Indian equity benchmarks continued to trade in green terrain in afternoon deals, despite mixed cues from other Asian markets. Bajaj Auto emerged as a top gainer among major industry leaders on the BSE, while the broader indices garnered strong gains in noon deals. Heavy buying at Auto and Consumer Discretionary counters kept the Indian markets higher. Traders were seen taking support from reports that Finance Minister Nirmala Sitharaman will hold a review meeting with CEOs of public sector banks (PSBs) on Friday to discuss various issues, including credit offtake, as part of efforts to prop up the coronavirus-hit economy.
On the global front, Asian markets were trading mixed, after the manufacturing sector in Japan continued to contract in May, and at a faster pace, the latest survey from Jibun Bank revealed on Thursday with a manufacturing PMI score of 31.7. That's down from 34.7 in April and it moves further beneath the boom or bust line of 50 that separates expansion from contraction.
The BSE Sensex is currently trading at 31032.10, up by 213.49 points or 0.69% after trading in a range of 30765.32 and 31110.30. There were 19 stocks advancing against 10 stocks declining, while 1 stock remain unchanged on the index.
The broader indices were trading in green; the BSE Mid cap index rose1.27%, while Small cap index was up by 1.36%.
The top gaining sectoral indices on the BSE were Auto up by 2.27%, Consumer Disc up by 1.83%, Metal up by 1.70%, Bankex up by 1.17% and Basic Materials up by 1.03%, while Power down by 0.55%, Capital Goods down by 0.30% and Utilities down by 0.19% were the only losing indices on BSE.
The top gainers on the Sensex were Bajaj Auto up by 3.44%, Hero MotoCorp up by 3.25%, Asian Paints up by 2.81%, Maruti Suzuki up by 2.57% and ITC up by 2.19%. On the flip side, Larsen & Toubro down by 1.48%, NTPC down by 1.29%, Tech Mahindra down by 0.67%, ONGC down by 0.58% and Titan Co down by 0.55% were the top losers.
Meanwhile, domestic rating agency ICRA has warned of a deep recession as it drastically lowered FY21 growth forecast for India to minus 5 percent, citing the very modest fiscal support, extension of the nationwide lockdown and looming labour shortage. It also sharply revised downwards the growth contraction in Q1 to 25 percent as against the previous forecast of 16-20 percent and to minus 2.1 percent in Q2 from 2.1 percent growth previously, which implies a recession.
The agency said though the government has been claiming that its economic stimulus package is worth 10 percent of GDP or Rs 20.9 lakh crore, analysts have pegged it at just 0.8 - 1.2 percent of the GDP. It also said after the two phases of the nationwide lockdown, many experts warned of a minor contraction in growth. It also said but with the lockdown being extended to end-May, and expectation of substantial delays in getting the supply chains operational following the return of millions of migrant workers to their home states, Q1 degrowth will be deeper, and recovery will be shallower and more delayed than its earlier assessment.
However, the report stated that the economy may see a moderate 2.1 percent growth in Q3 as against previous estimate of 3.6 percent growth and 5 percent in Q4. The much-touted Rs 20.97 lakh crore package includes Rs 8.02 lakh crore monetary measures announced by the Reserve Bank since February as well as the Rs 1.93 lakh crore initially announced by the Centre and revenue foregone due to tax concessions. According to ICRA, these announcements are only enabling provisions to support a recovery after the lockdown by helping the most stressed sectors get working capital credit and none of these offer to absorb their losses from the lost output for more than two months.
The CNX Nifty is currently trading at 9131.00, up by 64.45 points or 0.71% after trading in a range of 9056.10 and 9151.60. There were 34 stocks advancing against 16 stocks declining on the index.
The top gainers on Nifty were Hindalco up by 3.56%, Bharti Infratel up by 3.44%, Hero MotoCorp up by 3.13%, Bajaj Auto up by 3.08% and Asian Paints up by 2.92%. On the flip side, Shree Cement down by 2.52%, Grasim Industries down by 1.54%, NTPC down by 1.51%, Larsen & Toubro down by 1.50% and Dr. Reddys Lab down by 1.32% were the top losers.
Asian markets were trading mixed; Straits Times rose 3.71 points or 0.14% to 2,565.65, Taiwan Weighted jumped 85.41 points or 0.78% to 10,993.21, KOSPI gained 8.85 points or 0.44% to 1,998.49 and Shanghai Composite inched up by 1.46 points or 0.05% to 2,885.20. On the other hand, Nikkei 225 declined 64.21 points or 0.31% to 20,530.94, Hang Seng slipped 2.66 points or 0.01% to 24,397.29 and Jakarta Composite was down by 2.71 points or 0.06% to 4,545.95.
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