Markets continue to trade higher after Economic Survey gets tabled

Indian equity markets continued to trade higher in late afternoon session after Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 in Lok Sabha. The broader indices, the BSE Mid cap index and Small cap index were trading above a percent. Most of the sectoral indices were trading with healthy gains on the BSE. India VIX was up by 5.56%. Traders took support, as Government consumption is estimated to grow by a strong 7.6 percent surpassing pre-pandemic levels. Private consumption is also estimated to have improved significantly to recover 97 percent of corresponding pre-pandemic output level. This is supported by a sharp rebound in HFIs like IIP Consumer Durables. Sector wise, steel sector remained in focus, as World Steel Association (worldsteel) in its latest report has showed that India's crude steel production rose by nearly 18 per cent to 118 million tonne (MT) in 2021, while world leader China recorded a 3 per cent decline to 1032.8 MT.

On the global front, Asian markets were trading mostly in green following a big Wall Street gain at the start of a week when China, South Korea and Southeast Asian markets will close for the Lunar New Year holiday. European markets were trading higher as investors continue to monitor developments between Russia and Ukraine and oil hit its highest price in seven years.

The BSE Sensex is currently trading at 58167.89, up by 967.66 points or 1.69% after trading in a range of 57746.15 and 58257.63. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.86%, while Small cap index was up by 1.16%.

The top gaining sectoral indices on the BSE were Realty up by 3.12%, IT up by 2.99%, TECK up by 2.84%, Energy up by 2.53% and Consumer Durables was up by 2.52%.

The top gainers on the Sensex were Tech Mahindra up by 4.91%, Infosys up by 3.44%, Wipro up by 3.38%, SBI up by 3.25% and Reliance Industries up by 2.85%. On the flip side, Indusind Bank down by 3.28%, Kotak Mahindra Bank down by 1.72% and Hindustan Unilever down by 0.13% were the top losers.

Meanwhile, the World Steel Association (worldsteel) in its latest report has showed that India's crude steel production rose by nearly 18 per cent to 118 million tonne (MT) in 2021, while world leader China recorded a 3 per cent decline to 1032.8 MT.

According to the report, India, which is the second largest steel producing nation, had manufactured 100.3 MT steel in 2020 and China had produced 1064.7 MT of steel in the same year. The global industry body further said that total world crude steel production was 1,950.5 MT in 2021, a 3.7 per cent increase compared to 1880.4 MT in 2020.

The report also noted that in 2021, Japan produced 96.3 MT steel as against 83.2 MT in 2020. The United States' output was at 86 MT compared to 72.7MT a year ago. While Russia produced 76 MT steel, South Korea produced 70.6 MT, Turkey 40.4 MT, Germany 40.1 MT, Brazil 36 MT and Iran produced 28.5 MT steel in 2021.

The CNX Nifty is currently trading at 17379.30, up by 277.35 points or 1.62% after trading in a range of 17264.15 and 17410.00. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.96%, BPCL up by 3.95%, Wipro up by 3.43%, Infosys up by 3.40% and Tata Motors up by 3.12%. On the flip side, Indusind Bank down by 3.34%, Kotak Mahindra Bank down by 1.71%, UPL down by 1.13%, Coal India down by 0.43% and Hindustan Unilever down by 0.16% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 284.64 points or 1.07% to 27,001.98, Hang Seng increased 252.18 points or 1.07% to 23,802.26 and Straits Times was up by 3.26 points or 0.1% to 3,249.59. On the flip side, Jakarta Composite was down by 14.36 points or 0.22% to 6,631.15.

European markets were trading higher, UK’s FTSE 100 increased 19.49 points or 0.26% to 7,485.56, France’s CAC increased 44.99 points or 0.65% to 7,010.87 and Germany’s DAX was up by 164.13 points or 1.07% to 15,483.08.