Bourses trade with traction in late afternoon session

The Indian benchmarks traded with traction in late afternoon session tracking a rebound in Asian markets. Gains across sectors pushed the market higher, with Realty and Metal being the biggest movers. Buoyant Mid-caps and Small-caps elevated over 1% gains on their respective front line stocks. Dr. Reddy's Lab was the biggest mover among the Sensex 30 stocks. Traders took support after bank credit grew by 10.82 per cent to Rs 120.46 lakh crore and deposits by 9.71 per cent to Rs 166.95 lakh crore in the fortnight ended May 6, 2022. In the fortnight ended May 7, 2021, bank advances stood at Rs 108.70 lakh crore and deposits at Rs 152.16 lakh crore. On the global front, all Asian markets and European markets were trading higher after China cut its five-year loan prime rate (LPR) by 15 basis points, a sharper cut than had been expected, to help cushion an economic slowdown. However, the one-year LPR that affects commercial borrowers was left unchanged.

The BSE Sensex is currently trading at 54206.69, up by 1414.46 points or 2.68% after trading in a range of 53403.29 and 54206.70. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.73%, while Small cap index was up by 1.89%.

The top gaining sectoral indices on the BSE were Realty up by 3.85%, Metal up by 3.60%, Healthcare up by 2.94%, Bankex up by 2.94% and Capital Goods was up by 2.81%

The top gainers on the Sensex were Dr. Reddy's Lab up by 9.36%, Nestle up by 4.69%, Tata Steel up by 3.92%, Larsen & Toubro up by 3.72% and Axis Bank up by 3.63%. On the flip side, Power Grid down by 0.57% was the top losers.

Meanwhile, credit ratings agency, India Ratings and Research (Ind-Ra) in its latest report has said that the 5% month-on-month (mom) decline in the domestic auto sales volumes (excluding CVs) in April 2022 was due to the fall in passenger vehicles (PV) and two-wheeler (2W) volumes, owing to supply-side constraints and a continued weak demand, respectively.

According to the report, there was also decline in production volumes, fell 4% mom in April 2022, although it was stable over year-on-year (yoy) basis. Exports fell 6% yoy against a higher base in April 2021.

Ind-Ra further noted that after recording four months of consecutive sequential growth, PV domestic sales fell 10% mom in April 2022, on account of decreased production levels (down 6% mom) due to the continuing semi-conductor chips shortage, which was also aggravated by the ongoing Russia-Ukraine war.

Besides, it said that the decline in the utility vehicle (UV) segment (down 4% mom) was lower than passenger cars (down 18% mom) as original equipment manufacturers continued to prioritise the production of higher-margin UVs over passenger cars, amid the shortage of semi-conductors.

The CNX Nifty is currently trading at 16218.00, up by 408.60 points or 2.58% after trading in a range of 16003.85 and 16225.05. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 9.26%, Tata Motors up by 5.03%, JSW Steel up by 4.97%, Nestle up by 4.69% and Cipla up by 4.49%. On the flip side, Shree Cement down by 1.37%, UPL down by 0.56% and Power Grid down by 0.48% were the top losers.

All Asian markets were trading higher, Hang Seng increased 596.56 points or 2.96% to 20,717.24, Nikkei 225 surged 336.19 points or 1.27% to 26,739.03, Taiwan Weighted strengthened 124.53 points or 0.78% to 16,144.85, Jakarta Composite soared 94.80 points or 1.39% to 6,918.14, Straits Times advanced 51.75 points or 1.62% to 3,242.46, Shanghai Composite gained 49.61 points or 1.6% to 3,146.57 and KOSPI was up by 46.95 points or 1.81% to 2,639.29.

European markets were trading higher, UK’s FTSE 100 increased 106.65 points or 1.46% to 7,409.39, France’s CAC increased 53.94 points or 0.86% to 6,326.65 and Germany’s DAX was up by 201.67 points or 1.45% to 14,083.97.