Mirroring other Asian markets, Indian equity markets maintained their upward momentum in the afternoon session, following gains in Energy, Healthcare and Realty stocks. Healthy buying was observed in blue-chip stocks like Bajaj Finance, Reliance Industries and Tech Mahindra. Sentiments were upbeat as Finance Ministry said it has released third monthly instalment of revenue deficit grant of Rs 9,871 crore to 17 states. With the release of this instalment, total Rs 29,613 crore has been released in the first three months of the current financial year as Post Devolution Revenue Deficit (PDRD) Grant to states. On the global front, Asian markets were trading firm as investors focused on U.S. inflation data and the risk of an upside surprise that could prompt the Federal Reserve to start tapering its massive stimulus.
Back home, on the sectoral front, auto stocks were in focus as automobile retail sales crashed 55 percent in May compared to April as the COVID-19 lockdowns imposed across several states crippled vehicle offtake. Total vehicle retails (including tractors) during May fell to 535,855 units from 1.18 million units sold in April, as per data shared by the Federation of Automobile Dealer Association (FADA).
The BSE Sensex is currently trading at 52225.91, up by 284.27 points or 0.55% after trading in a range of 51957.92 and 52281.08. There were 22 stocks advancing against 8 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index rose 0.95%, while Small cap index was up by 1.58%.
The top gaining sectoral indices on the BSE were Energy up by 1.65%, Healthcare up by 1.46%, Realty up by 1.23%, Metal up by 1.09% and Utilities was up by 1.08%, while there were no losers on the BSE sectoral front
The top gainers on the Sensex were Bajaj Finance up by 3.54%, Reliance Industries up by 1.95%, Tech Mahindra up by 1.82%, SBI up by 1.46% and Bajaj Finserv was up by 1.40%. On the flip side, ITC down by 1.22%, Bajaj Auto down by 1.03%, Maruti Suzuki down by 0.35%, Asian Paints down by 0.31% and ICICI Bank was down by 0.20% were the top losers.
Meanwhile, the finance ministry in its monthly economic report said that quickening the pace and coverage of vaccination of people against COVID is critical for regaining growth momentum as economic activities are inextricably linked to the path of the pandemic. It said ‘As we cautiously recuperate from the second wave, rapidly improving vaccination delivery and frontloading the fiscal measures planned in the Union Budget hold key to invigorating the investment cycle in the coming quarters’.
Regarding the impact of the second COVID wave, the report said that with state-level lockdown restrictions being more adaptive to learnings from the first wave, manufacturing and construction are expected to experience a softer economic shock in the current quarter. The report emphasised that quickening the pace and coverage of vaccination is critical to help India heal and regain the momentum of economic recovery. It said continued vigilance in terms of pandemic preparedness, upscaling health spending and health infrastructure, faster rollout of vaccines and vaccination, investing in research and development to guard against possible mutants of the virus, prudent and pre-emptive restrictions, and strict observance of COVID-appropriate behaviour are essential to maintain the delicate balance of lives and livelihoods.
The report also noted that the country witnessed a V-shaped economic recovery in the second half of 2020-21. According to the report, India is one of the select few economies that have witnessed positive YoY (Year-on-Year) growth in the last two consecutive quarters. India’s real GDP is estimated to have grown at 0.5 per cent in Q3 and 1.6 per cent in Q4 of FY 2020-21 leading to an upward revision in annual real GDP growth from (-)8 per cent (2nd Advance Estimates) to (-)7.3 per cent in FY 2020-21. With a strong policy focus on infrastructure spending and construction in the latter half of FY 2020-21, the ratio of Gross Fixed Capital Formation (GFCF) to GDP reached 34.3 per cent, among the highest in over twenty-six quarters.
The CNX Nifty is currently trading at 15728.00, up by 92.65 points or 0.59% after trading in a range of 15648.50 and 15741.25. There were 37 stocks advancing against 13 stocks declining on the index.
The top gainers on Nifty were Bajaj Finance up by 3.71%, Divis Lab up by 3.17%, Wipro up by 1.94%, Reliance Industries up by 1.93% and JSW Steel was up by 1.84%. On the flip side, ITC down by 1.27%, Bajaj Auto down by 1.07%, UPL down by 0.67%, Eicher Motors down by 0.66% and Adani Ports was down by 0.48% were the top losers.
Asian markets were trading firm; KOSPI rose 8.46 points or 0.26% to 3,224.64, Nikkei 225 surged 97.76 points or 0.34% to 28,958.56, Straits Times advanced 10.91 points or 0.35% to 3,164.38, Taiwan Weighted strengthened 193.00 points or 1.14% to 17,159.22, Hang Seng increased 60.24 points or 0.21% to 28,802.87, Jakarta Composite soared 51.30 points or 0.85% to 6,098.78 and Shanghai Composite was up by 20.07 points or 0.56% to 3,611.47.
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