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Markets trade higher in early deals on Tuesday
Apr-20-2021

Indian equity benchmarks have made a positive start and are trading jubilantly in early deals on Tuesday. The broader markets too participated in the rally. Sentiments were up-beat with report that the government announced a liberalised and accelerated Covid-19 vaccination programme beginning May 1, where all above 18 years of age will be eligible to be vaccinated. Also, vaccine manufacturers have been empowered to release up to 50% of supplies directly to state governments and in the open market at pre-declared prices, a move that would boost availability of the prophylactics to the people. Meanwhile, India reported a slight decline of 256,947 in the number of fresh coronavirus (Covid-19) cases on Tuesday, Worldometer showed. With this, India’s Covid tally has shot up to 15,314,714 cases. India, however, reported the highest-ever single-day spike in Covid-related deaths with 1,757 fatalities.  Traders took note of report that the Reserve Bank of India has formed a six-member panel headed by Sudarshan Sen, former Executive Director, to carry out comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem. The panel will recommend suitable measures for enabling such entities to meet the growing requirements of the financial sector. The Committee will submit its report within three months from the date of its first meeting.

On the global front, Asian markets were trading mixed after Wall Street was pulled lower by tech stock declines. The US markets ended lower on Monday as weakness in the technology sector weighed on the markets. Back home, on the sectoral front, PSU, Utilities, Auto, Metal and Power witnessed the maximum gain in trade, while IT remained the lone loser on the BSE sectoral space.

The BSE Sensex is currently trading at 48300.81, up by 351.39 points or 0.73% after trading in a range of 48297.93 and 48478.34. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.52%, while Small cap index up by 1.38%.

The gaining sectoral indices on the BSE were PSU up by 1.62%, Utilities up by 1.61%, Auto up by 1.49%, Metal up by 1.47% and Power up by 1.46%, while IT down by 0.04% was the losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 3.57%, Bajaj Finserv up by 3.26%, Dr. Reddys Lab up by 3.03%, Indusind Bank up by 2.72% and Mahindra & Mahindra up by 2.21%. On the flip side, HCL down by 1.16%, Tech Mahindra down by 0.77%, Asian Paints down by 0.71%, TCS down by 0.36% and HDFC down by 0.01% were the top losers.

Meanwhile, Crisil Ratings in its latest report has stated that securitisation volumes in January-March surged to around Rs 40,000 crore, the highest in all the quarters of the 2020-21 fiscal. Despite this rise, securitisation volumes closed below the psychological Rs 1 lakh crore mark in 2020-21, down from nearly Rs 1.9 lakh crore clocked in each of the previous two fiscals. Securitisation refers to pooling of various contractual debts like housing, auto and commercial loans and selling their related cash flow to third-party investors.

The agency's senior director Rohit Inamdar said ‘The better-than-anticipated rise in volumes in the second half and specifically final quarter of last fiscal points to the resilience of this segment to interruptions brought on by the COVID-19 pandemic in the broader economy’. The securitisation market had started to open up last fiscal as containment restrictions were withdrawn, commercial activity resumed and the moratorium period announced by Reserve Bank of India drew to a close in August 2020. Due to this, deals comprising nearly three-fourths of annual volume were executed in the second half of the fiscal.

As per the report, over 100 entities securitised assets during 2020-21, with more than 15 entering the market for the first time. Private and public sector banks invested in more than two-thirds of securitisation issuances, while foreign banks invested in around 10 per cent and mutual funds, insurance companies, NBFCs, and high-networth individuals (HNIs) accounted for bulk of the rest, it added. In the fiscal, asset-backed securitisation (ABS) deals accounted for nearly two-thirds of securitised volumes. Mortgage-backed securitisation (MBS) issuances, with underlying home loans and loans against property, comprised the remaining, with investors drawing comfort from stable collection efficiency in MBS pools in the post-moratorium period.

The CNX Nifty is currently trading at 14466.35, up by 106.90 points or 0.74% after trading in a range of 14458.85 and 14526.95. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 3.80%, Bajaj Finserv up by 3.39%, Dr. Reddys Lab up by 3.12%, Indusind Bank up by 2.69% and Tata Consumer Product up by 2.51%. On the flip side, HCL down by 0.88%, Asian Paints down by 0.70%, Shree Cement down by 0.67%, Tech Mahindra down by 0.64% and Wipro down by 0.50% were the top losers.

Asian markets were trading mixed; Nikkei 225 fell 518.43 points or 1.75% to 29,166.94, Straits Times lost 2.85 points or 0.09% to 3,206.87, Jakarta Composite dropped 44.43 points or 0.73% to 6,008.11 and Hang Seng declined 4.40 points or 0.02% to 29,101.75. However, Taiwan Weighted jumped 34.00 points or 0.20% to 17,297.28, KOSPI gained 20.37 points or 0.64% to 3,219.21and Shanghai Composite was up by 11.00 points or 0.32% to 3,488.55.

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