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.31%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were Realty up by 1.07%, Healthcare up by 0.60%, Consumer discretionary up by 0.49%, Consumer Durables up by 0.46%, Auto up by 0.37%, while Metal down by 1.85%, Power down by 1.69%, Utilities down by 1.16%, Bankex down by 0.50%, PSU down by 0.50% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Co up by 2.05%, Sun Pharma up by 1.19%, Larsen & Toubro up by 1.06%, Bajaj Finserv up by 0.86% and Mahindra & Mahindra up by 0.70%. On the flip side, Power Grid down by 1.72%, ICICI Bank down by 0.83%, HCL Technology down by 0.82%, Kotak Mahindra Bank down by 0.67% and NTPC down by 0.62% were the top losers.

Meanwhile, India Ratings and Research (Ind-Ra) said the second wave of the Covid-19 pandemic has interrupted the sales momentum recorded by the automobile industry in 3Q-4Q FY21. Accordingly, many original equipment manufacturers (OEMs) have advanced maintenance shutdowns to April and May on account of dampening consumer sentiments, closure of automotive dealerships, as well as supply-side constraints.

It said the domestic automobile industry's sales volume (excluding CVs) declined 30 per cent month-on-month in April 2021; the year-on-year numbers are not comparable due to the nationwide lockdown in April 2020.  The decline was mainly on account of the increasing number of Covid cases, resulting in state-wise lockdowns coming into effect during the latter part of the month.

It noted that personal vehicle and two-wheeler sales declined by 10 per cent and 34 per cent m-o-m, respectively, in April 2021, while three-wheeler sales declined by 57 per cent amid a further reduction in preference for shared mobility. Nevertheless, exports volumes continued the growth trend in April 2021, up 19 per cent m-o-m, mainly led by 21 per cent m-o-m growth in two-wheeler exports. It mentioned personal vehicle demand remained resilient in April 2021, and witnessed the least decline, benefitting from the increased consumer preference for personal mobility. The domestic personal vehicle market continues to see an increasing shift towards utility vehicles, which accounted for 42 per cent of domestic PV sales.

The CNX Nifty is currently trading at 15215.20, up by 6.75 points or 0.04% after trading in a range of 15194.95 and 15258.60. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 2.05%, Cipla up by 1.58%, UPL up by 1.54%, Grasim Industries up by 1.53% and SBI Life Insurance up by 1.35%. On the flip side, JSW Steel down by 2.65%, Power Grid down by 1.85%, Tata Steel down by 1.62%, Hindalco down by 1.19% and NTPC down by 0.97% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 102.18 points or 0.36% to 28,656.16, Hang Seng jumped 211.85 points or 0.73% to 29,122.71, Taiwan Weighted rose 11.28 points or 0.07% to 16,606.95 and Shanghai Composite was up by 10.34 points or 0.29% to 3,591.68, while KOSPI fell 6.96 points or 0.22% to 3,164.36.