Post Session: Quick Review

Bulls strengthened grip on Dalal Street with frontline gauges extending rally for fourth day in a row on Wednesday, as investors hoping Covid-related restrictions to ease sooner-than-expected as Omicron variant looks less sever. Besides, they expect the uncertain global outlook to delay policy tightening by global central banks, keeping liquidity taps running for equity markets. Markets started the session on cautious note as a private report indicated that growth might be impacted by up to 0.30 per cent in the March quarter as normal economic activities come under pressure due to restrictions being imposed by more states to curb rising Omicron cases. However, markets made a recovery to enter into green terrain as traders took some support with Apparel Export Promotion Council (AEPC) Chairman A Sakthivel stating 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.

Markets extended gains in last leg of trade as commerce ministry is planning to launch Brand India Campaign to give momentum to exports of both services and products in new markets, as the country’s outbound shipments all set to cross $400 billion this fiscal year. This campaign would serve as an ‘umbrella campaign’ for promoting goods and services exported by India. Traders shrugged off report that 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, European markets were trading in green as investors weighed the outlook for global inflation against expanded Covid-related curbs. However, Asian markets ended mostly in red as Geopolitical tensions remained in investors' radar after North Korea reportedly fired a suspected ballistic missile off its east coast.

Back home, road sector stocks remained in focus as domestic rating agency ICRA said the Indian road logistic sector is likely to witness healthy growth in FY2022 on the back of demand recovery and improved business activities. Stocks related to pharma industry also remained in limelight with Ratings agency ICRA in its latest report stating 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.

The BSE Sensex ended at 60199.89, up by 343.96 points or 0.57% after trading in a range of 59661.38 and 60332.72. There were 20 stocks advancing against 10 stocks declining on the index. (Provisional)

The broader indices ended mixed; the BSE Mid cap index gained 0.36%, while Small cap index was down by 0.09%. (Provisional)

The top gaining sectoral indices on the BSE were Bankex up by 2.35%, Metal up by 1.60%, Oil & Gas up by 1.50%, Realty up by 1.43% and Basic Materials was up by 1.05%, while IT down by 1.84%, TECK down by 1.50%, Healthcare down by 0.28%, Power down by 0.24% and Consumer Durables down by 0.16% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Bajaj Finserv up by 5.25%, Bajaj Finance up by 4.52%, Kotak Mahindra Bank up by 3.19%, Axis Bank up by 2.61% and Tata Steel up by 2.35%. On the flip side, Infosys down by 2.70%, Tech Mahindra down by 2.66%, HCL Tech down by 1.73%, Wipro down by 1.12% and Dr. Reddy's Lab down by 1.09% were the top losers. (Provisional)

Meanwhile, inviting suggestions from industry leaders to strengthen the textiles sector globally, Union Minister for Textiles, Commerce & Industry and Consumer Affairs and Public Distribution, Piyush Goyal has said that Industry and Government are partners in India’s growth story & now, is the time to be a Global Champion in Textiles by taking up bigger & bolder targets.

Thanking the Pime Minister Narendra Modi and Finance Minister for the decision to defer the increase of tax slab from 5% to 12% for Textiles, taken in the 46th meeting of GST council, Goyal said that this is a New Year gift for the Textile Industry. He added that the requests of industry stakeholders were considered in present challenging times when the sector is on the path of recovery.

The Minister further mentioned that under Prime Minister, the textile sector has received a new boost to achieve Speed, Skill & Scale.  He also said “To make India Aatmanirbhar, we need to make our Artisans, Weavers, Farmers & MSMEs Aatmanirbhar”.

The CNX Nifty ended at 17907.70, up by 102.45 points or 0.58% after trading in a range of 17748.85 and 17944.70. There were 33 stocks advancing against 17 stocks declining on the index. (Provisional)

The top gainers on Nifty were Bajaj Finserv up by 4.95%, Bajaj Finance up by 4.39%, Kotak Mahindra Bank up by 3.46%, JSW Steel up by 3.37% and Grasim Industries up by 3.06%. On the flip side, Tech Mahindra down by 2.84%, Infosys down by 2.69%, HCL Tech down by 1.65%, Divi's Lab down by 1.38% and Power Grid Corporation down by 1.14% were the top losers. (Provisional)

European markets were trading in green, UK’s FTSE 100 increased 20.58 points or 0.27% to 7,525.73, France’s CAC rose 30.04 points or 0.41% to 7,347.45 and Germany’s DAX was up by 83.99 points or 0.52% to 16,236.60.

Most of the Asian markets finished in red on Wednesday, with the risk aversion in the market ahead to the release of the US Federal Reserve's December meeting minutes which might provide clues on Central bank’s interest rate hikes. Asian indices also got saddled with the hefty sell off in technological sector stocks in line with US tech shares. Meanwhile, accelerating covid-19 cases also dulled investors' sentiments. Heng seng stocks eased as investors got wary of huge tech sell off amidst several recent billion-dollar divestment plans of Tencent Holdings. China’s Shanghai also settled negative after the country's top market regulator imposed fines against Alibaba, Tencent Holdings and Bilibili Inc for failing to properly report about a dozen deals.