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Indian equity benchmarks continued their firm trade in the afternoon session as global mood stabilised post favourable US Fed meet outcome. Federal Reserve kept its accommodative monetary policies and signaled that economic recovery was on track. Firm cues from other Asian markets too aided sentiments. Most of the Asian counterparts were trading higher with reports that the Chinese Securities regulator has stepped-in to assuage investor concerns over tech crackdown supported sentiment. Back home, investors’ remain energized as Chief Economic Adviser (CEA) K V Subramanian states that India is expected to hit a growth rate of 6.5-7 percent in 2022-23 and accelerate further to 8 percent in the subsequent years on the back of reforms undertaken by the government. Traders seem to have overlooked private report stating that the India’s retail and wholesale inflation will probably accelerate during the second half of this year. The wholesale price index is expected to continue to grow in double-digits, at 10.71% from a year during the July-September quarter, up from the previous forecast of 10.12%. Forecasts for gross domestic product were raised to a 9.2% expansion in the fiscal year ending March 2022, from the previous 9%, while the gross value added outlook edged down slightly to 9%.

In scrip specific development, Tatva Chintan Pharma Chem makes spectacular debut with 95% premium on the BSE. The company has debuted at Rs 2,111.80 on the BSE, up by 1028.80 points or 95.00% from its issue price of Rs 1083. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1973:1113; while 132 shares remained unchanged.

The BSE Sensex is currently trading at 52661.39, up by 217.68 points or 0.42% after trading in a range of 52561.39 and 52740.66. 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 0.26%, while Small cap index was up by 0.88%.

The top gaining sectoral indices on the BSE were Metal up by 4.73%, Basic Materials up by 2.24%, Realty up by 1.20%, IT up by 0.82% and Energy was up by 0.80%, while Power down by 0.53%, FMCG down by 0.45%, Utilities down by 0.19%, Oil & Gas down by 0.09% and Healthcare was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 5.34%, Bajaj Finserv up by 3.03%, HCL Tech up by 2.31%, Sun Pharma up by 1.95% and Reliance Industries was up by 1.23%. On the flip side, Power Grid down by 25.98%, Maruti Suzuki down by 1.99%, NTPC down by 1.16%, Bajaj Auto down by 0.95% and Nestle was down by 0.75% were the top losers.

Meanwhile, report of the department-related Parliamentary Standing Committee on Industry on the impact of COVID-19 pandemic on micro, small and medium enterprises (MSME) sector has observed that the stimulus package announced by the government for the revival of the pandemic-hit economy has been found to be inadequate, as the measures adopted were more of loan offering and long-term measures instead of improving the cash flow to generate demand as immediate relief

It has noted that in the process of economic recovery post-first wave of the pandemic, the second wave has even more vigorously ripped the economy particularly the MSME sector.It has recommended that the government should immediately come out with a larger economic package aimed at bolstering demand, investment, exports and employment generation to help the economy, including MSMEs to recover from the pandemic fall-out.

Expressing concern over the grim situation of small enterprises due to the COVID-19 pandemic, the committee has recommended that to ensure the survival of small enterprises, it is imperative for the government to provide them with much-needed liquidity support to keep their businesses running and generate job opportunities for the workforce. It said that a detailed study needs to be conducted to make an assessment of the actual losses suffered by the MSME sector so as to chalk out an effective plan for revival of the sector.

The CNX Nifty is currently trading at 15785.45, up by 76.05 points or 0.48% after trading in a range of 15737.80 and 15801.80. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 8.94%, Tata Steel up by 5.32%, JSW Steel up by 3.42%, Bajaj Finserv up by 2.99% and Tata Motors was up by 2.79%. On the flip side, Power Grid down by 26.02%, Maruti Suzuki down by 2.19%, Cipla down by 1.47%, NTPC down by 1.11% and Nestle was down by 0.97% were the top losers.

All Asian markets were trading firm; Shanghai Composite gained 52.89 points or 1.57% to 3,414.48, Taiwan Weighted strengthened 267.59 points or 1.56% to 17,402.81, Jakarta Composite soared 29.68 points or 0.49% to 6,118.20, Straits Times advanced 26.67 points or 0.85% to 3,168.42, Nikkei 225 surged 200.76 points or 0.73% to 27,782.42, Hang Seng increased 730.44 points or 2.87% to 26,204.32 and KOSPI was up by 5.79 points or 0.18% to 3,242.65.

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