Bourses continue to trade in high spirit

Indian equity benchmarks continued to trade in high spirit in afternoon session, on account of broad based buying in blue chip counters. Most of the sectoral indices were trading firm and Energy was the top gainer on BSE, up by around 3% followed by Realty and Metal indices, trading up over 1%. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 0.50% each. Sentiments were upbeat with Revenue Secretary Tarun Bajaj’s statement that Indian economy has not suffered as much this year amid the second wave of COVID-19 as compared to last year when there was complete lockdown. Traders seem to have over looked report that foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from Indian markets in May as second wave of the coronavirus pandemic.

On the global front, Asian markets were trading mixed after Japan reported weaker-than-expected growth in factory output and Chinese manufacturing growth was flat. Back on street, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1723:1343; while 191 shares remained unchanged.

The BSE Sensex is currently trading at 51784.86, up by 361.98 points or 0.70% after trading in a range of 51179.94 and 51816.46. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.53%, while Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were Energy up by 2.86%, Realty up by 1.84%, Metal up by 1.47%, Oil & Gas up by 1.43% and Telecom was up by 1.30%, while Auto down by 0.37% and IT was down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.09%, Reliance Industries up by 1.63%, ICICI Bank up by 1.62%, Bharti Airtel up by 1.40% and Asian Paints was up by 1.37%. On the flip side, Mahindra & Mahindra down by 5.68%, Sun Pharma down by 0.71%, Infosys down by 0.70%, Tech Mahindra down by 0.56% and HCL Tech was down by 0.49% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its latest report has said that bank credit growth decelerated to 5.6 percent in March 2021 from 6.4 percent a year ago. On the other hand, it said aggregate deposits growth accelerated to 12.3 per cent in March 2021 from 9.5 per cent in the same month of the previous year. It added that lower growth in credit vis-a-vis deposits led to decline in the all-India credit-deposit (C-D) ratio to 71.5 per cent in March 2021 from 76 per cent a year ago.

The central bank has stated that bank branches in urban, semi-urban and rural areas, on the other hand, recorded 9.4 per cent, 14.3 per cent and 14.5 per cent credit growth, respectively, during the year. Public sector and private sector banks recorded 3.6 per cent and 9.1 per cent credit growth, respectively, whereas lending by foreign banks declined during 2020-21. Metropolitan branches, which account for over half of total deposits, recorded nearly 15 per cent growth during 2020-21.

It further said that the share of current account and savings account (CASA) deposits in total deposits increased to 44.1 per cent in March 2021 from 42.1 per cent a year ago. The share of private sector banks in total deposits and credit by SCBs (Scheduled Commercial Banks) increased during 2020-21 at the cost of public sector banks.

The CNX Nifty is currently trading at 15531.05, up by 95.40 points or 0.62% after trading in a range of 15374.00 and 15541.10. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 3.78%, ITC up by 2.16%, ICICI Bank up by 1.97%, JSW Steel up by 1.70% and Bharti Airtel was up by 1.58%. On the flip side, Mahindra & Mahindra down by 4.39%, Adani Ports down by 1.34%, Larsen & Toubro down by 0.76%, Infosys down by 0.74% and Bajaj Auto was down by 0.73% were the top losers.

Asian markets were trading mixed; Jakarta Composite soared 56.28 points or 0.96% to 5,904.90, Taiwan Weighted strengthened 197.57 points or 1.17% to 17,068.43, KOSPI rose 15.19 points or 0.48% to 3,203.92 and Shanghai Composite was up by 4.92 points or 0.14% to 3,605.70.

On the flip side; Straits Times trembled 16.52 points or 0.52% to 3,161.98, Nikkei 225 slipped 289.33 points or 0.99% to 28,860.08 and Hang Seng was down by 171.85 points or 0.59% to 28,952.56.