Domestic indices trade firm in early deals; Sensex reclaims 60,200 mark

After posting losses in last three sessions, Indian equity benchmarks started the last trading day of week on a strong note tracking positive global cues. Markets are trading firm in early deals with gains of more than half a percent each on the back of buying in all the sector indices led by Metal, Telecom and Consumer Durables. Sentiments got a boost as Niti Aayog Vice-Chairman Rajiv Kumar said Indian economy is expected to grow by more than 10 per cent in the current fiscal supported by a record kharif crop and bright rabi prospects. According to Kumar, significant increase in exports will also boost economic growth and employment generation. Traders took note of report that Commerce and Industry Minister Piyush Goyal said India is looking at reciprocal and equitable access to foreign markets through free trade agreements, which the country is negotiating with its trading partners. Meanwhile, investors are eyeing the industrial and manufacturing production data along with inflation numbers for the further direction.

On the global front, most of the Asian markets traded higher following the mostly positive cues overnight from Wall Street, with support from crude oil prices and as traders looked to pick up stocks at somewhat reduced levels after the recent drop. The recent data showing acceleration in the rate of consumer price inflation has raised the possibility of the Federal Reserve hiking rates by mid-2022. Back home, power stocks were in focus with ICRA’s report stating that the power generation performance of the ICRA-monitored wind power portfolio of 3.2 gigawatt (GW) was adversely impacted during the financial year 2020-21 (FY21) primarily because of lower wind speeds. In scrip specific development, Tata Steel was buzzing after its profit jumped nearly 8 times to Rs 11,918 crore compared with Rs 1,565 crore in the same period last year.

The BSE Sensex is currently trading at 60224.58, up by 304.89 points or 0.51% after trading in a range of 60148.06 and 60324.08. There were 29 stocks advancing against 1 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.42%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Metal up by 1.29%, Telecom up by 1.01%, Consumer Durables up by 0.97%, Power up by 0.95%, Oil & Gas up by 0.92%, while there was no loser.

The top gainers on the Sensex were Tech Mahindra up by 1.98%, Tata Steel up by 1.32%, Bajaj Finserv up by 1.19%, Nestle up by 1.14% and Infosys up by 1.13%. On the flip side, Bajaj Auto down by 0.84% was the sole loser.

Meanwhile, expressing optimism over India’s economic growth, Niti Aayog Vice-Chairman Rajiv Kumar has said that the country’s economy is likely to grow by more than 10 per cent in the current fiscal (FY22) supported by a record kharif crop and bright rabi prospects. He added that this will boost rural demand and spur the revival in the manufacturing sector with improving capacity utilization. Though, he cautioned that inflation is emerging as a key risk to sustainable global economic recovery with supply chain constraints and rising energy prices.

According to Kumar, significant increase in exports will also boost economic growth and employment generation. He said ‘gradual pickup in contact-intensive services sector is further likely to support the growth momentum. India achieved the landmark milestone of administering 1 billion Covid-19 vaccine doses on 21 October’. He also noted that the rapid vaccination drive across the country will ensure that the risk of future wave is minimised.

The Niti Aayog Vice-Chairman pointed out that India sustained its pace of economic recovery in September 2021 as reflected by acceleration in manufacturing PMI at 53.7 (52.3 in August 2021) offset by a modest deceleration in services PMI at 55.2 (56.7 in August 2021). He said ‘Other key high frequency indicators -- power consumption, railway freight, GST collections, e-way bills, etc. -- also show continued pickup in economic activity’.

The CNX Nifty is currently trading at 17981.25, up by 107.65 points or 0.60% after trading in a range of 17943.20 and 18000.85. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.50%, HDFC Life Insurance up by 1.89%, Tech Mahindra up by 1.88%, Tata Consumer Products up by 1.52% and Adani Ports & SEZ up by 1.47%. On the flip side, Bajaj Auto down by 0.95%, Tata Motors down by 0.53%, NTPC down by 0.11%, Ultratech Cement down by 0.10% and Divi's Lab down by 0.03% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 surged 295.76 points or 1.01% to 29,573.62, Straits Times added 1.55 points or 0.05% to 3,239.62, Hang Seng rose 61.25 points or 0.24% to 25,309.24, Taiwan Weighted advanced 65.68 points or 0.38% to 17,518.20 and KOSPI jumped 41.90 points or 1.43% to 2,966.82. On the other hand, Jakarta Composite fell 15.90 points or 0.24% to 6,675.44 and Shanghai Composite was down by 0.22 points or 0.01% to 3,532.57.