Markets manage to keep heads above water

In a volatile session, Indian equity benchmarks were managing to keep their heads above water in late morning session, with both Sensex and Nifty trading higher with marginal gains. Positive cues from other Asian markets helped key indices to trade in green terrain. Sentiments were positive, amid reports that after being severely hit by the COVID-19 pandemic this year, the country's exports growth is expected to rebound in 2021 on the back of recovery in economic activities and demand worldwide. However, the uncertain global trade situation due to rising protectionism, which adversely impacted exports in 2019, could have a bearing on the country's outbound shipments in the coming months.
 
On the global front, Asian markets were trading mostly in green, after South Korea's inflation slowed marginally in December. The data from Statistics Korea revealed that consumer price inflation eased to 0.5 percent from 0.6 percent in November. The rate came in line with expectations. Excluding food and energy, core inflation also slowed to 0.5 percent from 0.6 percent. Month-on-month, consumer prices gained 0.2 percent, in contrast to a 0.1 percent drop in the previous month. At the same time, core consumer prices remained flat in December.

The BSE Sensex is currently trading at 47823.02, up by 76.80 points or 0.16% after trading in a range of 47602.12 and 47865.56. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.26%, while Small cap index was up by 0.45%.

The top gaining sectoral indices on the BSE were Realty up by 0.77%, Capital Goods up by 0.66%, Industrials up by 0.54%, Consumer discretionary up by 0.53% and Healthcare up by 0.47%, while IT down by 0.37%, Metal down by 0.34%, Basic Materials down by 0.34%, TECK down by 0.33% and Utilities down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.67%, ICICI Bank up by 1.16%, Maruti Suzuki up by 0.70%, Larsen & Toubro up by 0.58% and Dr. Reddy’s Lab up by 0.47%. On the flip side, Ultratech Cement down by 1.10%, TCS down by 0.83%, Tech Mahindra down by 0.79%, Power Grid down by 0.76% and Axis Bank down by 0.74% were the top losers.

Meanwhile, aviation regulator -- Directorate General of Civil Aviation (DGCA) has said that the coronavirus-induced suspension of scheduled international passenger flights has been extended till January 31. However, international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis.

The DGCA circular also said that the suspension does not affect the operation of international all-cargo operations and flights specifically approved by it. Scheduled international passenger services have been suspended in India since March 23 due to the coronavirus pandemic.

But special international flights have been operating under the Vande Bharat Mission since May and under bilateral ‘air bubble’ arrangements with selected countries since July. India has formed air bubble pacts with 24 countries including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories.

The CNX Nifty is currently trading at 13998.50, up by 16.55 points or 0.12% after trading in a range of 13936.45 and 14010.15. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were HDFC up by 1.73%, ICICI Bank up by 1.16%, Tata Motors up by 0.84%, Maruti Suzuki up by 0.82% and Dr. Reddy’s Lab up by 0.64%. On the flip side, Shree Cement down by 1.53%, Ultratech Cement down by 1.06%, UPL down by 0.90%, Tech Mahindra down by 0.88% and TCS down by 0.87% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 84.02 points or 0.31% to 27,231.13, Taiwan Weighted strengthened 16.77 points or 0.11% to 14,704.47 and Shanghai Composite gained 28.34 points or 0.83% to 3,442.79. On the flip side, Straits Times trembled 25.41 points or 0.89% to 2,843.81.