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Despite initial hiccups, Indian equity bourses gained strength in afternoon session and were trading above 59100 (Sensex) and 17650 (Nifty) levels in noon deals. Traders took support after RBI governor gives clarifications on various questions related to economic indicators like GDP, Inflation etc. in press conference. Meanwhile, the RBI kept its key lending rate unchanged at 4.0 per cent, a record low, opting to support post-pandemic economy growth despite rising inflation due to the Russia-Ukraine war. The rate remained unchanged for the eleventh time in a row. The reverse repo rate also remained unchanged at 3.35 per cent. Sentiments were also upbeat as RBI Governor Bimal Jalan has said that the country’s economy is in good shape as India’s GDP growth rate and foreign exchange reserve are high. Notwithstanding economic uncertainties triggered by the Russia-Ukraine war that is also impacting the global supply chain, Jalan said it is not going to affect India’s economic performance. On the global front, Asian markets were trading mostly higher even as Wall Street struggled for direction amid caution around the Fed's plan for aggressive policy tightening and the war in Ukraine.

The BSE Sensex is currently trading at 59141.07, up by 106.12 points or 0.18% after trading in a range of 58876.36 and 59297.46. 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 0.87%, while Small cap index was up by 0.89%.

The top gaining sectoral indices on the BSE were Power up by 1.69%, Basic Materials up by 1.65%, Utilities up by 1.57%, Metal up by 1.50% and Oil & Gas was up by 1.37%, while IT was down by 0.01% was the only losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.47%, Dr. Reddy's Lab up by 1.41%, Ultratech Cement up by 1.35%, Tata Steel up by 1.23% and Reliance Industries was up by 1.04%. On the flip side, Tech Mahindra down by 1.38%, NTPC down by 1.30%, Maruti Suzuki down by 0.93%, HDFC Bank down by 0.73% and Sun Pharma was down by 0.65% were the top losers.

Meanwhile, Credit ratings agency ICRA in its latest report has said that the logistics sector is projected to record a growth of 7-9 per cent in the current fiscal (FY23) but the industry players' margins are likely to remain ‘sensitive to risks’ stemming from a continued rise in oil and commodity prices amid the Russia-Ukraine conflict. It also estimated that the sector's growth stood at around 14-17 per cent in 2021-22 over pre-COVID levels, adding that the momentum is expected to continue in this fiscal as well.

According to the report, revenue growth over the medium-term would continue to be driven by demand from varied segments such as e-commerce, FMCG, retail, chemicals, pharmaceuticals and industrial goods coupled with the industry's paradigm shift towards organized logistics players post GST and E-way bill implementation. Furthermore, it said that multi-modal offerings are likely to gain increased acceptance and traction going forward, given that players offering multi-modal services had more flexibility.

Given these factors and the relatively higher financial flexibility available to large organised players vis-a-vis their smaller counterparts, the report noted that there is potential for increased formalisation in the sector going forward. It said in the last few months, there has been a sustained improvement in freight movements aided by recovery in demand across industries, increased pace of vaccination and rapid abatement of the third wave, which allowed for quick lifting of restrictions, among others. However, it said that elevated commodity prices and firming freight rates are key near-term headwinds.

The CNX Nifty is currently trading at 17698.85, up by 59.30 points or 0.34% after trading in a range of 17600.55 and 17723.60. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 4.22%, Adani Ports  up by 2.83%, SBI Life Insurance up by 2.52%, JSW Steel up by 2.49% and Coal India was up by 1.94%. On the flip side, Cipla down by 2.48%, Tech Mahindra down by 1.33%, NTPC down by 1.21%, Maruti Suzuki down by 0.96% and Sun Pharma was down by 0.79% were the top losers.

Asian markets were trading mostly higher; Shanghai Composite gained 11.40 points or 0.35% to 3,248.10, Nikkei 225 surged 97.23 points or 0.36% to 26,985.80, KOSPI rose 6.26 points or 0.23% to 2,702.12, Taiwan Weighted strengthened 105.91 points or 0.62% to 17,284.54 and Jakarta Composite was up by 61.41 points or 0.86% to 7,188.78.

On the other hand, Hang Seng decreased 81.42 points or 0.37% to 21,727.56 and Straits Times was down by 25.76 points or 0.76% to 3,378.47.

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