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Markets likely to open in green on Thursday
Apr-22-2021

Indian markets pared morning gains and ended lower on Tuesday as losses in IT, FMCG and financials mainly dragged the indices during the day. India’s equity, currency, debt and commodity markets were closed on Wednesday on account of Ram Navami. Today, the start of session is likely to be positive tracking strong global cues and the recent ramp-up in vaccine drive announced by the country. Some support will come as Commerce Secretary Anup Wadhawan said the country's exports are reviving and the shipments are expected to be in the solid positive territory in this financial year. He said that exports recorded a significant contraction in April last year but gradually things started improving and the shipments have entered the positive territory. However, worries over the second wave of COVID-19 in the country and tightening of restrictions in various states may cap the gains. India reported 315,802 fresh coronavirus infections on Thursday, taking the cumulative caseload to 15,924,806, Worldometer showed. This is the first time any country has recorded over 300,000 cases in just 24 hours. Traders may be concerned as Care Ratings revised down its forecast for GDP growth to 10.2 per cent in 2021-22 from earlier projection of 10.7-10.9 per cent, with economic activities getting affected across the country due to curbs imposed by states amid surge in COVID-19 cases. Also, domestic rating agency Icra cut its 2021-22 growth estimate by 0.5 per cent on the upper end, as a newer spate of lockdowns and restrictions get imposed in pockets to arrest the rising COVID-19 cases. The agency now expects the economy to grow 10-10.5 per cent in 2021-22, against the 10-11 per cent estimated earlier. Meanwhile, investments through participatory notes (P-notes) in the Indian capital market declined to Rs 89,100 crore at March-end, after hitting 33 months high level in the preceding month. Aviation stocks will be in focus as Indian aviation regulator DGCA said around 78.22 lakh domestic passengers travelled by air in March, which is slightly lower than 78.27 lakh who travelled in February. There will be some reaction in power stocks with a private report stating that the outstanding overdues of power distribution utilities fell by over Rs 15,118 crore to Rs 74,510 crore in March this year, as compared to the preceding month, mainly due to the release of the second tranche of liquidity infusion package. There will be some important result announcements to keep the markets in action.

The US markets ended higher on Wednesday after a two-day decline in a broad rally as a tilt toward stocks poised to benefit from a recovering economy offset Netflix Inc’s sell-off after its disappointing results a day earlier. Asian markets are trading in green on Thursday following an overnight bounce on Wall Street.

Back home, Sell off which emerged in last leg of trade mainly dragged the Indian equity benchmarks into red terrain on Tuesday. Markets started the day on optimistic note as traders took support 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. Some support also came with report that India reported a slight decline of 256,947 in the number of fresh coronavirus (Covid-19) cases on Tuesday, Worldometer showed.  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. Sentiments turned pessimistic and markets started paring initial gains on report that 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. Selloff intensified in last leg of trade which dragged markets lower as traders turned cautious after the retailers' body Retailers Association of India (RAI) has said closure of economic activity at this juncture will lead to permanent closure of businesses and millions of job losses, amid varied localized restrictions being imposed across states in the wake of the second wave of COVID-19 pandemic. Finally, the BSE Sensex fell 243.62 points or 0.51% to 47705.80, while the CNX Nifty was down by 63.05 points or 0.44% to 14296.40.
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