Bourses continue to trade higher in late afternoon session

The Indian benchmarks continued to trade higher in late afternoon session, with the Sensex and Nifty gaining more than 400 and 125 points, respectively amid positive global cues. Meanwhile, the broader indices, the BSE Mid cap index and Small cap index were trading above a percent. Traders ignored private report that India's economic recovery from the COVID-19 pandemic likely stumbled again in the first quarter of this year primarily due to Omicron-related restrictions and higher inflation. On the global front, all Asian markets were trading higher after all three main U.S. indexes enjoyed a second day of gains overnight following strong earnings from retailers. European markets were trading higher heading for their best weekly advance since mid-March as investors returned to risk assets, lured by cheaper valuations.

The BSE Sensex is currently trading at 54,692.64, up by 440.11 points or 0.81% after trading in a range of 54449.34 and 54934.48. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.43%, while Small cap index was up by 1.27%.

The top gaining sectoral indices on the BSE were IT up by 2.23%, TECK up by 1.75%, Auto up by 1.52%, Bankex up by 1.44% and Capital Goods was up by 1.37%, while Oil & Gas down by 1.34%, Energy down by 1.01%, PSU down by 0.57%, Metal down by 0.52% and Utilities was down by 0.23% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.85%, Bajaj Finance up by 2.85%, Mahindra & Mahindra up by 2.82%, Indusind Bank up by 2.80% and Wipro up by 2.58%. On the flip side, NTPC down by 2.08%, Power Grid down by 1.12%, Asian Paints down by 0.93%, Bharti Airtel down by 0.92% and Tata Steel down by 0.89% were the top losers.

Meanwhile, credit rating agency, Moody's Investors Service in its update to Global Macro Outlook 2022-23 has lowered India's economic growth projection to 8.8 per cent for 2022 from 9.1 per cent earlier, citing high inflation. The rating agency however maintained its 2023 growth forecasts at 5.4 per cent.

As per the report, high-frequency data suggests that the growth momentum from December quarter 2021 carried through into the first four months this year. However, the rise in crude oil, food and fertilizer prices will weigh on household finances and spending in the months ahead.

The agency further noted that rate hike to prevent energy and food inflation from becoming more generalized will slow the demand recovery's momentum. Besides, Moody's said that but unless global crude oil and food prices rise further, the economy seems strong enough to maintain solid growth momentum.

The CNX Nifty is currently trading at 16,310.85, up by 140.70 points or 0.87% after trading in a range of 16221.95 and 16370.60. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 4.69%, Tech Mahindra up by 3.91%, HDFC Life Insurance up by 3.62%, Bajaj Finance up by 2.90% and Indusind Bank up by 2.80%. On the flip side, ONGC down by 5.53%, NTPC down by 2.04%, BPCL down by 1.28%, Power Grid down by 1.17% and JSW Steel down by 1.12% were the top losers.

All Asian markets were trading higher, Hang Seng increased 581.16 points or 2.89% to 20,697.36, Taiwan Weighted strengthened 297.39 points or 1.86% to 16,266.22, Nikkei 225 surged 176.84 points or 0.66% to 26,781.68, Jakarta Composite soared 142.76 points or 2.07% to 7,026.26, KOSPI rose 25.60 points or 0.98% to 2,638.05, Straits Times advanced 18.94 points or 0.59% to 3,228.12 and Shanghai Composite was up by 7.13 points or 0.23% to 3,130.24.

European markets were trading higher, UK’s FTSE 100 increased 11.96 points or 0.16% to 7,576.88, France’s CAC increased 53.32 points or 0.83% to 6,463.90 and Germany’s DAX was up by 94.97 points or 0.67% to 14,326.26.