IGI Logo

Indian stock markets continued to trade in positive terrain in the afternoon session as centre extension to the vaccine-for-all drive, its decision to allow states to procure doses directly from manufacturers boosted investors' sentiment. Also, government is likely to waive 10 per cent customs duty levied on imported vaccines in a bid to keep low the cost of overseas vaccines that are being eyed to supplement domestically made shots ahead of opening COVID-19 vaccination to all citizens over 18 years of age. While Russia's Sputnik V vaccines are due to arrive this month or latest by next month, manufacturers like Moderna and Johnson and Johnson have been urged to seek emergency use approval in India. However, upside remain capped with report stating that the a month's national lockdown can hurt GDP growth by 2 percentage points, while expecting governments to continue with localised restrictions to arrest the Covid spread. On the global front; Asian markets were trading mixed after Wall Street pulled back from record levels in overnight trade and with Japan fearing a renewed Covid-19 surge.

Back on street, buying in frontline stocks such as Dr. Reddys Lab, Bajaj Finance and Bajaj Finserv were aiding sentiment, while selling in HCL Tech, Ultratech Cement and HDFC kept the gains in the markets in check. In scrip specific developments, Subex surged ahead of the new product launch on April 22 and Shri Bajrang Alliance touches roof as its agro division certified and register under GMP.

The BSE Sensex is currently trading at 48045.66, up by 96.24 points or 0.20% after trading in a range of 48022.02 and 48478.34. 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 1.42%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.68%, Realty up by 1.46%, Capital Goods up by 1.29%, Auto up by 1.25% and Telecom was up by 1.20%, while IT down by 0.82% and TECK was down by 0.62% were the only losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 4.59%, Bajaj Finance up by 3.95%, Bajaj Finserv up by 3.90%, Indusind Bank up by 3.40% and Bajaj Auto was up by 1.99%. On the flip side, HCL Tech down by 2.82%, Ultratech Cement down by 2.34%, HDFC down by 1.49%, Tech Mahindra down by 1.27% and Infosys was down by 0.88% were the top losers.

Meanwhile, RBI has said it has decided not to activate countercyclical capital buffer (CCyB) framework as the current situation does not warrant such an action. The RBI in February 2005 had put in place CCyB guidelines with the overall objective of strengthening the banking sector. It was envisaged that the CCyB would be activated as and when the circumstances warranted.

The framework on CCyB was put in place by the Reserve Bank of India in terms of guidelines issued in February 2015 wherein it was advised that the CCyB would be activated as and when the circumstances warranted, and that the decision would normally be pre-announced. The framework envisages the credit-to-GDP gap as the main indicator, which may be used in conjunction with other supplementary indicators like credit-to-deposit ratio, industrial outlook assessment survey, interest coverage ratio, and asset quality.

The RBI had said the aim of the countercyclical capital buffer regime was two-fold. Firstly, it requires banks to build up a buffer of capital in good times which may be used to maintain flow of credit to the real sector in difficult times. Secondly, it achieves the broader macro-prudential goal of restricting the banking sector from indiscriminate lending in the periods of excess credit growth that have often been associated with the building up of system-wide risk.

The CNX Nifty is currently trading at 14384.00, up by 24.55 points or 0.17% after trading in a range of 14368.05 and 14526.95. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 4.54%, Bajaj Finserv up by 3.95%, Bajaj Finance up by 3.56%, Tata Consumer Products up by 3.46% and Indusind Bank was up by 3.13%. On the flip side, Ultratech Cement down by 2.58%, HCL Tech down by 2.36%, Shree Cement down by 1.79%, Tech Mahindra down by 1.29% and HDFC was down by 1.22% were the top losers.

Asian markets were trading mixed; Straits Times trembled 10.06 points or 0.31% to 3,199.66, Nikkei 225 slipped 584.99 points or 1.97% to 29,100.38, Shanghai Composite declined 2.33 points or 0.07% to 3,475.22 and Jakarta Composite was down by 49.68 points or 0.82% to 6,002.86.

On the flip side, KOSPI rose 21.86 points or 0.68% to 3,220.70, Taiwan Weighted strengthened 60.59 points or 0.35% to 17,323.87 and Hang Seng was up by 2.88 points or 0.01% to 29,109.03.

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