Market Live Updates: Sensex opens in the green, Nifty above 12,800; Tata Motors, L&T and PSU Bank also showing rally

In the following sectors, the metal along with the auto index added a percent while the midcap and smallcap indices are also trading in the green.

The market opens: Sensex is up 129.66 points or 0.3 percent at 43729.62, and the Nifty added 38.80 points or 0.3 percent at 12810.50. In the finance sectors, Bajaj Finance, L&T, and Tata Steel are the top gainers while RIL, Bajaj Finance, and HDFC Bank are the most active stocks for the day.

Among the sectors, the metal along with the auto index added a percent while the midcap and smallcap indices are also trading in the green.

Stock Market Highlights: Indian shares ended with losses on Thursday after 4 sessions of gains, following losses in global peers, as widening COVID-19 restrictions weighed on market sentiment.  The domestic indices fell due to financial and metal stocks. The Sensex closed 580 points to 43,590 while the Nifty50 index ended at 12,771,7, down 166 points. Among sectors, Nifty Bank declined 3 percent while Nifty Fin Services shed 2.4 percent. 

India’s GDP growth will return to pre-COVID levels by Q1FY22, says Morgan Stanley

Morgan Stanley’s Chetan Ahya expects India’s Gross domestic product (GDP) growth to return to pre-COVID levels by Q1of FY22.

“That’s the time when the central bank should begin to think about taking back some of the extraordinary support that they are providing to the economy,” he said.

According to him, India’s GDP may contract by 5.7 percent in 2020 and rebound to 9.8 percent in 2021.

On global inflation, he said, “We are highlighting that there will be an inflation upside in developed markets, especially in the US, but in 2021 it will still be moderate inflationary pressures, not aggressive enough that the policymakers begin to tighten aggressively and slow down the growth.”

According to Ahya, RBI may look to unwind some monetary stimulus.

“There is no need for additional accommodation in monetary policy. The pullback should be done by RBI now,” he added.