Sensex, Nifty trade in high spirits on strong macro-economic data

Indian equity benchmarks made gap-up opening on Wednesday following Asian peers coupled with better-than-expected macroeconomic data of the country. Markets are trading in fine-fettle in early deals with gains of around a percent each on account of buying in Metal, IT and Energy stocks. Sentiments got a boost as India's gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 percent. The numbers mark a significant increase as compared to the COVID-19-hit second quarter of last fiscal year, when the GDP had declined by 7.4 percent. Adding optimism, industry chamber PHDCCI said the country's economic growth may be in double-digits in current financial year (FY22). Some support came in with government data showing that the combined output of eight core industries has surged by 7.5 percent in October, as compared to the same period last year. Investors are eyeing Manufacturing PMI data to be out later in the day.

Most of the Asian markets traded higher despite the broadly negative cues overnight from Wall Street, after the Japanese government stepped up virus containment measures on confirming the country's first Omicron variant case. Besides, the manufacturing sector in Japan continued to expand in November, and at a faster pace, the latest survey from Jibun Bank showed on Wednesday with a seasonally adjusted manufacturing PMI score of 54.5. Back home, auto stocks were in action reacting to their sales numbers. In scrip specific development, Bombay Rayon Fashions gained after it reported a turnaround in March quarter standalone earnings, with a net profit of Rs 388.01 crore as against a net loss of Rs 285.32 crore in the quarter ended March 2020.

The BSE Sensex is currently trading at 57568.49, up by 503.62 points or 0.88% after trading in a range of 57365.85 and 57765.47. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.17%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Metal up by 1.08%, IT up by 0.94%, Energy up by 0.91%, TECK up by 0.84%, Bankex up by 0.82%, while Power down by 1.23%, Utilities down by 0.87%, Healthcare down by 0.55%, Realty down by 0.20% were the few losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 3.06%, HDFC up by 2.45%, Tech Mahindra up by 2.09%, Asian Paints up by 1.42% and SBI up by 1.39%. On the flip side, Dr. Reddy's Lab down by 0.82%, Ultratech Cement down by 0.63%, Mahindra & Mahindra down by 0.45%, Sun Pharma down by 0.32% and Power Grid down by 0.07% were the top losers.

Meanwhile, India's Gross Domestic Product (GDP) has grown by 8.4 per cent in the second quarter (July-September) of 2021-22, mainly due to waning low base effect and as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave. Data released by the National Statistical Office (NSO) showed that the GDP had contracted by 7.4 per cent in the corresponding July-September quarter of 2020-21. Meanwhile, Indian economy had expanded at a record rate of 20.1% in the first quarter, mainly on account of the low base of last year.

GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 percent as compared to 7.4 percent contraction in Q2 2020-21.  Quarterly GVA at Basic Prices at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 32.89 lakh crore, as against Rs 30.32 lakh crore in Q2 2020-21, showing a growth of 8.5 percent. GDP at Current Prices in Q2 2021-22 is estimated at Rs 55.54 lakh crore, as against Rs 47.26 lakh crore in Q2 2020-21, showing a growth of 17.5 percent as compared to 4.4 percent contraction in Q2 2020-21. GVA at Basic Prices at Current Prices in Q2 2021-22 is estimated at Rs 49.70 lakh crore, as against Rs 42.54 lakh crore in Q2 2020-21, showing a growth of 16.8 percent.

GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) is estimated at Rs 68.11 lakh crore as against Rs 59.92 lakh crore during the corresponding period of previous year, showing a growth of 13.7 percent in H1 2021-22 as against contraction of 15.9 percent during the same period last year. GDP at Current Prices in H1 2021-22 is estimated at Rs 106.77 lakh crore as against Rs 86.15 lakh crores during the corresponding period of previous year, showing a growth of 23.9 percent in H1 2021-22 as against contraction of 13.4 percent during the same period last year.

Meanwhile, manufacturing output increased at a pace of 5.5% during the quarter under review, while construction segment grew 7.5%. Gross fixed capital formation, which is a measure for investments in the economy, surged 11% for the period under review. Private consumption, which is a major contributor to the economy and as measured by Private Final Consumption Expenditure (PFCE) increased by 8.6% in the September quarter. Mining and Quarrying during the quarter surged 15.4%, while electricity, gas, water supply and other utility services output rose 8.9%.

The CNX Nifty is currently trading at 17148.35, up by 165.15 points or 0.97% after trading in a range of 17079.75 and 17202.05. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 3.95%, Indusind Bank up by 3.23%, HDFC up by 2.68%, Tech Mahindra up by 2.40% and Hindalco up by 2.05%. On the flip side, Dr. Reddy's Lab down by 0.70%, NTPC down by 0.63%, IOC down by 0.42%, ONGC down by 0.42% and Sun Pharma down by 0.36% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 rose 217.28 points or 0.78% to 28,039.04, Straits Times added 37.62 points or 1.24% to 3,078.91, Hang Seng surged 323.01 points or 1.38% to 23,798.27, Taiwan Weighted advanced 57.34 points or 0.33% to 17,485.10, KOSPI jumped 57.29 points or 2.02% to 2,896.30 and Shanghai Composite was up by 3.94 points or 0.11% to 3,567.83, while Jakarta Composite fell 0.65 points or 0.01% to 6,533.28.