Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the noon session due to buying in IT, TECK, and telecom stocks. Buying in frontline stocks such as Tech Mahindra, HCL Tech and NTPC were aiding sentiment, while selling in Axis Bank, SBI and Reliance Industries kept the gains in the markets in check. Sentiment perked up as the Federation of Indian Export Organisations (FIEO) said the country's exports are expected to register healthy growth rate in the financial year 2022-23 and might touch $530 billion as exporters are flushed with orders. It added that additional exports will come from some of the PLI (production-linked incentive) sectors in the next fiscal. However, upside remain capped as authorities in various parts of India said the third wave of infections has begun. Virus cases more than doubled in Delhi and Mumbai in a single day, forcing the governments to enforce more restrictions. On the global front, Asian markets were trading mostly lower as worries over new lockdowns in the wake of resurgence in covid-19 and its impact on global economic health pressured investments.

The BSE Sensex is currently trading at 57898.32, up by 91.83 points or 0.16% after trading in a range of 57578.99 and 58010.03. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index lost 0.29%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were IT up by 1.16%, TECK up by 1.08%, Telecom up by 0.74%, Healthcare up by 0.44% and FMCG was up by 0.24%, while Oil & Gas down by 0.84%, Energy down by 0.65%, Realty down by 0.59%, Auto down by 0.58% and PSU was down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.71%, HCL Tech up by 2.05%, NTPC up by 1.75%, Wipro up by 1.66% and TCS was up by 1.00%. On the flip side, Bajaj Finserv down by 1.44%, Axis Bank down by 0.78%, SBI down by 0.62%, Reliance Industries down by 0.58% and Tata Steel was down by 0.54% were the top losers.

Meanwhile, Reserve Bank of India (RBI) in its financial stability report has said that private cryptocurrencies pose immediate risks to customer protection and anti-money laundering (AML)/combating the financing of terrorism (CFT). It also observed that Cryptocurrencies are also prone to frauds and to extreme price volatility, given their highly speculative nature. It also noted that the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated risks.

According to the report, longer-term concerns relate to capital flow management, financial and macro-economic stability, monetary policy transmission and currency substitution. New illicit financing typologies continue to emerge, including the increasing use of virtual-to-virtual layering schemes that attempt to further muddy transactions in a comparatively easy, cheap and anonymous manner.

The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was included in the Lok Sabha Bulletin-Part II for introduction in the Winter Session of Parliament that concluded on December 22. According to the bulletin, the bill, which could not be introduced, sought to create a facilitative framework for the creation of the official digital currency to be issued by the RBI.

The CNX Nifty is currently trading at 17232.50, up by 18.90 points or 0.11% after trading in a range of 17146.35 and 17264.05. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.64%, HCL Tech up by 2.04%, NTPC up by 1.62%, Wipro up by 1.61% and Cipla was up by 0.98%. On the flip side, Bajaj Auto down by 1.91%, Bajaj Finserv down by 1.50%, Coal India down by 1.29%, Indian Oil Corporation down by 1.12% and Tata Motors was down by 1.09% were the top losers.

Asian markets were trading mostly lower; Jakarta Composite lost 2.36 points or 0.04% to 6,598.32, Hang Seng decreased 57.66 points or 0.25% to 23,028.88, KOSPI fell 15.64 points or 0.52% to 2,977.65, Nikkei 225 slipped 115.17 points or 0.4% to 28,791.71, Taiwan Weighted dropped 29.44 points or 0.16% to 18,218.84 and Straits Times was down by 6.51 points or 0.21% to 3,131.51. On the other hand; Shanghai Composite was up by 21.33 points or 0.59% to 3,618.33.