Indices maintain healthy gains in late afternoon session

Key benchmark indices maintained healthy gains in late afternoon session. Gains across sectors, led by Basic Materials, metal and consumer stocks, pushed the headline indices higher. India VIX was down by 1.26%. The broader indices, the BSE Mid cap index and Small cap index were also continued firm trade. Sentiments remained upbeat after India’s agricultural and processed food exports have grown at a steady pace in the last decade notwithstanding several logistical challenges faced in the global trade of the commodities. Exports of agricultural and processed food products under Agricultural and Processed Food Products Export Development Authority (APEDA) basket rose to $20,674 million (Rs 15,30,50 crore) during 2020-21, from $17,321 million (Rs 83,484 crore) in 2011-12. In scrip specific development, CMS Info Systems has debuted at Rs 218.50 on the BSE, up by 2.50 points or 1.16% from its issue price of Rs 216.

On the global front, Asian markets were trading mostly in green in a thin holiday trade ahead of the New Year. European markets were trading in red with U.S. index futures on the last trading day of the year. Treasury yields and the dollar were steady.

The BSE Sensex is currently trading at 58275.21, up by 480.89 points or 0.83% after trading in a range of 57846.52 and 58409.30. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.22%, while Small cap index was up by 0.97%.

The top gaining sectoral indices on the BSE were Metal up by 2.14%, Consumer Durables up by 1.92%, Basic Materials up by 1.80%, Telecom up by 1.53% and Auto was up by 1.40%, while there were no losers on sectoral indices on the BSE.

The top gainers on the Sensex were Titan Company up by 3.38%, Ultratech Cement up by 2.41%, Kotak Mahindra Bank up by 2.23%, Maruti Suzuki up by 1.92% and SBI up by 1.70%. On the flip side, NTPC down by 1.81%, Tech Mahindra down by 0.72%, Power Grid down by 0.34%, Infosys down by 0.15% and Dr. Reddy's Lab down by 0.00% were the top losers.

Meanwhile, credit rating agency India Ratings and Research (Ind-Ra) in its latest report has showed that the all-India energy demand increased just 1.7% yoy to 99.6 billion units (BU) in November 2021, due to the onset of the winter season, impacting the demand from the northern region (up 2% yoy) and southern region (down 5% yoy).

According to the report, the reduction in the energy demand in November 2021 is also attributable to lower generation, as reflected in an increase in the power outages at thermal power plants due to coal shortages. Additionally, the all-India energy demand for the first 25 days of December improved 3.5% yoy to 88.7BU.

The report further noted that the total all-India generation increased marginally by 2% to 99.4BU in November 2021. The overall increase in generation was however supported by a 16.4% yoy increase in the generation from renewable sources and a 16% yoy rise in generation from hydro power sources, whereas the generation from coal-based thermal power plants reduced by 0.3% yoy.

The CNX Nifty is currently trading at 17346.85, up by 142.90 points or 0.83% after trading in a range of 17238.50 and 17400.80. There were 42 stocks advancing against 8 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.45%, Titan Company up by 3.44%, Ultratech Cement up by 2.37%, Kotak Mahindra Bank up by 2.22% and Maruti Suzuki up by 2.06%. On the flip side, NTPC down by 1.81%, Cipla down by 0.92%, Tech Mahindra down by 0.55%, Power Grid down by 0.37% and SBI Life down by 0.37% were the top losers.

Asian markets were trading mostly in green, Shanghai Composite gained 20.59 points or 0.57% to 3,639.78 and Hang Seng was up by 285.66 points or 1.24% to 23,397.67. On the flip side, Straits Times was down by 2.96 points or 0.09% to 3,123.68.

European markets were trading in red, UK’s FTSE 100 decreased 25.40 points or 0.34% to 7,377.61 and France’s CAC was down by 13.61 points or 0.19% to 7,159.62.