Indices pare some gains in early noon session

Markets pared some initial gains but continued to trade in green in early noon session amid buying in blue chip stocks from across various sectors. Buying in Consumer Durables, Consumer Discretionary and Capital Goods stocks helped markets to trade higher. Besides, broader indices were also trading in green, supporting their larger peers. Sentiments remained positive with Union minister Piyush Goyals’ statement the Indian economy is well-poised to take off, there is a lot of enthusiasm for making investments in the country. The government will hold discussions with Britain and European Union on free trade agreements. However, markets trimmed some of their initial gains, as pessimism came in with a private report that India’s economy appears to be shaking off a slump, as activity in the services and manufacturing sectors expanded for a second straight month in December.

On the global front, Asian markets were trading mostly in green after the World Health Organization (WHO) said it is still too early to declare the coronavirus outbreak in China a global public health emergency. Back home, in scrip specific development, shares of Adani Gas tumbled on report that Petroleum and Natural Gas Regulatory Board of India (PNGRB) has sent a notice to the company for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises.

The BSE Sensex is currently trading at 41507.32, up by 120.92 points or 0.29% after trading in a range of 41275.60 and 41587.18. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.69%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.95%, Consumer Discretionary up by 0.95%, Capital Goods up by 0.86%, Auto up by 0.85% and Metal was up by 0.84%, while Telecom down by 1.24%, TECK down by 0.60% and IT was down by 0.53% were the few losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.58%, HCL Tech up by 1.44%, Hero MotoCorp up by 1.39%, Larsen & Toubro up by 1.08% and ONGC was up by 1.06%. On the flip side, Power Grid Corporation down by 2.34%, Bharti Airtel down by 1.45%, Infosys down by 0.99%, TCS down by 0.75% and ITC was down by 0.11% were the top losers.

Meanwhile, Union minister Piyush Goyal has asserted that the Indian economy is well-poised to take off and the government is committed to ensure economic growth. He noted that there is a lot of enthusiasm for making investments in the country. He said ‘Britain is set to leave the European Union by the end of January.... things have once again started showing an uptrend... economy is well poised to take off from here.’

Talking on Regional Comprehensive Economic Partnership (RCEP), the minister said it was an unbalanced trade agreement, which was really not fulfilling the guiding principles on which RCEP started about eight years ago, therefore India chose not to participate in it. He also said ‘out of the RCEP countries India already has bilateral trade agreements with ASEAN 10 with Japan and Korea, we are close to concluding negotiations with Australia which we have restarted now and in the next 6 to 8 months we are can close a bilateral trade partnership with Australia.’

Goyal further said ‘RCEP was effectively becoming a free trade agreement between China and India. I don’t think India is ready to engage unless we see open government, better transparency, regulatory practices being followed, and greater market access for Indian goods and services on a reciprocal basis.’

The CNX Nifty is currently trading at 12222.30, up by 41.95 points or 0.34% after trading in a range of 12149.65 and 12246.35. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 7.69%, Indian Oil Corporation up by 2.15%, UPL up by 1.97%, NTPC up by 1.85% and JSW Steel was up by 1.67%. On the flip side, Power Grid Corporation down by 2.70%, Bharti Airtel down by 1.48%, Infosys down by 1.16%, Cipla down by 0.74% and TCS was down by 0.68% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 8.31 points or 0.03% to 23,803.75, Hang Seng increased 40.52 points or 0.15% to 27,949.64 and Straits Times was up by 5.46 points or 0.17% to 3,240.02. On the flip side, Jakarta Composite was down by 3.89 points or 0.06% to 6,245.32.