Post Session: Quick Review

Indian equity benchmarks ended on a strong note on Tuesday’s trading session, as bulls held a tight grip over the Dalal Street. Markets made gap-up opening, as traders took encouragement with a private report that Indian economy is showing strong signs of recovery from the devastation caused by the pandemic, with an upswing being reported in 19 out of the 22 economic indicators as compared to the pre-Covid levels.

Some support came in as new research from the US India Strategic Partnership Forum (USISPF) and digital currency exchange CrossTower has said web 3.0, the idea that the next iteration of the Internet which will be built on concepts of decentralisation, openness, and greater user utility, can help India contribute an additional $1.1 trillion of economic growth to its GDP over the next 11 years.

Indices maintained gaining rally in the second half of the trading session,as the government said it is taking all steps to strengthen the National Company Law Tribunal (NCLT) to reduce delays in disposal of cases under the insolvency law. Besides, India underlined its commitment to enhanced trade and investment in the Russian Far-East with the two countries identifying sectors such as energy, maritime connectivity, healthcare and tourism as areas of further cooperation in that region.

On the global front, European markets were trading higher as fears surrounding the Omicron variant eased. Asian markets settled higher, after China's exports grew more than expected in November, reports said citing data from the General Administration of Customs on Tuesday. Exports grew 22 percent on a yearly basis in November, which was bigger than the forecast of 19 percent. Likewise, imports advanced 31.7 percent from the last year.

The BSE Sensex ended at 57633.65, up by 886.51 points or 1.56% after trading in a range of 56992.27 and 57905.63. There were 29 stocks advancing against 1 stock declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 1.29%, while Small cap index up by 1.14%. (Provisional)

The top gaining sectoral indices on the BSE were Metal up by 3.20%, Realty up by 2.58%, Bankex up by 2.54%, Basic Materials up by 2.02% and PSU up by 1.83%, while there were no losing sectoral indices on the BSE. (Provisional)

The top gainers on the Sensex were Tata Steel up by 3.63%, Axis Bank up by 3.60%, ICICI Bank up by 3.46%, Kotak Mahindra Bank up by 2.57% and SBI up by 2.43%. On the flip side, Asian Paints down by 0.22% was the only loser. (Provisional)

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the strong initial public offering (IPO) issuances in FY22 in the Indian buoyant stock market bode well with the country’s economic recovery.

According to the report, equity raising by entities will not have a meaningful impact on their debt levels, as the objective of raising funds is largely to do with unlocking the value proposition rather than creating new investments. Overall issuances have reached a significant level after FY18 in terms of issue size, with four months still left in the financial year.

Credit rating agency further noted that enormous worldwide liquidity owing to the culmination of fiscal and monetary expansion, strong investor appetite, favourable financial market conditions and a sharp recovery in business conditions have uplifted the IPO market in FY22.

Besides, Ind-Ra said that few auto component players have also resorted to IPO issuances in FY22 after a consecutive five years of absence, to fund working capital requirements and repayment of borrowings. It said that within healthcare industry, major issues have been undertaken so as to take up capex activities and reduce borrowings.

The CNX Nifty ended at 17176.70, up by 264.45 points or 1.56% after trading in a range of 16987.75 and 17251.65. There were 45 stocks advancing against 5 stocks declining on the index. (Provisional)

The top gainers on Nifty were Hindalco up by 5.02%, Tata Steel up by 3.61%, Axis Bank up by 3.60%, ICICI Bank up by 3.54% and Tata Motors up by 3.13%. On the flip side, Cipla down by 0.64%, Britannia down by 0.63%, Divi's Lab down by 0.47%, Indian Oil Corp. down by 0.29% and Asian Paints down by 0.26% were the top losers. (Provisional)

European markets were trading higher; UK’s FTSE 100 increased 73.21 points or 1.01% to 7,305.49, France’s CAC increased 120.48 points or 1.75% to 6,986.26 and Germany’s DAX was up by 237.30 points or 1.54% to 15,618.09.

Asian markets settled higher on Tuesday, tracking gains in Wall Street overnight with hopes that the newest Covid-19 variant Omicron will prove less dangerous than earlier strains like Delta. Japanese shares gained, with the Nikkei marking its biggest percentage gain since November 1, as investors offset data showing that Japan's household spending declined for the third straight month in October. Chinese shares edged marginally higher after the Chinese central bank PBoC released about 1.2 trillion yuan ($188 billion) of liquidity into the financial system via a cut in the reserve requirement ratio for most banks. China’s exports and imports grew faster than expected in November, data from the General Administration of Customs showed earlier today. However, lingering concerns over a crisis in the China’s property sector capped the upside.