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Market drifts higher on positive Asian stocks

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Capital Market
Last Updated : Mar 18 2021 | 9:50 AM IST

Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:25 IST, the barometer index, the S&P BSE Sensex, was up 369.57 points or 0.74% at 50,171.19. The Nifty 50 index was up 95.15 points or 0.65% at 14,816.45. Upbeat Asian stocks boosted sentiment after the US Federal Reserve kept monetary policy and rates unchanged and projected a rapid jump in US economic growth.

The S&P BSE Mid-Cap index was up 0.78%. The S&P BSE Small-Cap index was up 0.66%.

The market breadth, indicating the overall health of the market, is strong. On the BSE, 1416 shares rose and 538 shares fell. A total of 79 shares were unchanged.

Stocks in news:

IRCTC gained 0.55%. IRCTC said that there has been no major impact of terminating of mobile catering contracts in this FY 2020-21 and the impact, if any, will be reassessed on resumption of regular train services and subject to outcome of the ongoing litigation.

Bharat Heavy Electricals (Bhel) advanced 5.69%. Bhel has emerged as the lowest bidder (~Rs.10,800 crore) for the fleet mode tender floated by Nuclear Power Corporation of India (NPCIL) for the 6x700 MW Turbine Island Package Projects.

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Punjab National Bank (PNB) rose 0.65%. PNB informed that a wholly owned subsidiary of the bank namely PNB Cards & Services has been incorporated on 16 March 2021 by the Registrar of Companies, Delhi to undertake the non-financial support services related to credit card business of the bank.

HFCL rose 0.56%. HFCL has bagged an order worth Rs.221.16 crore from Uttar Pradesh Metro Rail Corporation., for design, manufacture, supply, installation, testing and commissioning of telecommunication systems for Kanpur Metro and Agra Metro Project.

Wonderla Holidays rose 1.3%. The company has announced its decision to temporarily suspend the services of its food takeaway and home delivery initiative 'Wonder Kitchen'.

Global Markets:

Asian stocks are trading higher Thursday after the Federal Reserve pledged to keep monetary policy and rates unchanged and projected a rapid jump in U.S. economic growth this year as the COVID-19 crisis eases.

In US, the S&P 500 and Dow Jones Industrial Average closed at record highs on Wednesday after the Fed predicted a fast economic recovery from the coronavirus pandemic and said it would maintain its interest rate at close to zero. It was the first time the Dow closed above 33,000 points.

While the Fed expects benchmark interest rates to remain near zero for the next two years, the central bank upgraded their economic outlook to reflect expectations for a stronger recovery from the pandemic-triggered recession. Gross domestic product is expected to grow 6.5% in 2021 before cooling off in later years.

Fed Chair Jerome Powell said in a press conference that the Fed would need to see a material and sustained move in inflation above 2% before considering changes to its current easy policy stance.

Back home, domestic stock market ended with heavy losses on Wednesday, sliding for the fourth straight session amid a broader selloff. The barometer index, the S&P BSE Sensex, tumbled 562.34 points or 1.12% at 49,801.62. The Nifty 50 index lost 189.15 points or 1.27% at 14,721.30.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,625.82 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 562.15 crore in the Indian equity market on 17 March, provisional data showed.

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First Published: Mar 18 2021 | 9:29 AM IST

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