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Indian bourses extended their gaining momentum and were trading by more than quarter a percent higher in afternoon session as risk sentiment improved on declining COVID-19 cases in India. An improved prospect of economic recovery led by sharp drop in daily caseload, ramping up vaccination process and phased withdrawal of restrictions imposed by states also added to the sentiments. Traders were also energized as India's exports grew by 52.39 per cent to $7.71 billion during the first week of this month on account of healthy growth in shipments in sectors including engineering, gems and jewellery and petroleum products. On the global front, Asian markets were trading mostly lower as traders focus firmly on the release of US inflation data later in the week, which could have a huge bearing on the Federal Reserve's plans for monetary policy, while the European Central Bank's latest meeting will also keenly watched.

Back on street, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 2155: 908; while 153 shares remained unchanged. Apart from blue chips, broader indices too equally participated in the rally with both mid and small cap indices trading up by over 1% each.

The BSE Sensex is currently trading at 52432.86, up by 157.29 points or 0.30% after trading in a range of 52204.99 and 52446.92. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.00%, while Small cap index was up by 1.04%.

The top gaining sectoral indices on the BSE were Utilities up by 3.14%, Power up by 2.99%, PSU up by 1.59%, Realty up by 1.02% and Metal was up by 0.94%, while Energy down by 0.14% and Auto was down by 0.03% were the only losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 3.76%, NTPC up by 3.40%, HCL Tech up by 1.86%, ONGC up by 1.28% and Indusind Bank was up by 1.07%. On the flip side, Maruti Suzuki down by 1.14%, Ultratech Cement down by 0.89%, Bajaj Auto down by 0.66%, Larsen & Toubro down by 0.62% and Reliance Industries was down by 0.49% were the top losers.

Meanwhile, with the help of higher growth in health and motor insurance segments, ICRA Ratings in a report said that the general insurance industry is likely to clock a 7-9 per cent growth in gross direct premium income (GDPI) in the financial year 2021-22. In 2020-21, the industry's total GDPI grew four per cent y-o-y to Rs 1.85 lakh crore. the report said while public sector insurance companies were slower to adjust to an online mode of growth, the reliance on physical meetings were higher which resulted in a two per cent y-o-y decline in business (Rs 71,800 crore in FY2021).

As per the report, the private sector companies reported an eight per cent y-o-y increase in gross direct premium income (GDPI) to Rs 1.13 lakh crore in the same period. The analysis is based on the performance of 17 general insurance companies collectively representing 90 per cent of the industry-wide gross direct premium written (GDPI) during the nine month of FY2021. Of the companies analysed, four are from the public sector and 13 from the private sector. The report said the private sector players had a higher growth trajectory in 2018-19 and 2019-20, and have gained market share from the PSU players.

Private sector players were able to adapt to the changing business dynamics in the calendar year 2020 at a faster pace compared to the PSU players. The agency said the private sector, with a relatively better risk framework, was able to increase the market share in the fire segment, and health segment. The sector also has a higher share in crop insurance underwritten in FY2021. The select private insurers (13 private players analysed) are expected to witness high single-digit business growth in FY2022. The agency also expects consolidation among the smaller players in the industry.

The CNX Nifty is currently trading at 15792.95, up by 52.85 points or 0.34% after trading in a range of 15723.10 and 15800.45. There were 36 stocks advancing against 13 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Power Grid up by 3.57%, NTPC up by 3.36%, Coal India up by 2.69%, SBI Life Insurance up by 2.46% and HCL Tech was up by 1.75%. On the flip side, Shree Cement down by 1.36%, Maruti Suzuki down by 1.15%, Ultratech Cement down by 0.96%, Larsen & Toubro down by 0.84% and Bajaj Auto was down by 0.78% were the top losers.

Asian markets were trading mostly lower; KOSPI fell 31.65 points or 0.97% to 3,216.18, Nikkei 225 slipped 102.76 points or 0.35% to 28,860.80, Straits Times trembled 10.80 points or 0.34% to 3,156.34, Taiwan Weighted dropped 109.99 points or 0.64% to 16,966.22 and Hang Seng was down by 69.86 points or 0.24% to 28,711.52.

On the flip side; Jakarta Composite soared 15.43 points or 0.26% to 6,014.80 and Shanghai Composite was up by 5.57 points or 0.16% to 3,585.68.

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