Pharma, Banking Stocks Drive Markets Up in Early Trade

Markets opened on a positive note on Wednesday, tracking gains in some of the index majors and largely positive global cues.

The 30-share BSE Sensex was trading 80.72 points or 0.15 per cent higher at 52,356.29 in initial deals, while the broader NSE Nifty advanced 26.45 points or 0.17 per cent to 15,766.55. ONGC was the top gainer in the Sensex pack, rising around 2 per cent, followed by SBI, Sun Pharma, HDFC, Asian Paints, Dr Reddy’s and Bajaj Finserv. On the other hand, UltraTech Cement, Maruti, Bajaj Auto and ICICI Bank were among the laggards.

The S&P Sensex slipped 52.94 points or 0.10 per cent to 52,275.57 and Nifty declined 11.55 points or 0.07 per cent to 15,740.10 at the close of trading hour on Tuesday. Foreign institutional investors (FIIs) were net buyers in the capital market with a purchase volume of 1,422.71 crore on Tuesday, as per provisional exchange data.

“Domestic equities look to be muted as of now. An improved prospect of economic recovery led by sharp drop in daily Covid caseload, ramping up of vaccination process and phased withdrawal of restrictions imposed by states have led markets to witness fresh highs,” said Binod Modi, Head of Strategy at Reliance Securities.

India’s Covid-19 tally reached 2,90,89,069 with 92,596 fresh cases reported in the last 24 hours, while 2,219 more fatalities have pushed the death toll to 3,53,528, according to data released by the health ministry on Wednesday morning. Active Covid cases in India have decline to 12,31,415.

Going forward, with the easing of lockdown restrictions at state level, the government’s higher allocation towards capital expenditures for FY22E should be helpful in driving economic growth in coming quarters, Modi said.

The Indian currency opened on a flat note, slipping 1 paisa to 72.90 against the US dollar in early trade on Wednesday.

Bourses in Seoul, Tokyo and Hong Kong were in the red in mid-session deals, while Shanghai was trading with gains. Equities on Wall Street ended on a positive note in overnight trade.

The international oil benchmark Brent crude was trading 0.65 per cent higher at $72.69 per barrel.