Barometer gauges maintain gains in morning deals

Indian equity benchmarks maintained their initial gains of around a percent each in morning deals amid gains across other Asian markets. Gains across sectors, led by Auto, Energy and IT shares, pushed the headline indices higher. Sentiments remained upbeat with a private survey showed India’s manufacturing activity grew at the fastest pace in 10 months in November, buoyed by a strong pick-up in demand, but higher inflationary pressure left factories worried about their future prospects. Compiled by IHS Markit, the Purchasing Managers’ Index rose to 57.6 in November from 55.9 in October. The reading was the highest since January and the fifth straight month above the 50-mark that separates growth from contraction. Some relief also came with data showing that the central government's fiscal deficit at end-October worked out to be 36.3 percent of the annual budget target for 2021-22 due to an improvement in the revenue collection. Adding to the optimism, Chief Economic Adviser (CEA) K V Subramanian has exuded confidence that India would achieve double-digit growth in the current financial year on the back of policy initiatives and continuing reforms. He also said the country is well poised to meet the fiscal deficit target of 6.8 per cent of GDP.  

On the global front, Asian markets were trading mostly in green despite Federal Reserve Chair Jerome Powell’s comments that officials should consider a faster removal of monetary stimulus amid high inflation. Back home, on the sectoral front, fertiliser industry’s stocks jumped after report stated that the government plans to increase fertiliser subsidies to a record of more than 1.55 trillion rupees ($20.67 billion) in 2021-2022 to avoid shortages amid a sharp rise in global prices.

The BSE Sensex is currently trading at 57553.25, up by 488.38 points or 0.86% after trading in a range of 57365.85 and 57765.47. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.12%, while Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were Auto up by 1.12%, Energy up by 0.98%, IT up by 0.93%, Metal up by 0.84% and TECK up by 0.84%, while Healthcare down by 0.97%, Utilities down by 0.94%, Power down by 0.70%, Consumer Durables down by 0.46% and Realty down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.12%, Maruti Suzuki up by 3.01%, Tech Mahindra up by 2.39%, HDFC up by 2.08% and Axis Bank up by 1.66%. On the flip side, Dr. Reddy's Lab down by 1.62%, Sun Pharma down by 1.39%, Mahindra & Mahindra down by 1.11%, Titan Company down by 1.02% and Power Grid Corporation down by 0.82% were the top losers.

Meanwhile, with India's GDP expanding by a better-than-expected 8.4 per cent in second quarter of current financial year (Q2FY22), industry chamber PHDCCI has said the country's economic growth may be in double-digits in current financial year (FY22).

PHDCCI President Pradeep Multani stated on the back of meaningful and proactive reforms undertaken by the government, calibrated measures by the RBI, rapid vaccination drive, improved consumer and business sentiments and low base effect, the economy has recovered from the severe contraction of 2020-21. 

He added the chamber projects the overall GDP growth to be in double-digits at 10.25 per cent for FY22. At this juncture, he said, there is a need to address the high commodity prices and shortages of raw material to support the consumption and private investments in the country.

The CNX Nifty is currently trading at 17140.40, up by 157.20 points or 0.93% after trading in a range of 17079.75 and 17202.05. There were 37 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 4.51%, Maruti Suzuki up by 3.67%, Eicher Motors up by 3.64%, Tech Mahindra up by 2.50% and Axis Bank up by 2.37%. On the flip side, Dr. Reddy's Lab down by 1.56%, Sun Pharma down by 1.46%, Indian Oil Corporation down by 1.39%, ONGC down by 1.30% and Titan Company down by 1.01% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 329.61 points or 1.4% to 23,804.87, Nikkei 225 surged 203.93 points or 0.73% to 28,025.69, Taiwan Weighted strengthened 136.71 points or 0.78% to 17,564.47, KOSPI rose 58.02 points or 2.04% to 2,897.03, Straits Times advanced 39.16 points or 1.29% to 3,080.45 and Shanghai Composite gained 3.94 points or 0.11% to 3,567.83.

On the flip side, Jakarta Composite lost 21.10 points or 0.32% to 6,512.83.