IGI Logo

Indian stock markets added gains in afternoon session due to buying in IT, TECK and metal stocks. Buying in frontline stocks such as Ultratech Cement, Tech Mahindra and Bajaj Auto were aiding sentiment, while selling in Bajaj Finance, Bajaj Finserv and ONGC kept the gains in the markets in check. Some support came in as Prime Minister Narendra Modi and French President Emmanuel Macron discussed the positive outcomes of the recently concluded India-EU Leaders' Meeting. India and the European Union (EU) had on May 8 announced their decision to resume negotiations for a balanced and comprehensive trade agreement after a gap of eight years and unveiled an ambitious connectivity partnership. However, upside remain capped as Reserve Bank of India stated that the second wave of Covid-19 pandemic has triggered revision of growth projections for the current financial year with consensus gravitating towards its earlier forecast of 10.5 per cent.

On the global front, Asian markets were trading mixed as investors watched for signs of inflation and awaited U.S. economic data expected later in the day. Back home, in scrip specific developments, Balaji Telefilms surged on acquiring 55% stake in Ding Infinity and Newgen Software Technologies jumped on getting patent from Indian Patent Office-Government of India.

The BSE Sensex is currently trading at 51128.32, up by 110.80 points or 0.22% after trading in a range of 50917.59 and 51217.96. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.54%.

The top gaining sectoral indices on the BSE were IT up by 1.23%, TECK up by 1.03%, Metal up by 1.02%, Power up by 0.84% and Energy was up by 0.81%, while Realty down by 0.67% and Telecom was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.51%, Tech Mahindra up by 1.48%, Bajaj Auto up by 1.47%, TCS up by 1.44% and Kotak Mahindra Bank was up by 1.28%. On the flip side, Bajaj Finance down by 1.79%, Bajaj Finserv down by 1.30%, ONGC down by 0.79%, Hindustan Unilever down by 0.76% and HDFC Bank was down by 0.73% were the top losers.

Meanwhile, amid the second wave of COVID-19 pandemic, CII President Uday Kotak has ‘strongly’ recommended the government to consider another fiscal package to support the lower end of the society as well as small and medium businesses. He said the government could consider increasing the quantum of the credit guarantee scheme for providing collateral-free loans to small businesses from Rs 3 lakh crore to Rs 5 lakh crore. Last year, the government had announced the Rs 3-lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) as part of the Atmanirbhar Bharat package.

Kotak said the COVID 2.0 has turned out to be ‘very very damaging’ and has shaken the country, particularly in April and May. On the impact of the second wave of the pandemic on the GDP, Kotak said the initial feedback suggests that it was adversely impacting the economy and also the growth. As against the initial expectations of 11 per cent growth in the current fiscal on a lower base of the previous fiscal, Kotak said ‘It would be fair to say that it is likely to be probably less... it is likely to be less than 10 per cent. We have to watch the situation’.

Amid this background, he said ‘I would strongly recommend to the government to consider a fiscal package to support the lower end of the society and small and medium businesses. That can be through direct transfers, including through food and other measures on the one hand, and second schemes to support SMEs could be in the form of an additional package under the ECLGS scheme, which they did last year’.

The CNX Nifty is currently trading at 15341.15, up by 39.70 points or 0.26% after trading in a range of 15278.60 and 15365.10. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Wipro up by 1.92%, Hindalco up by 1.84%, Tata Motors up by 1.70%, Hero MotoCorp up by 1.66% and Ultratech Cement was up by 1.54%. On the flip side, Bajaj Finance down by 1.72%, Bajaj Finserv down by 1.17%, ONGC down by 0.93%, HDFC Bank down by 0.84% and Cipla was down by 0.76% were the top losers.

Asian markets were trading mixed; Taiwan Weighted dropped 42.08 points or 0.25% to 16,601.61, Nikkei 225 slipped 93.18 points or 0.33% to 28,549.01, Hang Seng decreased 85.42 points or 0.29% to 29,080.59 and KOSPI was down by 2.92 points or 0.09% to 3,165.51.

On the other side, Shanghai Composite gained 8.80 points or 0.24% to 3,602.16, Jakarta Composite soared 80.55 points or 1.39% to 5,896.39, Straits Times advanced 12.83 points or 0.41% to 3,158.92.

Above views are of the author and not of the website kindly read disclaimer