Domestic bourses maintain momentum

Indian stock markets continued to trade in positive terrain in the noon session due to buying in Bankex, Metal and Oil & Gas stocks. Buying in frontline stocks such as Bajaj Finserv, Bajaj Finance and Kotak Mahindra Bank were aiding sentiment, while selling in Tech Mahindra, Infosys and Wipro kept the gains in the markets in check. Sentiments got boost with State Bank of India’s former chairman Rajnish Kumar stated that country needs to accelerate economic growth to above eight per cent to achieve its target of becoming a $5-trillion economy by 2025. However, upside remain capped as India’s services sector activity moderated to a three month low in December with many states imposing night curfews ahead of the Christmas season to curb the spread of Omicron. Data released by the analytics firm IHS Markit showed that the Purchasing Managers’ Index (PMI) for services fell to 55.5 in December from 58.1 in November. A reading above 50 indicates expansion in economic activity and a number below that signals contraction.

On the global front, Asian markets were trading mostly lower following a tepid lead from Wall Street, with inflation and expected interest rate hikes returning to the key focus of concerns as Omicron fears fade for now. Back home, in scrip specific development, Thermax surged on winning Rs 546 crore order to set-up two FGD systems and Talbros Automotive jumped as Vijay Kedia increases stake.

The BSE Sensex is currently trading at 60033.79, up by 177.86 points or 0.30% after trading in a range of 59661.38 and 60036.13. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.28%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were Bankex up by 1.83%, Metal up by 1.25%, Oil & Gas up by 0.85%, Basic Materials up by 0.81% and Telecom was up by 0.72%, while IT down by 1.78%, TECK down by 1.48%, Power down by 0.60%, Utilities down by 0.42% and Energy was down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 5.13%, Bajaj Finance up by 4.08%, Kotak Mahindra Bank up by 2.53%, Asian Paints up by 2.22% and Axis Bank was up by 2.10%. On the flip side, Tech Mahindra down by 2.65%, Infosys down by 2.37%, Wipro down by 1.60%, HCL Tech down by 1.44% and TCS was down by 1.17% were the top losers.

Meanwhile, automobile dealers' body Federation of Automobile Dealers Associations (FADA) has said that passenger vehicle (PV) retail sales in India witnessed an 11 percent year-on-year decline in December 2021 as semiconductor shortage continued to impact the segment. The PV retail sales fell 10.91 per cent in December 2021 to 2,44,639 units from 2,74,605 units in December 2020.

FADA has stated the month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of the year. However it was not the case this time around as retail sales continued to disappoint, thus wrapping up an underperforming calendar year. It said dealers, however, saw slight ease in vehicle supply, thus giving some hope of improvement.

It further noted that two-wheeler sales also continued to remain in the slow lane last month, with sales of 11,48,732 units, down 19.86 per cent from 14,33,334 units in December 2020. High cost of ownership, bad rural sentiment, work from home and the latest threat of Omicron continued to impact sales. Commercial vehicle retail sales, however, rose 13.72 per cent last month to 58,847 units, as against 51,749 units in December 2020.

The CNX Nifty is currently trading at 17863.15, up by 57.90 points or 0.33% after trading in a range of 17748.85 and 17865.20. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 5.20%, Bajaj Finance up by 4.18%, JSW Steel up by 2.62%, Kotak Mahindra Bank up by 2.55% and Indian Oil Corporation was up by 2.24%. On the flip side, Tech Mahindra down by 2.83%, Infosys down by 2.49%, Wipro down by 1.48%, HCL Tech down by 1.38% and Tata Consumer Products was down by 1.22% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite lost 33.34 points or 0.5% to 6,662.03, KOSPI fell 36.20 points or 1.21% to 2,953.04, Taiwan Weighted dropped 26.39 points or 0.14% to 18,499.96, Straits Times trembled 16.98 points or 0.53% to 3,164.15, Shanghai Composite declined 36.07 points or 0.99% to 3,596.26 and Hang Seng was down by 271.61 points or 1.17% to 23,018.23. On the other hand, Nikkei 225 was up by 30.37 points or 0.1% to 29,332.16.