Sensex up 209 pts; Bank Nifty climbs

19 Apr 2022 , 02:35 PM

The key barometers traded with decent gains during mid-afternoon trade, supported by banks and oil & gas scrips. At 14:30 IST, the barometer index, S&P BSE Sensex rose 209.20 points or 0.37% at 57,375.94. The Nifty 50 index gained 62.30 points or 0.36% at 17,235.95.

In the broader market, the S&P BSE Mid-Cap index rose 0.60%. The S&P BSE Small-Cap index added 0.75%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,098 shares rose while 1,270 shares fell. A total of 132 shares were unchanged.

COVID-19 Update:

India recorded 1,274 new COVID-19 cases and one death as on Tuesday, according to the Union Ministry of Health and Family Welfare. The active cases currently stand at 11,860 and comprise 0.03% of the total infections. The recovery rate remained unchanged at 98.76% and 928 recoveries were reported on Monday. The daily positivity rate was at 0.31% while the weekly positivity rate stood at 0.34%.

Economy:

The debt piled on by the private sector during the COVID-19 pandemic could lower growth for emerging markets by 1.3% over three years, the International Monetary Fund (IMF) has warned. For developed nations, the hit to growth is seen marginally lower at 0.9% over the same period, the IMF said in a chapter of its World Economic Outlook report released on 18 April 2022.

The surge in global private debt in 2020 – 13% of GDP – was widespread, faster than during the global financial crisis and almost as large as the rise in public debt, the IMF said in the report.

Indian private sector has to drive the carbon transition efforts as the countrys significant economic development needs will constrain the governments ability to extend sufficient financial support, said Moodys Investors Service. According to Moodys, many large corporations have launched a wide range of emission targets through 2050.

Indias (Baa3 stable) 2070 net-zero target and intermediate goals through 2030 present significant policy implementation challenges for the government, carving a more central role for private companies and investors to drive the transition, according to a new report by Moodys.

Numbers to Watch:

The yield on the 10-year benchmark federal paper fell to 7.133% from its previous close of 7.153%.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 76.2650, compared with its close of 76.29 during the previous trading session.

MCX Gold futures for 3 June 2022 settlement lost 0.04% to Rs 53,250.

The US Dollar index (DXY), which tracks the greenbacks value against a basket of currencies, fell 0.06% to 100.72.

In the commodities market, Brent crude for June 2022 settlement fell 75 cents or 0.66% at $112.41 a barrel, following outages in Libya deepened concerns over tight global supply amid the Ukraine crisis.

Buzzing Index:

The Nifty Bank rose 1.02% to 37,103.65. The index lost 2.69% in the last two trading sessions.

Among the components of the Nifty Bank index, AU Small Finance Bank (up 4.83%), Bandhan Bank (up 3.32%), ICICI Bank (up 2.45%), Bank of Baroda (up 2.19%) and State Bank of India (SBI) (up 2.06%) were the top gainers.

Among the other gainers were Axis Bank (up 1.93%), Federal Bank (up 1.65%), IndusInd Bank (up 1.07%) and Punjab National Bank (up 0.83%).

Meanwhile, Kotak Mahindra Bank (down 0.19%), IDFC First Bank (down 0.25%) and HDFC Bank (down 2.15%) declined.

Stocks in Spotlight:

Coal India (CIL) jumped 6.92%. The company said that it has raised the supplies to thermal power stations by 14.2% during the first half of April 2022 as compared to same period last April. CILs supplies have hit 1.64 million tonnes (MTs) per day during this period against 1.43 MTs supplied in the similar period during April 2021. The company had accelerated its production to 26.4 MTs during the first half of April 2022, registering 27% year-on-year growth. The company is heading for its highest April production ever. Output expansion in volume terms was 5.7 MTs.

Aurionpro Solutions spurted 7.28%. The IT firm bagged an order from a large public sector bank in India. The company announced that it was selected by one of the largest public sector banks in India for the supply, implementation, maintenance & support of the integrated transaction banking solution. The project is valued at close to Rs 18 crore and will be implemented within this year followed by the maintenance & support for a five-year period.

Pennar Industries advanced 4.53%. The company bagged orders worth Rs 498 crore across its various business verticals. The verticals of the company include: PEB, Ascent Buildings (USA), ICD, Railways, Tubes and Steel. The orders have been received during the months of February and March 2022 and are expected to be executed within the next two quarters, the company further stated.

Global Markets:

European stocks declined across the board while Asian markets closed mixed on Tuesday, with investors attention focused on the latest developments in the war between Russia and Ukraine.

Global investors are watching Ukraine closely after the countrys military reportedly said on Monday that a long-expected offensive push into the Donbas region in eastern Ukraine has started, with intensified assaults Monday in the Slobozhansky and Donetsk operational districts in the north and east of the country.

With the conflict showing no signs of ending soon, the World Bank has lowered its global growth forecast for 2022 by nearly a full percentage point, from 4.1% to 3.2%, citing the pressure that Russias invasion of Ukraine has placed on the global economy.

On Monday, the Peoples Bank of China announced it will increase financial support for industries, businesses and people affected by COVID-19.

Crypto Market:

Among the popular crypto currencies, Binance Coin (BNB) (up 5.06%), Ethereum (ETH) (up 3.94%) and Bitcoin (BTC) (up 3.62%) advanced.

However, Tether (USDT) (down 0.89%) and Doge Coin (down 0.36%) declined.

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