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Domestic bourses continued to trade in fine contour in afternoon session as Asian peers continue to rise after bond yields further retreat easing concerns about rampant inflation. Traders remain energized as a private survey stated that India among world’s top 5 investment destinations. According to the survey, the United States has extended its lead over China as the top growth market that CEOs are looking to invest. Germany remains in the third spot. The United Kingdom has overtaken India to occupy the 4th spot after Brexit while India has managed to remain in the top 5 just ahead of Japan. On the sectoral front, insurance stocks were in focus as Cabinet cleared amendments to the Insurance Act to pave the way for raising the foreign direct investment (FDI) limit up to 74% from 49%, as proposed in the Budget for FY22. The amendments will have to be ratified by Parliament to take effect.

On the global front, Asian markets were trading mostly higher after U.S. President Joe Biden signed a $1.9 trillion stimulus bill into law, and after a dovish European Central Bank meeting prompted a retreat in bond yields and eased global concerns about rising inflation. Back home, among blue chip stocks, Power Grid was top gainer trading up by 2.49%, while Bajaj Auto was top loser down by 1.44%.

The BSE Sensex is currently trading at 51542.06, up by 262.55 points or 0.51% after trading in a range of 51527.47 and 51821.84. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.71%, while Small cap index was up by 0.99%.

The top gaining sectoral indices on the BSE were Utilities up by 1.98%, Power up by 1.65%, Capital Goods up by 1.36%, Telecom up by 1.36% and Consumer Durables was up by 1.25%, while Auto down by 0.51% and FMCG was down by 0.17% were the only losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.49%, Titan Company up by 2.01%, Larsen & Toubro up by 1.96%, Bajaj Finance up by 1.75% and Bajaj Finserv was up by 1.67%. On the flip side, Bajaj Auto down by 1.44%, Maruti Suzuki down by 1.33%, Dr. Reddys Lab down by 0.78%, Kotak Mahindra Bank down by 0.51% and Sun Pharma was down by 0.42% were the top losers.

Meanwhile, Crisil Ratings has said that the cement industry is set to hit a decadal high volume growth of 13 percent in FY22, helped by an expected revival in demand from the infrastructure and urban housing sectors. It also said the increased sales volume will counterweigh the impact of rising power and fuel costs on cash accruals and will keep the credit outlook of cement makers stable. It said while volume growth will rebound, higher cost of sales would weigh on cement profitability next fiscal.

According to the report, rising prices of raw materials such as diesel, pet coke or coal, and polypropylene bags may push up cost by Rs 150-200 per tonne. It also said freight, power and fuel constitute almost 55 percent of the total cost of sales of cement. It noted that increasing share of infrastructure and urban housing means a higher proportion of sales will be from the cost-conscious non-trade channels. That would translate to marginally lower net realisation for cement companies.

The report further said higher spends on infrastructure development would be in line with the 26 percent increase in budgetary allocation for infrastructure in the Union Budget 2021-22. That, coupled with pent-up demand in urban housing, will drive volume growth. It also said operating profits could moderate by Rs 200-250 per tonne next fiscal due to higher cost and lower net realisation. However, it said cash accruals won't be affected as higher volumes will offset the impact of lower profit margins.

The CNX Nifty is currently trading at 15247.95, up by 73.15 points or 0.48% after trading in a range of 15242.45 and 15336.30. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.14%, Indian Oil Corporation up by 2.98%, Power Grid up by 2.37%, Titan Company was up by 2.02% and Larsen & Toubro was up by 1.89%. On the flip side, SBI Life Insurance down by 1.64%, HDFC Life Insurance down by 1.55%, Bajaj Auto down by 1.39%, Maruti Suzuki down by 1.30% and Hero MotoCorp was down by 1.19% were the top losers.

Asian markets were trading mostly in green; Jakarta Composite soared 73.03 points or 1.17% to 6,337.71, Taiwan Weighted strengthened 75.62 points or 0.47% to 16,255.18, Shanghai Composite gained 7.01 points or 0.20% to 3,443.84, Nikkei 225 surged 506.19 points or 1.73% to 29,717.83 and KOSPI was up by 40.69 points or 1.35% to 3,054.39. On the flip side, Hang Seng decreased 241.18 points or 0.82% to 29,144.43 and Straits Times was down by 2.88 points or 0.09% to 3,103.13.

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