Equity markets add gains in late afternoon session

Indian equity markets extended their gains in late afternoon session on account of buying in front line counters. Traders were seen piling up positions in Metal, IT and TECK sectors. Traders remain energized, as credit rating agency ICRA in its latest report has said with decline in number of fresh COVID-19 cases and easing of restrictions, the country's gross domestic product (GDP) will grow at 8.5 percent in FY2021-22. It expects the gross value added (GVA) at basic prices (at constant 2011-12 prices) to grow at 7.3 per cent in FY2022. It also said if vaccine coverage is accelerated following the re-centralised procurement policy, the GDP expansion in FY2022 may be as high as 9.5 percent, with a widening upside in Q3 and Q4 of FY2022. Sector wise, agricultural sector remained in focus, as India’s export of agricultural and allied products in 2020-21 grew by 17.34 per cent to $41.25 billion, and this growth momentum is expected to be sustained in the current fiscal as well.

On the global front, Asian markets were trading mixed as investors looked past rising US consumer prices and focused on one off-factors which suggested higher inflation could be short-lived. European markets were trading higher buoyed by hopes that major central banks will remain accommodative despite signs of rising inflation, while a rally in miners boosted UK shares.

The BSE Sensex is currently trading at 52,523.95, up by 223.48 points or 0.43% after trading in a range of 52388.95 and 52641.53. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.09%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Metal up by 2.19%, IT up by 1.57%, TECK up by 1.32%, Energy up by 1.24% and Healthcare was up by 0.91%, while Realty down by 0.67%, Capital Goods down by 0.56%, Consumer Durables down by 0.38%, FMCG down by 0.30%, Bankex down by 0.29% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 3.50%, TCS up by 1.99%, HCL Tech up by 1.77%, Infosys up by 1.65% and Reliance Industries up by 1.63%. On the flip side, Larsen & Toubro down by 0.84%, Hindustan Unilever down by 0.77%, ICICI Bank down by 0.73%, Indusind Bank down by 0.64% and ITC down by 0.62% were the top losers.

Meanwhile, auto industry body, the Society of Indian Automobile Manufacturers (SIAM) in its latest report has showed that passenger vehicle wholesales in India declined by 66 per cent to 88,045 units in May as compared to 2,61,633 units in April this year as lockdowns across various states impacted dispatches to dealers.

As per the report, two-wheeler dispatches to dealers dropped by 65 per cent to 3,52,717 units, compared to 9,95,097 units in April, while motorcycle sales declined 56 per cent last month to 2,95,257 units, as against 6,67,841 units in April.

The report further noted that scooter sales were down 83 per cent to 50,294 units, from 3,00,462 units in April this year, while three-wheeler sales declined by 91 per cent to 1,251 units, as compared to 13,728 units in April.

The CNX Nifty is currently trading at 15,807.85, up by 70.10 points or 0.45% after trading in a range of 15749.80 and 15835.55. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Coal India up by 3.77%, Dr. Reddys Lab up by 3.46%, Tata Steel up by 2.20%, JSW Steel up by 1.98% and TCS up by 1.93%. On the flip side, Adani Ports down by 2.19%, SBI Life down by 1.00%, Indian Oil down by 0.95%, Larsen & Toubro down by 0.91% and Divis Lab down by 0.79% were the top losers.

Asian markets were trading mixed, Shanghai Composite declined 21.11 points or 0.58% to 3,589.75, Jakarta Composite lost 12.04 points or 0.2% to 6,095.50, Nikkei 225 slipped 9.83 points or 0.03% to 28,948.73 and Straits Times was down by 2.08 points or 0.07% to 3,160.42. On the flip side, KOSPI rose 24.68 points or 0.77% to 3,249.32, Taiwan Weighted strengthened 54.30 points or 0.32% to 17,213.52 and Hang Seng was up by 103.25 points or 0.36% to 28,842.13.

European markets were trading higher, UK’s FTSE 100 increased 36.25 points or 0.51% to 7,124.43, France’s CAC increased 27.52 points or 0.42% to 6,574.01 and Germany’s DAX was up by 12.60 points or 0.08% to 15,583.82.