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Domestic bourses Maintain Momentum

Domestic bourses continued to trade in fine contour in afternoon session, on account of broad based buying in blue chip counters amid positive Asian cues. Most of the sectoral indices were trading firm and capital goods was the top gainer on BSE, up by 2.97% followed by industrials and auto stocks, trading up over 2.50%. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 1% each. Sentiments were upbeat with S&P Global Rating’s statement that India's Budget for fiscal 2022 (ending March 31, 2022) represents a comprehensive effort by the Central government to shore up the country's nascent economic recovery. But the brawny spending programme also entails higher-than-expected general government deficits -- at more than 14 per cent of GDP this fiscal year and 11.6 per cent in fiscal 2022. Traders also remain energized with report that country's exports grew 5.37 per cent year-on-year to $27.24 billion in January 2021, mainly driven by healthy growth in pharmaceuticals and engineering sectors, according to provisional data of the commerce ministry. Meanwhile, Fitch Ratings states that the deficit targets presented in India's Budget are higher and medium-term consolidation more gradual than expected. The government's prioritisation of fiscal support for the population's health and well-being, and ongoing economic recovery are understandable.

On the global front, Asian markets were trading mostly higher on increased optimism about economic stimulus and global recovery. Back home, on the sectoral front, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1602:1126; while 182 shares remained unchanged.

The BSE Sensex is currently trading at 49601.62, up by 1001.01 points or 2.06% after trading in a range of 49193.26 and 50154.48. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.34%, while Small cap index was up by 1.21%.

The top gaining sectoral indices on the BSE were Capital Goods up by 2.97%, Industrials up by 2.95%, Auto up by 2.92%, Bankex up by 2.53% and Telecom was up by 2.28%, while Energy was down by 0.62% was the only losing index on BSE.

The top gainers on the Sensex were Ultratech Cement up by 6.26%, HDFC up by 5.96%, HDFC Bank up by 5.77%, Larsen & Toubro up by 4.04% and SBI was up by 3.31%. On the flip side, Bajaj Finserv down by 2.64%, Reliance Industries down by 1.34%, Hindustan Unilever down by 1.07%, Indusind Bank down by 1.06% and Dr. Reddys Lab was down by 0.60% were the top losers.

Meanwhile, owing to the reform measures undertaken by the government, the Union Budget document has said that the Indian economy is expected to rebound strongly in 2021-22. It further said that the real Gross Domestic Product (GDP) growth is projected to contract by 7.7 per cent in 2020-21 as compared to a growth of 4.2 per cent in 2019-20.

It pointed out that the government announced under the Aatmanirbhar Bharat mission a special economic and comprehensive package of Rs 20 lakh crore - equivalent to 10 per cent of India's GDP to fight the COVID-19 pandemic in India. It said ‘several structural reforms announced as part of the package, inter alia, include deregulation of the agricultural sector, change in definition of MSMEs, new PSU policy, commercialisation of coal mining, higher FDI limits in defence and space sector’.

According to the document, the Indian economy was negatively impacted by an unprecedented health crisis in 2020-21 with the highly contagious coronavirus spreading across the country. It also noted that monetary policy remained accommodative during 2020. The document said that merchandise exports (customs basis) during 2020-21 (April-December) were at $200.8 billion, which declined by 15.7 per cent over the level of $238.3 billion in the corresponding period of the previous year. Bank credit growth was 6.1 per cent as on December 18, 2020 as compared to 7.1 per cent in the corresponding period of the previous year.

The CNX Nifty is currently trading at 14584.20, up by 303.00 points or 2.12% after trading in a range of 14469.15 and 14731.70. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 10.19%, HDFC up by 6.31%, Ultratech Cement up by 6.17%, HDFC Bank up by 5.85% and Grasim Industries was up by 5.27%. On the flip side, Bajaj Finserv down by 2.90%, HDFC Life Insurance down by 2.87%, Hero MotoCorp down by 2.06%, Reliance Industries down by 1.42% and Hindustan Unilever was down by 1.08% were the top losers.

Asian markets were trading mostly higher, Nikkei 225 surged 271.12 points or 0.97% to 28,362.17, Hang Seng increased 440.65 points or 1.53% to 29,333.51, Taiwan Weighted strengthened 349.96 points or 2.27% to 15,760.05, KOSPI rose 40.28 points or 1.32% to 3,096.81, Shanghai Composite gained 27.03 points or 0.77% to 3,532.31 and Straits Times was up by 18.35 points or 0.63% to 2,914.67.

On the other hand; Jakarta Composite was down by 44.34 points or 0.73% to 6,023.21.

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