Benchmarks trade firm in early deals; Realty index leads gainers on BSE

Indian equity benchmarks extended their previous session’s gains with optimistic start on Tuesday tracking positive trend in the global markets. Domestic indices are trading firm in early deals with gains of over half a percent each on account of buying in all the sector indices led by Realty, Capital Goods and Industrials. Sentiments got a boost as India’s exports in the first three weeks of December rose 36.20% on-year at $23.82 billion. Outbound shipments were 27.7% higher than the same period of 2019-20. Export excluding petroleum, oil and lubricants increased 28.08% over the corresponding period last year. Traders took note of a private report that spiralling prices pinched the pocket of consumer as edible oil, fuel and many other commodities turned dearer this year amid pandemic-induced disruptions but the inflationary pressure is anticipated to ease, though marginally, in the coming months. Meanwhile, the Centre has extended the existing Covid-related restrictions in the country till January 31, 2022, in view of the rising cases of Covid-19 and Omicron variant in the country. On Monday, the number of Omicron cases in India rose to 578. Delhi and Maharashtra have reported 142 cases each.

Most of the Asian markets are trading higher following the broadly positive cues from Wall Street overnight, amid easing concerns about the economic impact of the Omicron variant of the coronavirus. On the economy data front, the Ministry of Internal Affairs and Communications said the unemployment rate in Japan came in at a seasonally adjusted 2.8 percent in November. Meanwhile, the Ministry of Economy, Trade and Industry said industrial production in Japan climbed a seasonally adjusted 7.2 percent on month in November.

Back home, textile industry stocks were in focus as the government is sticking to its decision to implement uniform goods and services tax (GST) rate at 12% on manmade fibre (MMF), MMF yarn, MMF fabrics and apparel from January 1, 2022, despite demands from traders and states. In scrip specific development, Granules India traded higher as the US FDA approved the Abbreviated New Drug Application (ANDA) filed by Granules Pharmaceuticals, Inc. (GPI), a wholly owned foreign subsidiary of Granules India, for Prazosin Hydrochloride Capsules, USP 1mg, 2mg & 5mg.  Besides, Supriya Lifescience shares will make their stock market debut later in the day.

The BSE Sensex is currently trading at 57763.24, up by 343.00 points or 0.60% after trading in a range of 57688.83 and 57876.84. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.83%, while Small cap index was up by 1.17%.

The top gaining sectoral indices on the BSE were Realty up by 1.26%, Capital Goods up by 1.23%, Industrials up by 1.17%, IT up by 0.94%, Basic Materials up by 0.93%, while there was no loser.

The top gainers on the Sensex were Asian Paints up by 1.84%, Larsen & Toubro up by 1.07%, HCL Technologies up by 1.07%, NTPC up by 1.03% and Infosys up by 0.95%. On the flip side, Dr. Reddy's Lab down by 0.51%, Indusind Bank down by 0.16% and ICICI Bank down by 0.03% were the few losers.

Meanwhile, amid robust external demand for goods, the Commerce and industry ministry data has showed that India’s exports rose by 36.2 per cent to $23.8 billion during the first three weeks of December 2021 (during December 1-21), over the same period of 2020-21 ($17.49 billion). It was up by 27.70 per cent over the same period of 2019-20 ($18.65 billion).

Export of other items, excluding petroleum oil and lubricants, increased more than 28 per cent (December 1-21) over the same period of 2021 as well as 2020 and 2019. According to data, the value of exports grew by over a fourth to $7.36 billion during the third week of December as compared to the same time period of 2021. It was up 15.4 per cent during the same time period in 2020.

The pace of growth in exports was slower in November. Exports growth fell to 26.49 per cent in November from 43.05 per cent in the previous month. In terms of absolute value, it fell to $29.8 billion, the lowest in nine months. Besides, India aims to achieve a target of $400 billion in the current fiscal year, and has met nearly two-thirds of its annual export target during April-November.

The CNX Nifty is currently trading at 17180.45, up by 94.20 points or 0.55% after trading in a range of 17163.65 and 17220.70. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 1.93%, Asian Paints up by 1.82%, Adani Ports & SEZ up by 1.72%, Coal India up by 1.30% and Larsen & Toubro up by 1.27%. On the flip side, ICICI Bank down by 0.18%, Dr. Reddy's Lab down by 0.05% and Indusind Bank down by 0.04% were the few losers.

Asian markets are trading mostly in green; Nikkei 225 surged 322.20 points or 1.12% to 28,998.66, Straits Times rose 16.65 points or 0.54% to 3,120.89, Taiwan Weighted jumped 114.61 points or 0.63% to 18,163.55, KOSPI added 5.26 points or 0.18% to 3,004.81 and Jakarta Composite advanced 26.60 points or 0.40% to 6,602.04. On the other hand, Hang Seng fell 11.87 points or 0.05% to 23,211.89 and Shanghai Composite was down by 5.65 points or 0.16% to 3,610.32.