Domestic indices trade in fine-fettle in early deals; Healthcare leads gainers

Indian equity benchmarks extended their gains seen in the previous session with gap-up opening on Monday tracking positive cues from global markets. Domestic indices are trading in fine-fettle with gains of around half a percent each in early deals. Buying in Healthcare, Consumer Durables and Bankex stocks were aiding the indices. Sentiments got a boost as Commerce and Industry Minister Piyush Goyal said Indian economy is back in action and it is clear from several indicators such as rising exports and increasing foreign direct investment (FDI) inflows into the country. Adding more optimism, outgoing chief economic advisor K V Subramanian said that Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year. He said that he does not expect commodity inflation will taper the V-shaped recovery going forward. Though, market participants largely overlooked weak macro-economic data. Industrial production growth slipped to 3.1% in September, mainly due to the waning low base effect while mining and manufacturing sectors performed well. Additionally, retail inflation after remaining on downtrend for four months moved a tad up in October to 4.48% due to an uptick in food prices and higher cost of motor fuel. Now, investors are eyeing WPI data to be out later in the day for further direction.

On the global front, Asian markets traded mixed following the positive cues from Wall Street on Friday, as the concerns about inflation raised by the Labor Department's consumer price report last week seem to have been short-lived. Traders also remain concerned about the potential resurgence of coronavirus cases in the region and other countries. Back home, Coal industry stocks were in focus with a private report showing that India's coal import rose by 12.6 per cent to 107.34 million tonnes in the first six months of 2021-22. In scrip specific development, Hero MotoCorp traded higher on a healthy operational performance in Q2. However, Nykaa dropped after the fashion and cosmetics online retailer reported 96% YoY plunge in Q2 net profit to Rs 1.1 crore in the September quarter.

The BSE Sensex is currently trading at 60970.58, up by 283.89 points or 0.47% after trading in a range of 60814.43 and 61036.56. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.48%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Healthcare up by 1.07%, Consumer Durables up by 0.79%, Bankex up by 0.77%, Oil & Gas up by 0.61%, Auto up by 0.58%, while Metal down by 0.73%, Telecom down by 0.04%, Energy down by 0.04% were the few losing indices on BSE.

The top gainers on the Sensex were ITC up by 1.89%, Kotak Mahindra Bank up by 1.39%, Asian Paints up by 1.34%, Titan Company up by 1.06% and Mahindra & Mahindra up by 0.98%. On the flip side, Tata Steel down by 0.70%, Bajaj Auto down by 0.28%, Bajaj Finserv down by 0.17%, HDFC down by 0.17% and Reliance Industries down by 0.16% were the top losers.

Meanwhile, outgoing Chief Economic Advisor (CEA) K V Subramanian has said Indian economy is expected to see a double-digit growth in 2021-22 and between 6.5-7 per cent in the next financial year. The Subramanian said that he does not expect commodity inflation will taper the V-shaped recovery going forward. He said ‘I expect India to grow at double digit this year (FY22) and 6.5-7 per cent next year and over seven per cent and thereafter growth accelerating over seven per cent’.

He said people often do not take into account the impact of substantial reforms that were done, even in 1991 reforms were done, 99 per cent people did not understand implications. He added ‘we have done seminal reforms actually which will be felt going forward’. He said inflation is 4.5 per cent and global inflation is high due to global policies that have only focused on demand in contrast to India's policies that are clearly focused on enhancing supply.

He said ‘When you focus on only enhancing demand without supply measures inflation is what results. Indian policy has shown clear difference with the global financial crisis when India did only demand side measures without supply side interventions that's why we had double digit inflation despite without lockdown and night curfews every month for one and half years’.

The CNX Nifty is currently trading at 18189.65, up by 86.90 points or 0.48% after trading in a range of 18140.55 and 18210.15. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.07%, Hero MotoCorp up by 3.04%, ITC up by 2.00%, UPL up by 1.74% and Asian Paints up by 1.38%. On the flip side, Coal India down by 2.49%, Hindalco down by 1.06%, Tata Steel down by 0.51%, JSW Steel down by 0.36% and BPCL down by 0.34% were the top losers.

Asian markets are trading mixed; Nikkei 225 rose 137.19 points or 0.46% to 29,747.16, Straits Times added 5.99 points or 0.19% to 3,234.44, Taiwan Weighted surged 121.72 points or 0.69% to 17,639.85 and KOSPI jumped 30.49 points or 1.03% to 2,999.29. On the other hand, Hang Seng fell 40.80 points or 0.16% to 25,287.17, Jakarta Composite declined 29.30 points or 0.44% to 6,621.75 and Shanghai Composite was down by 10.22 points or 0.29% to 3,528.88.