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Benchmarks trade higher with notable gains in early deals
Apr-16-2021

Indian equity benchmarks made slightly positive start on Friday, following overnight gains on Wall Street. Markets gained momentum to trade higher with gains of around half a percent each in early deals. Buying in all the sector indices except Energy supported the indices. sentiments got a boost with the government data showing that the country's exports jumped by 60.29 per cent to $34.45 billion in March even as the outbound shipments contracted by 7.26 per cent during the full 2020-21 fiscal to $290.63 billion. Imports too grew by 53.74 per cent to $48.38 billion in March, but dipped by 18 per cent to $389.18 billion during April-March 2020-21. Traders took note of report that as Reserve Bank of India (RBI) concluded the first security acquisition programme (G-SAP) auction buying of Rs 25,000 crore in government bonds. As part of this, the government is scheduled to buy bonds worth 1 lakh crore from the secondary market in the three months to June 30 (Q1 of the current financial year). Meanwhile, India reported 216,850 coronavirus disease (Covid-19) cases, the highest single-day spike so far since the pandemic broke out.

On the global front, Asian markets were trading mixed despite the broadly positive cues overnight from Wall Street amid strong data releases, stellar earnings from U.S. banks and a dip in long term bond yields. The markets remained cautious amid the continuing surge in coronavirus cases in the region and the possible restrictions on economic activity in several markets. Back home, aviation stocks were in focus with Crisil’s report that lower domestic air traffic compared with pre-pandemic levels, together with high fuel prices and only a gradual recovery in international operations would result in domestic airlines posting Rs 9,500-10,000 crore net loss in FY 2022.

The BSE Sensex is currently trading at 49007.10, up by 203.42 points or 0.42% after trading in a range of 48694.49 and 49009.86. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.90%, while Small cap index was up by 1.00%.

The top gaining sectoral indices on the BSE were Power up by 1.34%, Consumer Durables up by 1.28%, Utilities up by 1.07%, Consumer discretionary up by 1.05%, Basic Materials up by 1.05%, while Energy down by 0.25% was the sole losing index on BSE.

The top gainers on the Sensex were Asian Paints up by 2.36%, Ultratech Cement up by 2.19%, HCL Tech. up by 1.98%, Power Grid up by 1.13% and ONGC up by 1.05%. On the flip side, ICICI Bank down by 1.04%, Reliance Industries down by 0.72%, Axis Bank down by 0.64%, Bajaj Finance down by 0.54% and Indusind Bank down by 0.47% were the top losers.

Meanwhile, with a view to streamlining regulations and reducing compliance burden of regulated entities, the Reserve Bank of India (RBI) has set up the second Regulatory Review Authority (RRA 2.0). The RRA would be set up for a period of one year from May 1, 2021, unless its tenure is extended by the Reserve Bank.

RBI said the RRA will engage internally as well as externally with all regulated entities and other stakeholders to facilitate the process. It added the RRA will focus on streamlining regulatory instructions, reduce compliance burden of the regulated entities by simplifying procedures and reduce reporting requirements, wherever possible. It will also obtain feedback from regulated entities on simplification of procedures and enhancement of ease of compliance.

The RBI had set up a Regulations Review Authority (RRA) initially for a period of one year from April 1, 1999, for reviewing regulations, circulars, reporting systems, based on the feedback from public, banks and financial institutions. The recommendations of the RRA enabled streamlining and increasing the effectiveness of several procedures, simplifying regulatory prescriptions, paved the way for issuance of master circular and reduced reporting burden on regulated entities.

The CNX Nifty is currently trading at 14656.30, up by 74.85 points or 0.51% after trading in a range of 14559.00 and 14665.35. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Wipro up by 7.92%, Asian Paints up by 2.60%, Ultratech Cement up by 2.42%, HCL Technologies up by 1.93% and Hero MotoCorp up by 1.63%. On the flip side, ICICI Bank down by 1.01%, Axis Bank down by 0.67%, Reliance Industries down by 0.54%, Indusind Bank down by 0.48% and Bajaj Finance down by 0.37% were the top losers.

Asian markets were trading mixed; Nikkei 225 rose 31.83 points or 0.11% to 29,674.52, Straits Times added 8.90 points or 0.28% to 3,193.67, Hang Seng gained 24.73 points or 0.09% to 28,817.87 and Shanghai Composite was up by 15.75 points or 0.46% to 3,414.74. However, Taiwan Weighted lost 8.98 points or 0.05% to 17,067.75, KOSPI declined 5.08 points or 0.16% to 3,189.25 and Jakarta Composite fell 4.49 points or 0.07% to 6,075.01.
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