Sensex, Nifty remain higher

In a highly volatile session, Indian equity benchmarks were trading in green terrain during late morning session, with both Sensex and Nifty holding notable gains, despite negative cues from other Asian markets. Traders were positive, as Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said that strong demand and healthy order books will further help in boosting the country's exports in the coming months. Besides, the Reserve Bank of India (RBI) notified the market making scheme to promote retail participation in government securities by providing prices/quotes to retail direct gilt (RDG) account holders enabling them to buy and sell securities under the RBI Retail Direct Scheme.

On the global front, Asian markets were trading mostly in red, after the private sector in Hong Kong continued to expand in December, albeit at a slower rate, the latest survey from Markit Economics showed on Wednesday with a PMI score of 50.8. That's down from 52.6 in November, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The BSE Sensex is currently trading at 59976.27, up by 120.34 points or 0.20% after trading in a range of 59661.38 and 60027.76. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23%, while Small cap index was up by 0.02%.

The top gaining sectoral indices on the BSE were Bankex up by 1.83%, Metal up by 1.21%, Basic Materials up by 0.73%, Oil & Gas up by 0.64% and PSU up by 0.50%, while IT down by 1.92%, TECK down by 1.66%, Power down by 0.57%, Utilities down by 0.41% and Energy down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 5.24%, Bajaj Finance up by 4.18%, Kotak Mahindra Bank up by 2.53%, Axis Bank up by 2.17% and Asian Paints up by 1.92%. On the flip side, Tech Mahindra down by 2.65%, Infosys down by 2.42%, Wipro down by 2.05%, HCL Tech down by 1.76% and TCS down by 1.33% were the top losers.

Meanwhile, Ratings agency ICRA in its latest report has said that the Indian pharma industry is estimated to grow at 9-11 per cent in 2021-22 and in the next few quarters, supported by gradual recovery post the impact of COVID-19. In a sample of 21 Indian pharmaceutical companies, it said revenue growth was moderate at 6.4 per cent in the second quarter of FY22, down from 16 per cent in the first quarter of 2021-22.

According to the report, the normalisation of the base and pricing pressures in the US market were the major reasons for slowing growth momentum in Q2 FY22, even as growth under domestic and emerging markets remained healthy. In FY22, the sample set is estimated to have witnessed growth of 13-15 per cent in the domestic market, 14-16 per cent in the emerging markets and 9-11 per cent in the European business. In the domestic market, it said a combination of steady normalisation in hospital footfalls and field force operations, given the relatively lower restrictions on account of COVID-19, continued traction in acute therapies and better pricing supported healthy revenue growth across companies.

Going forward, the ratings agency said sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables. It said the outlook for the pharma sector remains stable led by healthy revenue growth and margins. It expects the sample set's capital structure and coverage indicators to remain comfortable despite higher capex and R&D (research and development) expenses given the robust cash levels.

The CNX Nifty is currently trading at 17840.90, up by 35.65 points or 0.20% after trading in a range of 17748.85 and 17854.10. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 4.73%, Bajaj Finance up by 4.07%, JSW Steel up by 2.48%, Kotak Mahindra Bank up by 2.40% and Axis Bank up by 2.12%. On the flip side, Tech Mahindra down by 2.70%, Infosys down by 2.45%, Wipro down by 1.85%, HCL Tech. down by 1.47% and Tata Consumer Products down by 1.37% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 197.01 points or 0.85% to 23,092.83, Taiwan Weighted dropped 57.12 points or 0.31% to 18,469.23, KOSPI fell 50.55 points or 1.69% to 2,938.69, Jakarta Composite lost 33.34 points or 0.5% to 6,662.03, Shanghai Composite declined 29.59 points or 0.81% to 3,602.74 and Straits Times trembled 11.89 points or 0.37% to 3,169.24. On the flip side, Nikkei 225 was up by 1.52 points or 0.01% to 29,303.31.