Markets keep rallying in noon deals

In the rock-solid session of trade, benchmark equity indices maintained their upward momentum in noon deals on account of buying in front line counters and taking cues from global counterparts. Series of tough sanctions by the US and other countries against Russia brought some relief among nervous investors. In another positive development, Chief Economic Advisor (CEA) V Anantha Nageswaran said that the Indian economy is now poised for recovery but high crude oil price is a cause for concern. He said the banking sector in the country is stable, capital is available and credit offtake is poised to take off.  On the global front, Asian markets were trading mostly higher driven by a rebound in US equities as more sanctions were announced against Russia for its actions in Ukraine. Back home, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 2551:700; while 111 shares remained unchanged. In scrip specific development, Apollo Hospitals Enterprises zoomed as NSE announced inclusion of the company in its benchmark Nifty50 index with effect from March 31, 2022.

The BSE Sensex is currently trading at 55932.68, up by 1402.77 points or 2.57% after trading in a range of 55299.28 and 56183.70. All 30 stocks advancing on the index.

The broader indices were trading in green; the BSE Mid cap index rose 3.88%, while Small cap index was up by 3.77%.

The top gaining sectoral indices on the BSE were Metal up by 5.71%, Realty up by 4.53%, Basic Materials up by 4.31%, Power up by 3.92% and Utilities was up by 3.79%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Tata Steel up by 5.96%, Indusind Bank up by 4.98%, Bajaj Finance up by 4.71%, Tech Mahindra up by 4.30% and Axis Bank was up by 4.15%, while there was no loser on the Sensex.

Meanwhile, Crisil Ratings has said that two-wheeler sales volume is likely to dip by 8-10 per cent this fiscal year due to factors like sluggish rural demand, low festive-season sales, higher prices, and deferred purchases as consumers eye electric vehicles. The decline in sales volume in the current financial year is expected on an already-low base after two consecutive years of decline -- at 13 per cent in fiscal 2021 and 18 per cent in fiscal 2020.

It highlighted that this is the first time in over a decade, when two-wheeler sales are declining for three successive fiscal years. It also said segment-wise, motorcycle volume, which accounts for two-thirds of the overall two-wheeler volumes, will see a drop of about 8-9 per cent this fiscal year.

It said ‘the second, third covid waves and delayed harvest impacted rural demand for two-wheelers this fiscal. Besides, higher vehicle and fuel prices also affected rural demand this fiscal, unlike last fiscal, when rural India was less impacted by the first covid wave’.

The CNX Nifty is currently trading at 16688.10, up by 440.15 points or 2.71% after trading in a range of 16478.30 and 16748.80. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 7.99%, Adani Ports up by 6.38%, Tata Steel up by 6.17%, Tata Consumer Products up by 5.09% and JSW Steel was up by 5.04%. On the flip side, Britannia Inds down by 0.61% and Nestle down was by 0.07% were the only losers.

Asian markets were trading mostly higher; Taiwan Weighted strengthened 57.63 points or 0.33% to 17,652.18, Shanghai Composite gained 12.98 points or 0.38% to 3,442.94, KOSPI rose 29.26 points or 1.1% to 2,678.06, Jakarta Composite soared 62.46 points or 0.92% to 6,880.28, Nikkei 225 surged 505.68 points or 1.95% to 26,476.50 and Straits Times was up by 19.07 points or 0.58% to 3,295.13. On the flip side, Hang Seng was down by 107.03 points or 0.47% to 22,794.53.