Markets add more points in late afternoon session

Frontline equity indices enticing some more traction and added more points on the streets on the back of solid gains in financial shares and select index heavyweights. Among financials, the Bajaj twins - Bajaj Finserv and Bajaj Finance were the top gainers on the BSE, up above 3.54 per cent and 3.27 per cent, respectively. Axis Bank, HDFC Bank and ICICI Bank were up above 2 per cent each. Traders remained optimistic after growth of eight core infrastructure industries grew 3.1 percent in November 2021 as against 1.1 percent contraction in same month last year. In October 2021, these core sectors' output had grown by 8.4 percent. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity - comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

On the global front, Asian markets were trading mostly in green on the first trading day of 2022 even after regional markets including China and Japan closed for holidays. European markets were trading mostly in green, as manufacturing activity in the euro zone remained resilient at the end of 2021 as factories took advantage of an easing in supply chain bottlenecks and stocked up on raw materials at a record pace.

The BSE Sensex is currently trading at 59166.52, up by 912.70 points or 1.57% after trading in a range of 58306.45 and 59168.18. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.21%, while Small cap index was up by 1.31%.

The top gaining sectoral indices on the BSE were Bankex up by 2.32%, Capital Goods up by 1.67%, Auto up by 1.62%, Realty up by 1.50% and PSU was up by 1.48%, while Healthcare was down by 0.12% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.54%, Bajaj Finance up by 3.27%, ICICI Bank up by 2.97%, HDFC Bank up by 2.48% and Axis Bank up by 2.39%. On the flip side, Dr. Reddy's Lab down by 0.90%, Mahindra & Mahindra down by 0.45%, Tech Mahindra down by 0.10% and Nestle down by 0.10% were the top losers.

Meanwhile, Indian manufacturing activity fell in the month of December, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 55.5 in December from November's ten-month high of 57.6.

The report further noted that companies continued with their stock-building initiatives, as evidenced by another robust upturn in buying levels. Business confidence strengthened, but sentiment was again dampened by concerns surrounding supply-chain disruptions, COVID-19 and inflationary pressures.

According to the report, spending trends were mixed, with employment falling fractionally in response to a lack of pressure on capacity, but firms purchasing additional inputs amid restocking efforts. Buying levels increased substantially in the latest month.

On the inflation front, the rate of inflation eased to a three-month low, but remained sharp and above its long-run average. Besides, output charges rose as some companies transferred higher cost burdens through to clients, but the overall rate of inflation was only slight and the weakest since October 2020.

The CNX Nifty is currently trading at 17624.90, up by 270.85 points or 1.56% after trading in a range of 17383.30 and 17625.70. There were 44 stocks advancing against 6 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.24%, Coal India up by 4.83%, Bajaj Finserv up by 3.56%, Tata Motors up by 3.52% and Bajaj Finance up by 3.32%. On the flip side, Cipla down by 1.41%, Dr. Reddy's Lab down by 0.89%, Divi's Lab down by 0.50%, Mahindra & Mahindra down by 0.40% and Nestle down by 0.07% were the top losers.

Asian markets were trading mostly in green, Jakarta Composite soared 83.83 points or 1.27% to 6,665.31, Taiwan Weighted strengthened 51.67 points or 0.28% to 18,270.51, KOSPI rose 11.12 points or 0.37% to 2,988.77 and Straits Times was up by 11.00 points or 0.35% to 3,134.68. On the flip side, Hang Seng was down by 122.92 points or 0.53% to 23,274.75.

European markets were trading in green, France’s CAC increased 68.37 points or 0.96% to 7,221.40 and Germany’s DAX was up by 147.85 points or 0.93% to 16,032.71.