Equity markets maintain upward momentum in late afternoon session

Indian equity markets maintained their upward momentum in late afternoon session, following gains in Realty, IT and TECK stocks amid positive global sentiment. The sentiment remained largely positive, as private report stated that India’s economy is likely to have grown 0.6-2.1 per cent in the fourth quarter of the fiscal year 2020-21 (Q4FY21), better than the government's prediction of a contraction. However, for the entire FY21, they see gross domestic product (GDP) contracting 7-8 per cent. The growth in Q4 is led by widespread recovery in volumes and also low base effect, while the full-year contraction is mainly on account of a lockdown last year, which shut the economy for months. Meanwhile, Apparel Export Promotion Council (AEPC) has urged the government to declare apparel exports as essential services and exempt the exporting units from lockdowns across India.

On the global front, Asian markets were trading mostly in green, as inflation worries ease, while vaccine and reopening optimism reinforce expectations for a strong global recovery. European markets were trading higher, as a host of central bank policymakers pledged to keep monetary policy loose despite recent signs of an uptick in inflation.

The BSE Sensex is currently trading at 51017.31, up by 379.78 points or 0.75% after trading in a range of 50620.45 and 51060.30. 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 0.03%, while Small cap index was up by 0.81%.

The top gaining sectoral indices on the BSE were Realty up by 2.60%, IT up by 1.61%, TECK up by 1.47%, Consumer Discretionary up by 0.91% and Auto was up by 0.70%, while Metal down by 1.93%, Power down by 1.77%, Utilities down by 1.36%, Basic Materials down by 0.26%, PSU down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.55%, Bajaj Finance up by 2.35%, Infosys up by 2.22%, Maruti Suzuki up by 1.86% and TCS up by 1.32%. On the flip side, Power Grid down by 2.66%, NTPC down by 1.06%, ONGC down by 1.00%, Dr. Reddys Lab down by 0.23% and Kotak Mahindra Bank down by 0.15% were the top losers.

Meanwhile, amid second wave of COVID-19, the Apparel Export Promotion Council (AEPC) has urged the government to declare apparel exports as essential services and exempt the exporting units from lockdowns across India.

AEPC noted that most of the apparel exports are season and fashion sensitive, and their salvage value becomes zero if the production and shipment are not done in time. AEPC Chairman A Sakthivel said that considering the perishable nature of the product, apparel exports should be seen as essential services.

Sakthivel further stated that many neighbouring and competing countries have already accorded apparel exports the status of essential services. He said the sector showed resilience in getting back on track after being badly hit in 2020 with huge export order cancellations, bankruptcies and labourers going back to native places.

The CNX Nifty is currently trading at 15302.45, up by 94.00 points or 0.62% after trading in a range of 15194.95 and 15314.70. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.49%, Grasim Industries up by 2.67%, Bajaj Finance up by 2.37%, Infosys up by 2.29% and Wipro up by 1.98%. On the flip side, Power Grid down by 2.68%, JSW Steel down by 2.26%, Hindalco down by 2.22%, Tata Steel down by 2.10% and NTPC down by 1.10% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 255.15 points or 0.88% to 29,166.01, Nikkei 225 surged 88.21 points or 0.31% to 28,642.19, Jakarta Composite soared 52.21 points or 0.91% to 5,815.84, Taiwan Weighted strengthened 48.02 points or 0.29% to 16,643.69 and Shanghai Composite was up by12.02 points or 0.34% to 3,593.36. On the flip side, KOSPI was down by 2.89 points or 0.09% to 3,168.43.

European markets were trading higher, UK’s FTSE 100 increased 15.56 points or 0.22% to 7,045.35, France’s CAC increased 18.34 points or 0.29% to 6,408.61 and Germany’s DAX was up by 24.03 points or 0.16% to 15,489.12.