Markets add gains in late afternoon session

Indian equity benchmarks extended their gains in late afternoon session, with the Sensex and Nifty gaining above 300 and 90 points, respectively. Among heavy-weights Titan Company, ONGC and Kotak Mahindra Bank exhibited a smart performance. Traders remained optimistic after Minister of State for Finance Anurag Thakur has said that Indian economy is resilient and will rebound in the times ahead based on consistent reforms that have ensured strong fundamentals through these difficult times. Meanwhile, Assocham has recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the Micro Small and Medium Enterprises (MSMEs) which are reeling under the severe impact of COVID-19.  As the states are in the process of easing lockdowns, it said the trade and industry would need all-around support to pick up their business thread again.

On the global front, Asian markets were trading mostly in green with focus on the upcoming release of key US jobs data, while traders were also trying to gauge when the Federal Reserve will begin reconsidering its ultra-loose monetary policies in light of a robust economic recovery. European markets were trading lower, as investors awaited U.S. economic data to gauge the future path of monetary policy, while rating actions and ex-dividend trading knocked UK shares lower.

The BSE Sensex is currently trading at 52,161.52, up by 312.04 points or 0.60% after trading in a range of 51942.20 and 52240.61. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.06%, while Small cap index was up by 1.29%.

The top gaining sectoral indices on the BSE were Realty up by 4.21%, Consumer Durables up by 3.83%, Oil & Gas up by 1.32%, Industrials up by 1.31% and Energy was up by 1.06%, while Auto down by 0.07% were the only losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 5.82%, ONGC up by 4.25%, Kotak Mahindra Bank up by 2.04%, Bajaj Finance up by 1.66% and Axis Bank up by 1.49%. On the flip side, Indusind Bank down by 1.62%, Bajaj Auto down by 1.06%, Mahindra & Mahindra down by 0.76%, HCL Tech down by 0.57% and Tech Mahindra down by 0.56% were the top losers.

Meanwhile, India’s service sector fell into contraction territory in the month of May, with the intensification of the COVID-19 crisis causing renewed declines in new business and output. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index fell to 46.4 in May from 54.0 in April. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also eased to 48.1 in May from 55.4 in April.

The report said that growth of new work intakes ground to a halt in May, with companies noting the first decline in sales since September 2020. Survey participants indicated that demand was dampened by the intensification of the COVID-19 crisis. International demand for Indian services also worsened, with new export business falling at the quickest rate in six months. The drop was attributed to international travel restrictions and business closures.

Besides, pandemic-related worries and falling sales led services companies to reduce workforce numbers again during May. The decline was modest, but the quickest in the current six-month sequence of job shedding. Further, amid reports of higher prices for a wide range of inputs and fuel, operating expenses at services firms continued to increase in May. The rate of inflation remained sharp and above its long-run average, despite slowing to the weakest since January.

The CNX Nifty is currently trading at 15,671.35, up by 95.15 points or 0.61% after trading in a range of 15611.00 and 15693.15. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 5.74%, ONGC up by 4.29%, Adani Ports up by 2.72%, Eicher Motors up by 2.62% and Kotak Mahindra Bank up by 1.91%. On the flip side, Indusind Bank down by 1.56%, Bajaj Auto down by 1.09%, Mahindra & Mahindra down by 0.77%, Wipro down by 0.76% and HCL Tech down by 0.64% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 111.97 points or 0.39% to 29,058.11, Taiwan Weighted strengthened 81.12 points or 0.47% to 17,246.16, Jakarta Composite soared 59.93 points or 0.99% to 6,091.51, KOSPI rose 23.20 points or 0.72% to 3,247.43 and Straits Times was up by 1.88 points or 0.06% to 3,162.92. On the flip side, Shanghai Composite declined 12.93 points or 0.36% to 3,584.21 and Hang Seng was down by 331.59 points or 1.13% to 28,966.03.

European markets were trading lower, UK’s FTSE 100 decreased 48.02 points or 0.68% to 7,059.98, France’s CAC decreased 4.86 points or 0.07% to 6,516.66 and Germany’s DAX was down by19.27 points or 0.12% to 15,583.44.