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Benchmarks trade higher as RBI keeps repo rate unchanged

Domestic bourses continued to trade in fine contour in afternoon trade on significant buying by funds and retail investors after Reserve Bank of India (RBI) left interest rates unchanged and maintained an accommodative stance to support economic growth. Sentiment also perked up as the International Monetary Fund (IMF) in its latest report has projected an impressive 12.5 percent growth rate for India in 2021, stronger than that of China, the only major economy to have a positive growth rate last year during the COVID-19 pandemic. On the global front, Asian markets were trading mixed as the market sentiments bolstered after IMF’s report forecasted strongest global expansion in four decades for this year.

Back home, all sectoral indices were trading firm at this point of time and Telecom was the top gainer on BSE, up by 2.20% followed by PSU and Bankex indices, trading up over 1.50%. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1790:961; while 200 shares remained unchanged.

The BSE Sensex is currently trading at 49774.86, up by 573.47 points or 1.17% after trading in a range of 49093.90 and 49836.22. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.56%, while Small cap index was up by 1.13%.

The top gaining sectoral indices on the BSE were Telecom up by 2.20%, PSU up by 1.78%, Bankex up by 1.71%, Energy up by 1.64%, Metal up by 1.45%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were SBI up by 2.92%, Power Grid up by 2.92%, Nestle up by 2.47%, Dr. Reddys Lab up by 2.46% and Bharti Airtel was up by 2.44%. On the flip side, TCS down by 0.21% was the only losers.

Meanwhile, Ratings agency ICRA in its latest report has said that India's domestic passenger traffic slipped to a 10-year low at an estimated 53.4 million in the just-concluded financial year (FY21). However, it said in the previous fiscal there were no passenger flight operations for almost two months due to the pandemic-induced lockdown. 

According to the report, during the financial year 2010-11, all domestic air operators together had flown a total of 53.8 million passengers on local routes. The domestic passenger traffic in March 2021 has been estimated at around 77-78 lakh, a marginal decline of about 1 per cent over February during which airlines had flown around 78.30 lakh passengers. For FY2021 (May 25, 2020 till March 31, 2021), domestic passenger traffic has been pegged at around 53.4 million, a year-on-year decline of about 62 per cent over the fiscal ended March 31, 2020, in line with ICRA's estimates.

The report further said domestic passenger traffic in March 2021 has been estimated at around 77-78 lakh, implying a flat growth on a y-o-y basis on a low base of March 2020 (which had witnessed a y-o-y decline of 33.1 per cent in domestic passenger traffic) as domestic travel was affected with effect from March 25. Domestic passenger traffic witnesses a flat year-on-year growth in March 2021 owing to low base and the recent spike in cases poses challenge for sector's recovery.

The CNX Nifty is currently trading at 14846.50, up by 163.00 points or 1.11% after trading in a range of 14649.85 and 14867.55. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 3.06%, JSW Steel up by 3.04%, SBI up by 2.94%, Bharti Airtel up by 2.48% and Dr. Reddys Lab was up by 2.44%. On the flip side, Adani Ports down by 2.21%, Tata Consumer Products down by 1.02% and TCS was down by 0.45% were the top losers.

Asian markets were trading mixed; Taiwan Weighted strengthened 75.49 points or 0.45% to 16,815.36, Jakarta Composite soared 6.89 points or 0.11% to 6,009.66, KOSPI rose 10.33 points or 0.33% to 3,137.41 and Nikkei 225 was up by 34.16 points or 0.12% to 29,730.79.

On the flip side; Hang Seng decreased 225.90 points or 0.78% to 28,712.84, Shanghai Composite declined 9.48 points or 0.27% to 3,473.49 and Straits Times was down by 10.96 points or 0.34% to 3,196.67.

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