Indian equity markets remained strong in late afternoon session, on account of firm cues from the European markets. In line with the larger peers, the broader indices were to holding their gaining rally in late noon deals, while ICICI Bank emerged as a top gainer among all major industry leaders on the BSE. Traders remained up-beat with the industry body FICCI’s statement that the government should infuse capital in the economy without worrying about the fiscal deficit target as the GDP growth is estimated to slip to 11-year low of 5% during 2019-20.
On the global front, European markets were trading in green, as German industrial production rebounded in November. The data from Destatis revealed that industrial production grew 1.1 percent on a monthly basis, offsetting a 1 percent fall in October. Asian markets were also trading in green, after China's consumer prices increased at a steady pace in December. The National Bureau of Statistics reported that consumer prices advanced 4.5 percent year-on-year in December, the same rate as seen in November. On a monthly basis, consumer prices remained flat after rising 0.4 percent in November.
The BSE Sensex is currently trading at 41398.33, up by 580.59 points or 1.42% after trading in a range of 41175.72 and 41463.93. There were 27 stocks advancing against 3 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 1.55%, while Small cap index was up by 1.56%.
The top gaining sectoral indices on the BSE were Realty up by 2.83%, Auto up by 2.46%, Bankex up by 2.25%, Industrials up by 2.25% and Consumer Disc up by 2.06%, while IT down by 0.35% and TECK down by 0.05% were the only losing indices on BSE.
The top gainers on the Sensex were ICICI Bank up by 3.79%, Indusind Bank up by 3.44%, SBI up by 3.31%, Mahindra & Mahindra up by 2.99% and Axis Bank up by 2.63%. On the flip side, TCS down by 1.84%, HCL Tech. down by 0.99% and NTPC down by 0.75% were the few losers.
Meanwhile, underlining labour productivity growth of 5.2% in FY19, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that India will have to raise its labour productivity growth to 6.3% to achieve 8.0% GDP growth. As per the agency, to attain 9.0% GDP growth, labour productivity growth will have to be raised to 7.3% and this is 40.4% higher than the level attained in FY19.
Ind-Ra further said that given the growth slowdown, this looks unlikely in the near term but is not an insurmountable task, adding that such levels of labour productivity growth have been achieved in the past (labour productivity growth FY05-FY08: 8.5%). it said that India’s labour productivity growth, like other nations, came under pressure in the aftermath of the 2008 global financial crisis, especially during FY11-FY15 (5.0%). However, it recovered thereafter and grew at 5.8% during FY16-FY19.
Besides, India Ratings believes the quantity of labour along with the non- information and communication technology (ICT) capital will continue to contribute significantly to the GDP growth due to the demographic composition. But, any decline in the contribution of quality of labour and ICT capital is a matter of concern.
The CNX Nifty is currently trading at 12203.70, up by 178.35 points or 1.48% after trading in a range of 12132.55 and 12217.90. There were 42 stocks advancing against 8 stocks declining on the index.
The top gainers on Nifty were Bharti Infratel up by 6.20%, JSW Steel up by 5.60%, Tata Motors up by 4.96%, ICICI Bank up by 3.80% and Indusind Bank up by 3.39%. On the flip side, TCS down by 1.99%, HCL Tech. down by 1.02%, Coal India down by 0.85%, NTPC down by 0.67% and Wipro down by 0.51% were the top losers.
All Asian markets were trading in green; Nikkei 225 surged 535.11 points or 2.31% to 23,739.87, Hang Seng increased 380.72 points or 1.36% to 28,468.64, Straits Times advanced 5.65 points or 0.17% to 3,251.54, KOSPI rose 35.14 points or 1.63% to 2,186.45, Shanghai Composite gained 22.18 points or 0.72% to 3,089.07, Jakarta Composite soared 19.72 points or 0.32% to 6,245.41 and Taiwan Weighted was up by 153.53 points or 1.3% to 11,970.63.
All European markets were trading in green; UK’s FTSE 100 gained 34.37 points or 0.45% to 7,609.30, France’s CAC rose 34.86 points or 0.58% to 6,065.86 and Germany’s DAX was up by 188.47 points or 1.41% to 13,508.65.
