Domestic markets trade firm in early deals tracking Asian peers

Indian equity benchmarks, after coming from long weekend holiday, made positive start on Monday tracking Asian peers. Markets are trading firm with gains of over half a percent each in early deals on the back of buying in all sector indices led by Realty, PSU and Metal. Sentiments got a boost as India Ratings revised its projections for economic contraction to 7.8 per cent for 2020-21 from the earlier expectation of 11.8 per cent due to easing Covid-19 headwinds and better than expected numbers in the second quarter of the current financial year. Adding more optimism, an article on the state of economy in the RBI Bulletin stated that the economy is coming out of the COVID-19 pandemic's deep abyss faster than most of the predictions, and the growth will enter positive zone in the third quarter of the current financial year. Market participants took note of report that the government has planned for a dry run of Covid-19 vaccine in four states - Andhra Pradesh, Assam, Gujarat, and Punjab - which will take place between December 28-29, ahead of actual implementation whenever the drug gets finalised. Meanwhile, with 20,333 fresh Covid-19 cases, India's caseload now stands at 10,208,725. The country's death toll has mounted to 147,940. 

On the global front, all the Asian markets were trading higher as investors' sentiment received a boost after U.S. President Donald Trump signed a coronavirus relief and government spending package into law on Sunday, just days after he threatened not to sign the package and called it a disgrace. Europe's launch of a mass coronavirus vaccination drive on Sunday also raised hopes for an economic recovery. Meanwhile, the Ministry of Economy, Trade and Industry said that industrial output in Japan was flat on a seasonally adjusted basis in November.

Back home, auto stocks were in focus with the Society of Indian Automobile Manufacturers’ (SIAM) statement that automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers. In scrip specific development, Lupin gained as it received tentative approval from the US FDA for generic of Jublia solution. On other hand, Dish TV India came under pressure after it received a demand notice from the government for payment of Rs 4,164.05 crore, which includes licence fee and interest.

The BSE Sensex is currently trading at 47241.06, up by 267.52 points or 0.57% after trading in a range of 47152.03 and 47354.71. There were 29 stocks advancing against 1 stock declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 0.73%, while Small cap index was up by 1.02%.

The top gaining sectoral indices on the BSE were Realty up by 2.32%, PSU up by 1.18%, Metal up by 1.14%, Utilities up by 1.13%, Auto up by 1.01%, while there were no losers on BSE sectoral front.

The top gainers on the Sensex were SBI up by 1.63%, NTPC up by 1.30%, Axis Bank up by 1.25%, ONGC up by 1.13% and Indusind Bank up by 1.09%. On the flip side, Asian Paints down by 0.63% was the sole loser.

Meanwhile, Union Commerce and Industry Minister Piyush Goyal has said that the focus on 'Vocal for Local' and manufacturing of value-added products in India can create job opportunities for the youth and boost the country's economic growth. He noted that as consumers emphasize more on quality products and services at the right price manufactured in the country, it will create more jobs for the youth and help in accelerating the growth of the country's economy.

Goyal said the economy is consumer-driven and 130 crore consumers in the country have the power to decide how fast the economy of the country can grow. He also said the more value-added products are manufactured in the country, the more jobs opportunities it will create in the country. He said it is a collective responsibility of both the consumers and the manufacturers to become vocal for local, which will help in providing jobs for everyone in the country and also help in growing the country’s export share in the global markets.

The minister further said that if the youth demand the best-quality products at the right price and not get attracted to the low-quality or low-priced product, this will force the manufacturers to produce and sell quality products across the country at the right price. He said this will also help the industry to take up this as a challenge to only sell good-quality products or the consumers will reject them. He further stated that the government is committed to protection of rights of consumers. He added that start-ups need to be encouraged so that people in India get an opportunity to showcase their talent and boost the economy.

The CNX Nifty is currently trading at 13836.50, up by 87.25 points or 0.63% after trading in a range of 13813.50 and 13865.45. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.95%, JSW Steel up by 2.54%, Tata Steel up by 1.70%, Coal India up by 1.61% and GAIL India up by 1.54%. On the flip side, Asian Paints down by 0.62% and Hindustan Unilever down by 0.35% were the only losers.

Asian markets were trading in green; Nikkei 225 surged 172.96 points or 0.65% to 26,829.57, Straits Times rose 6.34 points or 0.22% to 2,848.38, Hang Seng inched up 4.64 points or 0.02% to 26,391.20, Taiwan Weighted jumped 126.66 points or 0.88% to 14,458.08, KOSPI gained 22.22 points or 0.79% to 2,829.08, Jakarta Composite soared 60.62 points or 1.01% to 6,069.33 and Shanghai Composite was up by 10.13 points or 0.30% to 3,406.69.