Domestic indices trade firm in early deals; Nifty above 17,150 mark

Indian equity benchmark indices made optimistic start on Tuesday, after two-day sell-off, as global markets reversed losses and oil prices continued retreat. Domestic indices are trading firm in early deals with gains of over a percent each on account of board based buying in all the sector indices led by Power, Realty and Auto, which gained over 2% each. Sentiments got a boost with CII President TV Narendran’s statement that India’s economy is expected to grow 7.5-8 per cent this fiscal year with exports playing a key role in the country’s success story. Some optimism came in with report that India and the EU will return to the negotiating table to start serious talks for a free trade agreement (FTA) in June after a gap of nine years. Traders took note of a private report that the government has begun discussions on bringing parity between long-term capital gains (LTCG) tax on debt, listed equities and unlisted equities. Meanwhile, another private report stated that the Reserve Bank of India will raise its repo rate in June and hike at a faster pace than predicted just a few weeks ago as a surge in inflation puts pressure on the central bank to act quicker.

Most of the Asian markets are trading higher following the broadly positive cues from Wall Street overnight, as traders indulged in bargain hunting after the recent sharp sell-off. They also remain cautious on concerns about global economic growth amid a surge in Covid-19 cases and related shutdowns in China. Back home, edible oil industry stocks were in focus with private report that the top global palm oil producer Indonesia’s plan to halt the export of the commodity from April 28 is heating up edible oil prices in the country. In scrip specific development, Mahindra CIE Automotive rose on reporting strong Q1 results. The company posted a 18.22 per cent YOY growth in revenues at Rs 2,588.36 crore. The net profit was up nearly 16-fold at Rs 161.43 crore. Besides, Campus Activewear’s Rs 1,400 crore IPO (Initial public offering) will open for subscription today.

The BSE Sensex is currently trading at 57314.00, up by 734.11 points or 1.30% after trading in a range of 57066.24 and 57333.49. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.49%, while Small cap index was up by 1.19%.

The top gaining sectoral indices on the BSE were Power up by 2.17%, Realty up by 2.12%, Auto up by 2.10%, Utilities up by 2.08%, FMCG up by 1.84%, while there was no loser on BSE sectoral front.

The top gainers on the Sensex were Indusind Bank up by 3.26%, Mahindra & Mahindra up by 3.19%, Sun Pharma up by 2.43%, Hindustan Unilever up by 2.18% and Bajaj Finance up by 2.08%. On the flip side, Asian Paints down by 0.35% was the sole loser.

Meanwhile, expressing optimism over India’s economic growth, the Confederation of Indian Industry’s (CII) President TV Narendran has said that the country’s economy is likely to grow 7.5-8 per cent this fiscal year (FY23) with exports playing a key role in the country’s success story. Though, he also said India needs to remain prepared for any fallout of next wave of COVID-19 pandemic, and the impact of the ongoing Russia-Ukraine war. He added ‘We are confident that the economy can retain a high growth trajectory this year. So, we are very optimistic on the export front. Exports will be a key component of India’s success story going forward’.

The President of the industry body said the resurgence of COVID globally will have an impact on the global supply chain and CII’s India economic growth estimate of 7.5-8 per cent in the current fiscal factors these developments. He said ‘the experience with COVID shows that every time there is a fresh wave globally, it does hit India as well. Therefore, we must be prepared for the future waves’. According to him, the industry has in place well defined safety protocols and has really moved up the learning curve in managing COVID and in its ability to continue to operate safely even as infections rise.

Narendran said ‘therefore, in our view we are much better prepared to deal with the next wave. In terms of immediate action, administration of precautionary dose and the vaccination of below 18 years could be expedited. People need to be reminded of the importance of COVID appropriate behaviour and hence reminder campaigns are important’. He said in the past the strategy of micro-containment has worked well for India, adding that the industry body does not anticipate a scenario of re-imposition of major lockdowns. He noted ‘the widely accepted principle of managing COVID globally is to learn to live with it, rather than go in for strict lockdowns’.

The CNX Nifty is currently trading at 17162.55, up by 208.60 points or 1.23% after trading in a range of 17110.30 and 17181.85. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.32%, Bajaj Auto up by 3.28%, Mahindra & Mahindra up by 2.93%, Tata Motors up by 2.52% and Hero MotoCorp up by 2.51%. On the flip side, ONGC down by 0.65%, Asian Paints down by 0.59% and Hindalco down by 0.08% were the few losers.

Asian markets are trading mostly in green; Nikkei 225 surged 214.80 points or 0.81% to 26,805.58, Hang Seng jumped 362.69 points or 1.83% to 20,232.03, Taiwan Weighted rose 57.36 points or 0.35% to 16,678.26, KOSPI added 15.51 points or 0.58% to 2,672.64 and Shanghai Composite edged up by 27.42 points or 0.94% to 2,955.93. On the other hand, Straits Times fell 10.09 points or 0.30% to 3,329.50 and Jakarta Composite was down by 24.83 points or 0.34% to 7,191.15.