Bourses recover from losses in late afternoon session

Indian markets recouped from losses and were trading higher in late afternoon session led by sustain gains in IT and Metal counters. Besides, positive cues from European markets also lent some support to markets. Traders fear faded over banking crisis after U.S. banks moved to rescue embattled First Republic Bank. Traders overlooked report that European Central Bank raised interest rates by a half-percentage point (0.5 or 50 basis points). The central bank also promised emergency support for eurozone banks if needed, showing the policymakers' balancing act as they seek to combat high inflation without aggravating strains in the financial system. On the global front, all Asian markets were trading higher after First Republic Bank was rescued by a group of major US lenders, which eased worries about the current banking turmoil. European markets were trading higher after Credit Suisse and First Republic Bank received financial help designed to prevent a crisis in the banking sector.

The BSE Sensex is currently trading at 57,881.49, up by 246.65 points or 0.43% after trading in a range of 57503.90 and 58178.94. There were 17 stocks advancing against 12 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index gained 0.30%, while Small cap index was up by 0.50%.

The top gaining sectoral indices on the BSE were Realty up by 2.24%, IT up by 1.56%, TECK up by 1.36%, Metal up by 1.27% and Utilities was up by 1.12%, while FMCG down by 0.54%, Auto down by 0.54% and Healthcare was down by 0.21% were the few losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 3.72%, Nestle up by 2.16%, Infosys up by 1.83%, Ultratech Cement up by 1.75% and Bharti Airtel up by 1.01%. On the flip side, ITC down by 2.23%, Sun Pharma down by 1.30%, Maruti Suzuki down by 1.27%, Asian Paints down by 0.74% and Hindustan Unilever down by 0.62% were the top losers.

Meanwhile, highlighting that Indian banking system is resilient and strong, Union Minister of State for Electronics & IT and Skill Development & Entrepreneurship, Rajeev Chandrasekhar has said that startups should therefore opt for Indian banks as their preferred banking partners.

Union Minister said ‘Today what is attractive about the banking system is not their appetite to take risk instead it is their prudency which makes them strong. What startups are looking for is not risk or risky instruments, instead they are looking for safe havens where capital can be deposited.

Besides, Rajeev Chandrasekhar also mentioned about the transfer of bank deposits worth over $200 million to GIFT City, Gujarat - a sign of the Indian banking system’s growing prominence. He also noted that special provisions available at Gift City can be a quick and impactful support for the Indian startups.

The CNX Nifty is currently trading at 17,063.20, up by 80.40 points or 0.47% after trading in a range of 16958.15 and 17145.80. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 3.61%, Nestle up by 2.09%, UPL up by 2.03%, HDFC Life Insurance up by 2.00% and Infosys up by 1.98%. On the flip side, Eicher Motors down by 2.46%, ITC down by 2.22%, Sun Pharma down by 1.31%, Maruti Suzuki down by 1.26% and Hero MotoCorp down by 1.06% were the top losers.

All Asian markets were trading higher, Nikkei 225 surged 323.18 points or 1.18% to 27,333.79, Hang Seng advanced 314.68 points or 1.61% to 19,518.59, Taiwan Weighted added 231.84 points or 1.5% to 15,452.96, Jakarta Composite gained 112.51 points or 1.68% to 6,678.24, Shanghai Composite strengthened 23.66 points or 0.73% to 3,250.55, Straits Times rose 22.3 points or 0.71% to 3,177.84 and KOSPI was up by 17.78 points or 0.74% to 2,395.69.

European markets were trading higher, UK’s FTSE 100 increased 79.04 points or 1.07% to 7,489.07, France’s CAC rose 49.94 points or 0.71% to 7,075.66 and Germany’s DAX was up by 125.83 points or 0.84% to 15,092.93.