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Markets were continuing their jubilant mood in noon session on across-the-board buying by funds as well as retail investors. Sensex and Nifty were trading above 52,400 and 15,600 levels due to heavy buying in consumer durables, information technology and realty stocks. Gains in frontline blue chip stocks such as Titan Co, HCL Tech and SBI also helped to lift the markets. Sentiments were upbeat as commerce and industry minister Piyush Goyal said that the proposed free trade agreement with the European Union, when implemented, will provide greater market access for several domestic sectors such as textiles, leather and sports goods in the EU market. Additional support came as retirement fund body EPFO has added 17.08 lakh net new subscribers in April 2022, nearly 34 per cent more than 12.76 lakh enrolled in the same month a year ago. On the global front, Asian markets were trading mostly higher supported by technical buying as the global stocks witnessed worst correction since 2020.

The BSE Sensex is currently trading at 52422.62, up by 824.78 points or 1.60% after trading in a range of 51808.76 and 52486.05. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.72%, while Small cap index was up by 2.29%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 3.71%, IT up by 2.88%, Realty up by 2.69%, TECK up by 2.66% and Oil & Gas was up by 2.58%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Titan Co up by 6.08%, HCL Tech up by 3.32%, SBI up by 2.92%, TCS up by 2.88% and Dr. Reddy's Lab was up by 2.55%. On the flip side, Reliance Industries down by 0.07% was the only losers.

Meanwhile, rating agency ICRA in its latest report has said that auto ancillaries' revenues are expected to grow 8-10 per cent in 2022-23, supported by stable demand as well as the expected easing of supply-chain related issues in H2 FY2023. It said at the same time, the sector's coverage metrics is also likely to remain comfortable in 2022-23, benefitting from healthy accruals and relatively low incremental debt funding requirements.

According to the report, in last fiscal year, 31 auto component companies with cumulative revenues of over Rs 1,75,000 crore had registered a 23 per cent year-on-year growth in revenues, driven by domestic original equipment manufacturers (OEMs), replacement, export volumes and pass-through of commodity prices. It said though the growth came on a relatively low base of FY21, the actual revenue expansion was better than Icra's estimates, partly on account of better-than-expected exports and increase in realisations to pass on the impact of higher commodity inflation and freight costs.

Icra's estimation of operating margins for FY2022 had factored in operating leverage benefits. However, the unprecedented inflation in raw material costs and freight costs in H2 FY2022 (October-March) and inability to pass on the same completely and in a timely manner impacted the profit margins in previous fiscal year. Operating margins for the sample 31 auto component companies in FY2022 were the lowest in last five years. It also expects over the long-term, premiumisation of vehicles, focus on localisation, improved exports potential and EV opportunities, resulting in higher content per vehicle, would translate to healthy growth for auto component suppliers. 

The CNX Nifty is currently trading at 15602.30, up by 252.15 points or 1.64% after trading in a range of 15419.85 and 15617.65. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 6.18%, JSW Steel up by 3.80%, Tata Motors up by 3.58%, HCL Tech. up by 3.41% and Hindalco was up by 3.36%. On the flip side, Apollo Hospital down by 0.07% and Reliance Industries was down by 0.06% were the only losers.

Asian markets were trading mostly higher; KOSPI rose 17.90 points or 0.75% to 2,408.93, Nikkei 225 surged 475.09 points or 1.84% to 26,246.31, Jakarta Composite soared 40.35 points or 0.58% to 7,016.73, Straits Times advanced 24.73 points or 0.8% to 3,121.13, Taiwan Weighted strengthened 361.06 points or 2.35% to 15,728.64 and Hang Seng was up by 254.31 points or 1.2% to 21,418.22. On the flip side, Shanghai Composite was down by 23.45 points or 0.71% to 3,291.98.

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