Bourses trade at day's high points in late afternoon session

Indian equity markets traded at day's high points in late afternoon session. Both Sensex and Nifty were trading above their crucial 57,850 and 17,200 marks, respectively. India VIX was 6.81% in the red. The broader indices were also witnessing buying interest as BSE Mid cap index and Small cap index traded above a percent. The overall market breadth was extremely positive as 2355 shares were advancing while 888 were declining on the BSE. Among heavy-weights Axis Bank, ICICI Bank and Tata Steel exhibited a smart performance. Traders remain energized, as Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-Covid levels. On the global front, all Asian markets were trading higher and European markets were trading higher as fears surrounding the Omicron variant eased.

The BSE Sensex is currently trading at 57,894.40, up by 1147.26 points or 2.02% after trading in a range of 56992.27 and 57883.80. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.41%, while Small cap index was up by 1.12%.

The top gaining sectoral indices on the BSE were Metal up by 3.15%, Bankex up by 2.94%, Realty up by 2.56%, Basic Materials up by 2.11% and PSU was up by 2.05%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were ICICI Bank up by 4.29%, Axis Bank up by 3.87%, Tata Steel up by 3.61%, Kotak Mahindra Bank up by 3.31% and Bajaj Finance up by 2.92%. On the flip side, Asian Paints down by 0.15% and Dr. Reddy's Lab down by 0.05% were the only losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the strong initial public offering (IPO) issuances in FY22 in the Indian buoyant stock market bode well with the country’s economic recovery.

According to the report, equity raising by entities will not have a meaningful impact on their debt levels, as the objective of raising funds is largely to do with unlocking the value proposition rather than creating new investments. Overall issuances have reached a significant level after FY18 in terms of issue size, with four months still left in the financial year.

Credit rating agency further noted that enormous worldwide liquidity owing to the culmination of fiscal and monetary expansion, strong investor appetite, favourable financial market conditions and a sharp recovery in business conditions have uplifted the IPO market in FY22.

Besides, Ind-Ra said that few auto component players have also resorted to IPO issuances in FY22 after a consecutive five years of absence, to fund working capital requirements and repayment of borrowings. It said that within healthcare industry, major issues have been undertaken so as to take up capex activities and reduce borrowings.

The CNX Nifty is currently trading at 17248.80, up by 336.55 points or 1.99% after trading in a range of 16987.75 and 17250.05. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.98%, ICICI Bank up by 4.33%, Axis Bank up by 4.05%, Tata Steel up by 3.58% and Adani Ports up by 3.41%. On the flip side, Cipla down by 0.45%, Divi's Lab down by 0.28%, Britannia down by 0.23% and Asian Paints down by 0.15% were the only losers.

All Asian markets were trading higher, Hang Seng increased 634.28 points or 2.72% to 23,983.66, Nikkei 225 surged 528.23 points or 1.89% to 28,455.60, Taiwan Weighted strengthened 108.71 points or 0.61% to 17,796.92, Jakarta Composite soared 55.45 points or 0.85% to 6,602.57, KOSPI rose 18.47 points or 0.62% to 2,991.72, Straits Times advanced 17.14 points or 0.55% to 3,133.46 and Shanghai Composite was up by 5.78 points or 0.16% to 3,595.09.

European markets were trading higher; UK’s FTSE 100 increased 73.21 points or 1.01% to 7,305.49, France’s CAC increased 120.48 points or 1.75% to 6,986.26 and Germany’s DAX was up by 237.30 points or 1.54% to 15,618.09.