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Markets pared some initial gains but continued to trade in green in noon session amid buying in blue chip stocks from across various sectors. Selling pressure in Realty, PSU and Telecom stocks kept a lid on the gains, while buying in Utilities, Power and FMCG stocks helped the Sensex and Nifty post gains of 149 and 38 points respectively. Investors were getting comfort as rating agency Icra has forecasted the economy to grow 12-13 per cent in the first quarter of the current fiscal, citing the second highest business activity index reading in 13 months in April. However, markets trimmed some of their gains as traders were worried after US Federal Reserve Chairman Jerome Powell pledged that the central bank would ratchet up interest rates as high as needed to cool off surging inflation. On the global front, all Asian markets were trading higher after the U.S. retail sales for April came in strong, led by immense consumer purchases, while the industrial production figure accelerated higher than estimated in the month.

Back home, the market breadth remained optimistic, as there were 1842 shares on the gaining side against 1377 shares on the losing side, while 135 shares remained unchanged. On the IPO front, Paradeep Phosphates, India’s second largest manufacturer of non-urea fertilisers and di-ammonium phosphates (DAP) in the private sector, was subscribed 39 percent on day two with investors putting in bids for 10.44 crore shares against an IPO size of 26.86 crore units.

The BSE Sensex is currently trading at 54467.77, up by 149.30 points or 0.27% after trading in a range of 54409.53 and 54786.00. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.11%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were Utilities up by 1.28%, Power up by 1.23%, FMCG up by 1.00%, IT up by 0.53%, Healthcare up by 0.51%, while Realty down by 1.15%, PSU down by 0.80%, Telecom down by 0.18% and Oil & Gas was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.94%, Asian Paints up by 1.57%, Dr. Reddy's Lab up by 1.30%, Hindustan Unilever up by 1.24% and Sun Pharma was up by 1.02%. On the flip side, Power Grid down by 2.91%, Bharti Airtel down by 1.70%, Bajaj Finserv down by 1.01%, SBI down by 0.82% and Tech Mahindra was down by 0.57% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its article has said that improving infrastructure, ensuring low and stable inflation, and maintaining macroeconomic stability is critical for reviving animal spirits and spurring growth. It noted that the Indian economy consolidated its recovery, with most constituents surpassing pre-pandemic levels of activity.

It said heightened global risks stemming from weakening growth, elevated inflation, supply disruptions on account of geopolitical spillovers and financial market volatility stemming from synchronized monetary tightening pose near-term challenges. It also said India faces challenges in building from the scars of the pandemic through larger investments in health and productivity of the human capital.

Further, it said that with an acceleration in the pace of digitalization, the footprint of the unicorn ecosystem in India is expanding, reflecting a rapidly changing economy. In order to achieve a higher growth path on a sustainable basis, it said private investment needs to be encouraged through higher capital expenditure by the government which crowds in private investment.

The CNX Nifty is currently trading at 16298.05, up by 38.75 points or 0.24% after trading in a range of 16278.40 and 16399.80. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 2.32%, Adani Ports up by 1.96%, Ultratech Cement up by 1.93%, Asian Paints up by 1.52% and Cipla was up by 1.51%. On the flip side, Power Grid down by 3.14%, BPCL down by 2.12%, Apollo Hospital down by 1.84%, Bharti Airtel down by 1.83% and Bajaj Finserv was down by 1.08% were the top losers.

All Asian markets were trading firm; Hang Seng increased 53.39 points or 0.26% to 20,655.91, Nikkei 225 surged 251.45 points or 0.94% to 26,911.20, Straits Times advanced 36.09 points or 1.13% to 3,237.98, Taiwan Weighted strengthened 240.77 points or 1.5% to 16,296.86, Jakarta Composite soared 46.16 points or 0.69% to 6,690.63, Shanghai Composite gained 3.35 points or 0.11% to 3,097.05 and KOSPI was up by 5.54 points or 0.21% to 2,625.98.

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