Indian equity benchmarks made gap-up opening on Friday tracking positive global cues. Markets are trading firm in early deals on the back of buying in Capital Goods, Utilities and Metal stocks. Investors are eyeing the industrial production data for January and CPI inflation data for February that are slated to be released later in the day. Sentiments got a boost with PHD Chamber of Commerce and Industry report showing that as economic activities gather pace and investor sentiments revive, GDP growth is likely to enter a double-digit growth trajectory and may grow at more than 11 per cent in the next financial year. Some support also came in with Commerce Secretary Anup Wadhawan’s statement that the country's exports are steadily recovering and it is expected to record a healthy growth rate in March. Meanwhile, India reported 21,668 fresh Covid-19 cases on Thursday pushing the overall tally to 11,305,979, according to Worldometer. The death toll from the deadly infection jumped to 158,326. The country continues to be second-most-affected globally, and ranks 11th among worst-hit nations by active cases.
Most of the Asian markets were trading higher following the broadly positive cues overnight from Wall Street as the $1.9 trillion coronavirus relief package got its final seal from President Joe Biden to become a law, paving the way for an economic recovery. Technology and oil stocks helped lead the way higher amid continued bargain hunting. Back home, healthcare industry stocks were in focus with a report that the cabinet approved the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN) as a single non-lapsable reserve fund for healthcare in India. In scrip specific development, Tata Motors rose after unveiling the Ultra Sleek T-Series range of intermediate and light commercial trucks. IDBI Bank jumped after it finally managed to get out of the Reserve Bank of India's (RBI's) watchlist for troubled banks.
The BSE Sensex is currently trading at 51673.03, up by 393.52 points or 0.77% after trading in a range of 51659.21 and 51821.84. 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 0.71%, while Small cap index was up by 0.96%.
The top gaining sectoral indices on the BSE were Capital Goods up by 1.43%, Utilities up by 1.40%, Metal up by 1.38%, Oil & Gas up by 1.38%, PSU up by 1.34%, while FMCG down by 0.26%, Auto down by 0.05% were the only losing indices on BSE.
The top gainers on the Sensex were Larsen & Toubro up by 2.16%, ONGC up by 1.66%, HDFC Bank up by 1.51%, NTPC up by 1.32% and ICICI Bank up by 1.25%. On the flip side, Bajaj Auto down by 1.41%, Hindustan Unilever down by 0.76%, Nestle down by 0.60%, Ultratech Cement down by 0.58% and Maruti Suzuki down by 0.55% were the top losers.
Meanwhile, The Reserve Bank of India (RBI) has said it will conduct simultaneous purchase and sale of government securities for Rs 10,000 crore each under Open Market Operations (OMOs) on March 18, 2020. The RBI said the decision was taken after a review of the current liquidity and financial conditions.
The RBI will purchase three government securities of different maturity dates aggregating to Rs 10,000 crore and sell two gilts of the same amount using the multiple price auction method. The result of the auctions will be announced on the same day. The RBI further said it reserves the right to decide on the quantum of purchase/sale of individual securities.
The RBI will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly functioning of financial markets. Simultaneous purchase and sale of government securities under OMOs, popularly known as Operation Twist, involves purchasing G-Sec of longer maturities and selling equal amount of G-Sec of shorter maturities.
The CNX Nifty is currently trading at 15277.80, up by 103.00 points or 0.68% after trading in a range of 15276.05 and 15336.30. There were 37 stocks advancing against 13 stocks declining on the index.
The top gainers on Nifty were JSW Steel up by 3.07%, BPCL up by 2.97%, IOC up by 2.38%, Larsen & Toubro up by 2.17% and Tata Steel up by 2.04%. On the flip side, SBI Life Insurance down by 2.53%, Hero MotoCorp down by 1.50%, Bajaj Auto down by 1.28%, Hindustan Unilever down by 0.81% and HDFC Life Insurance down by 0.74% were the top losers.
Asian markets were trading mostly in green; Nikkei 225 surged 433.47 points or 1.48% to 29,645.11, Straits Times gained 2.70 points or 0.09% to 3,108.71, Taiwan Weighted rose 48.97 points or 0.30% to 16,228.53, KOSPI jumped 40.88 points or 1.36% to 3,054.58, Jakarta Composite soared 81.10 points or 1.29% to 6,345.78, and Shanghai Composite was up by 13.03 points or 0.38% to 3,449.86, while Hang Seng lost 74.66 points or 0.25% to 29,310.95.