Indian markets maintain upward momentum

Indian equity markets maintained their upward momentum in the afternoon session, following gains in realty, telecom and oil and gas stocks. Healthy buying was observed in blue-chip stocks like Sun Pharma, ONGC and Bharti Airtel. Sentiments was lifted as India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 percent in Q2. The GDP had contracted by a record 23.9 percent in the June quarter of FY21. Traders shrugged off report stating that Indian manufacturing sector lost momentum in the month of November, amid slower increases in factory orders, exports, buying levels and output. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 56.3 in November as against 58.9 in October, although it well above the 50-level that separates growth from contraction.

On the global front, Asian markets were trading firm after Chinese manufacturing improved, South Korea reported stronger exports and Australia’s central bank left its benchmark lending rate at a record low. Back on street, the overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1741:902; while 186 shares remained unchanged.

The BSE Sensex is currently trading at 44544.75, up by 395.03 points or 0.89% after trading in a range of 44118.10 and 44599.02. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.80%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Realty up by 3.11%, Telecom up by 2.90%, Oil & Gas up by 2.11%, Utilities up by 1.77% and TECK was up by 1.77%, while Consumer Durables was down by 0.22% was the lone losing index on BSE.

The top gainers on the Sensex were Sun Pharma up by 4.81%, ONGC up by 3.69%, Bharti Airtel up by 3.63%, Infosys up by 2.62% and Indusind Bank was up by 2.02%. On the flip side, Titan Company down by 1.19%, Kotak Mahindra Bank down by 1.00%, Nestle down by 0.86%, Bajaj Finance down by 0.42% and Mahindra & Mahindra was down by 0.06% were the top losers.

Meanwhile, Indian manufacturing sector lost momentum in the month of November, amid slower increases in factory orders, exports, buying levels and output. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 56.3 in November as against 58.9 in October, although it well above the 50-level that separates growth from contraction.

As per the survey report, aggregate new orders rose at the slowest pace in three months. However, the upturn was sharp and stronger than any seen for eight years prior to September. Besides, employment decreased again as companies observed social distancing guidelines. The rate of job shedding was solid and little-changed from October.

The report further noted that new export orders increased markedly in November, on the back of strong demand for goods from key export markets. However, the pace of expansion eased from October's recent high. Trends for stocks were mixed, with an increase in input holdings contrasting with ongoing declines in inventories of finished goods.

On the price front, input costs and output charges rose at accelerated rates that nevertheless remained below their respective long-run averages. Meanwhile, business optimism faded slightly in November. Output growth is still predicted for the year ahead, but concerns about public policies, rupee depreciation and the COVID-19 pandemic dampened overall confidence.

The CNX Nifty is currently trading at 13084.40, up by 115.45 points or 0.89% after trading in a range of 12962.80 and 13093.30. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 7.89%, Sun Pharma up by 4.69%, ONGC up by 3.95%, Bharti Airtel up by 3.67% and Grasim Industries was up by 3.40%. On the flip side, Nestle down by 2.15%, Titan Company down by 1.30%, Kotak Mahindra Bank down by 1.29%, HDFC Life Insurance down by 0.62% and Larsen & Toubro was down by 0.49% were the top losers.

Asian markets were trading firm; KOSPI rose 42.91 points or 1.66% to 2,634.25, Shanghai Composite gained 58.60 points or 1.73% to 3,450.36, Taiwan Weighted strengthened 162.78 points or 1.19% to 13,885.67, Hang Seng increased 271.43 points or 1.03% to 26,612.92, Nikkei 225 surged 353.92 points or 1.34% to 26,787.54, Jakarta Composite soared 88.13 points or 1.57% to 5,700.55 and Straits Times was up by 5.76 points or 0.21% to 2,811.71.