Benchmarks extend gains in late afternoon session

The Indian equity benchmarks extended their gains in late afternoon session, with the Sensex and the Nifty gaining above 200 and 50 points, respectively. Markets took support, as Indian manufacturing sector strengthened in the month of December, with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following business closures earlier in the year. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 56.4 in December as against 56.3 in November. Sector wise, banking sector remained in focus, as Reserve Bank of India in its latest report ‘Quarterly Basic Statistical Returns (BSR)-1: Outstanding Credit of Scheduled Commercial Banks (SCBs), September 2020’ has showed that bank credit growth on a year-on-year basis stood at 5.4 per cent in September quarter of the current fiscal year compared to 5.7 per cent growth in the previous quarter.

On the global front, Asian markets are trading mostly in green on 2021’s first trading day, boosted by optimism about coronavirus vaccines after Wall Street ended the year on a new high. European markets were trading higher as a landmark Brexit trade deal and coronavirus vaccine drives across the continent bolstered expectations of a strong economic rebound.

The BSE Sensex is currently trading at 48073.97, up by 204.99 points or 0.43% after trading in a range of 47594.47 and 48168.22. There were 19 stocks advancing against 9 stocks declining on the index, while 2 stocks remain unchanged.

The broader indices were trading in green; the BSE Mid cap index gained 1.13%, while Small cap index was up by 1.11%.

The top gaining sectoral indices on the BSE were Metal up by 3.88%, IT up by 2.22%, Basic Materials up by 2.05%, TECK up by 2.03% and Oil & Gas was up by 1.78%, while Bankex down by 0.42%, Consumer Durables down by 0.32% and Realty was down by 0.29% were the few losing indices on BSE.

The top gainers on the Sensex were ONGC up by 4.35%, TCS up by 2.89%, HCL Tech up by 2.56%, Tech Mahindra up by 2.22% and Sun Pharma up by 1.99%. On the flip side, Kotak Mahindra Bank down by 1.67%, Bajaj Finance down by 1.22%, HDFC Bank down by 0.90%, Asian Paints down by 0.78% and Titan Company down by 0.77% were the top losers.

Meanwhile, Indian manufacturing sector strengthened in the month of December, with manufacturers stepping up production and input buying amid efforts to rebuild their inventories following business closures earlier in the year. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - surged to 56.4 in December as against 56.3 in November.

The report further noted that factory orders increased during December, on the back of the loosening of COVID-19 restrictions, strengthening demand and improved market conditions. In response, firms lifted production again. In both cases, rates of expansion remained sharp despite easing to four-month lows. Goods producers continued to make additional input purchases in December, extending the current sequence of growth to five months.

On the price front, input cost inflation accelerated to a 26-month high in December, while output charges were lifted in response to rising cost burdens, but the rate of inflation was only marginal. Meanwhile, Indian manufacturers maintained an upbeat view that output will increase in the coming year. However, the degree of optimism weakened to a four-month low as some firms were concerned about the lasting effect of the COVID-19 pandemic on the global economy.

The CNX Nifty is currently trading at 14096.55, up by 78.05 points or 0.56% after trading in a range of 13953.75 and 14116.20. There were 35 stocks advancing against 14 stocks declining on the index, while 1 stock remains unchanged. 

The top gainers on Nifty were Hindalco up by 4.91%, Tata Steel up by 4.87%, ONGC up by 4.18%, Eicher Motors up by 4.03% and GAIL India up by 3.44%. On the flip side, Hero MotoCorp down by 2.00%, Kotak Mahindra Bank down by 1.63%, Adani Ports down by 1.32%, Bajaj Finance down by 1.25% and HDFC Bank down by 0.82% were the top losers.

Asian markets are trading mostly in green, Hang Seng increased 241.68 points or 0.89% to 27,472.81, Taiwan Weighted strengthened 169.50 points or 1.15% to 14,902.03, Jakarta Composite soared 125.83 points or 2.1% to 6,104.90, KOSPI rose 70.98 points or 2.47% to 2,944.45, Shanghai Composite gained 29.89 points or 0.86% to 3,502.96 and Straits Times was up by 12.93 points or 0.45% to 2,856.74. On the flip side, Nikkei 225 was down by 185.79 points or 0.68% to 27,258.38.

European markets were trading higher, UK’s FTSE 100 increased 125.65 points or 1.94% to 6,586.17, France’s CAC increased 56.99 points or 1.03% to 5,608.40 and Germany’s DAX was up by 57.74 points or 0.42% to 13,776.52.