Firm trade prevails in morning session

Indian equity benchmarks were trading firm, up nearly 1 percent, in Friday's morning session, led by across the board gains following a positive trend in the international peers. Sentiments remained up-beat with report indicated that job listings continued to improve in December with industries including telecom, agro-based units, and media and entertainment returning to the pre-COVID-19 levels. Some support also came as the Central Board of Indirect Taxes & Customs (CBIC) has introduced liberalised Authorised Economic Operator package for micro, small and medium enterprises (MSMEs) for swift customs clearances. In order to attract MSMEs to become Authorised Economic Operators (AEOs) and avail various benefits, the CBIC has relaxed the compliance criteria provided the MSMEs have a valid certificate from their line-ministry. Market participants paid no heed towards the National Statistical Office (NSO) in its first advanced estimates of national income stated that gross domestic product (GDP) of India is likely to contract by a record 7.7% during 2020-21 as the COVID-19 pandemic severely hit the key manufacturing and services segments.

On the global front, Asian markets were trading mostly in green as investors looked beyond rising coronavirus cases and political unrest in the United States and bet on an economic recovery later in the year. Besides, the Ministry of Internal Affairs and Communications said that the average of household spending in Japan was up 1.1 percent on year in November, coming in at 278,718 yen. That beat expectations for a decline of 1.5 percent following the 1.9 percent increase in October. Back home, on the sectoral front, there was some reaction in sugar sector stocks with a private report stating that Indian sugar mills are aggressively signing export contracts after New Delhi approved a subsidy for overseas sales and as global prices hit their highest level in 3-1/2 years.

The BSE Sensex is currently trading at 48496.13, up by 402.81 points or 0.84% after trading in a range of 48365.58 and 48503.71. 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 0.98%, while Small cap index was up by 1.10%.

The top gaining sectoral indices on the BSE were Realty up by 2.75%, Auto up by 1.84%, IT up by 1.65%, Capital Goods up by 1.57% and TECK up by 1.57%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Larsen & Toubro up by 2.99%, Tech Mahindra up by 2.49%, Sun Pharma Inds. up by 2.41%, Ultratech Cement up by 2.37% and Maruti Suzuki up by 2.22%. On the flip side, Titan Company down by 1.10%, Nestle down by 0.48%, Bajaj Finance down by 0.29% and HDFC down by 0.25% were the top losers.

Meanwhile, after review of present liquidity and financial situation, the Reserve Bank of India (RBI) has said that it will conduct simultaneous purchase and sale of government securities via Open Market Operation (OMO) on January 14.

Under this, the RBI will buy three government securities worth Rs 10,000 crore of different maturity dates. It will sell two securities worth Rs 10,000 crore using the multiple price auction method. The RBI has the right to decide on the quantum of purchase or sale of individual securities. It can accept bids for less than the aggregate amount. It can also purchase or sell marginally higher or lower due to rounding-off.

The RBI also holds the right to accept or reject bids without assigning any reasons. Eligible participants need to submit bids online on the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:00 am and 11:00 am on January 14. Physical bids will be accepted only in the case of a system failure.

The CNX Nifty is currently trading at 14267.95, up by 130.60 points or 0.92% after trading in a range of 14221.65 and 14274.70. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.08%, Eicher Motors up by 2.99%, SBI Life Insurance up by 2.90%, Larsen & Toubro up by 2.89% and Tech Mahindra up by 2.85%. On the flip side, Titan Co down by 0.89%, Hindalco down by 0.79%, Nestle down by 0.48%, Bajaj Finance down by 0.31% and HDFC down by 0.16% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 532.26 points or 1.94% to 28,022.39, Hang Seng increased 350.95 points or 1.27% to 27,899.47, Taiwan Weighted strengthened 155.07 points or 1.02% to 15,369.07, Jakarta Composite soared 102.04 points or 1.66% to 6,255.67, KOSPI rose 84.37 points or 2.78% to 3,116.05 and Straits Times advanced 52.67 points or 1.81% to 2,959.64.

On the flip side, Shanghai Composite declined 22.24 points or 0.62% to 3,553.96.