Markets continue firm trade in morning deals

Indian equity benchmarks were holding on to their early gains in Friday's morning deals, tracking gains in index majors Reliance Industries, ONGC, Kotak Mahindra Bank and HDFC amid positive cues from global markets. Sentiments remained positive with the Reserve Bank stating that it will ensure that system-level liquidity remains comfortable during 2021-22 in alignment with the stance of monetary policy, and monetary transmission continues unimpeded while maintaining financial stability. Some support also came with a private report that the government is hopeful of a speedy launch of single-dose COVID-19 vaccine Sputnik Light in India and all stakeholders, including the Russian manufacturer and its Indian partners, have been directed to fast-track the application and regulatory approval procedures for the jab to boost the country's vaccination drive. Meanwhile, Foreign Institutional Investors (FII) turned net sellers on Thursday, pulling out Rs 660 crore from domestic markets. Domestic Institutional Investors (DII) were net buyers, pumping in Rs 112 crore into domestic equities.

On the global front, Asian markets were trading in green as investors bet the U.S. will lead the world out of the COVID-19 pandemic, with the focus turning to a multi-trillion dollar spending boost by the Biden administration. Back home, on the sectoral front, there will be some reaction in realty sector stocks as ratings agency Crisil said although the market is growing in 2021-22, a full recovery in the residential realty sector is expected only in 2024. According to it, the country’s housing market is expected to grow by 5-10 per cent in the current fiscal year.

The BSE Sensex is currently trading at 51431.17, up by 315.95 points or 0.62% after trading in a range of 51298.89 and 51477.05. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.33%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were Energy up by 2.71%, Metal up by 2.38%, Oil & Gas up by 1.33%, Basic Materials up by 0.97% and Telecom up by 0.81%, while Healthcare down by 0.53%, IT down by 0.30%, TECK down by 0.13% and Consumer Durables down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 3.55%, ONGC up by 1.57%, Kotak Mahindra Bank up by 1.36%, HDFC up by 1.16% and HDFC Bank up by 0.99%. On the flip side, Sun Pharma down by 3.54%, Dr. Reddys Lab down by 1.45%, Mahindra & Mahindra down by 1.21%, Nestle down by 0.63% and Titan Company down by 0.61% were the top losers.

Meanwhile, Amid uncertainties arising out of the second wave of COVID-19, Reserve Bank of India (RBI) in its annual report has said that a durable revival of private consumption and investment would be critical for sustaining economic growth post-pandemic. Typically, it said, post-crisis recoveries are led more by consumption than investment. However, it said investment-led recoveries can be more sustainable and can also lift consumption in parts by better job creation. In either case, private demand plays a pivotal role.

Observing that 2020-21 has left a scar on the economy, it said in the midst of the second wave as 2021-22 commences, pervasive despair is being lifted by cautious optimism built up by vaccination drives. The second wave of the pandemic has prompted revision of growth projections for the current fiscal and the consensus appears to be gravitating towards RBI's forecast of 10.5 per cent.  RBI cautioned that the pandemic is the biggest risk to this outlook. Yet, upsides also stem from the capex push by the government, rising capacity utilisation and the turnaround in capital goods imports.

The report further said that the waiver of compound interest on all loan accounts which opted for moratorium during March-August 2020 may put stress on the financial health of banks. However, the apex bank expressed confidence that banks are better positioned than before in managing stress in balance sheets in view of higher capital buffers, improvement in recoveries and a return to profitability.

The CNX Nifty is currently trading at 15431.80, up by 93.95 points or 0.61% after trading in a range of 15405.45 and 15455.55. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.43%, Tata Steel up by 2.97%, JSW Steel up by 2.66%, Coal India up by 1.90% and Hindalco up by 1.72%. On the flip side, Sun Pharma down by 3.49%, Dr. Reddys Lab down by 1.59%, Wipro down by 1.31%, Mahindra & Mahindra down by 1.18% and Titan Co down by 0.77% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 623.35 points or 2.18% to 29,172.36, Taiwan Weighted strengthened 261.02 points or 1.57% to 16,862.63, Straits Times advanced 19.94 points or 0.63% to 3,184.76, Shanghai Composite gained 0.18 points or 0% to 3,609.03, Jakarta Composite soared 1.78 points or 0.03% to 5,843.61, KOSPI rose 27.65 points or 0.87% to 3,193.16 and Hang Seng increased 183.98 points or 0.63% to 29,297.18.