Markets trade firm in early deals; Realty, Auto lead gainers

Indian equity benchmarks extended their previous session’s gains with optimistic start on Monday following gains in Asian peers. Markets are trading firm in early deals with gains of over half a percent each on account of buying in most of the sector indices led by Realty, Auto and Bankex. Sentiments got a boost as the National Statistical Office (NSO) in its first advance estimate indicated that the Indian economy remains on track to regain its position as the world's fastest-growing major economy and put the GDP expansion at a tempered 9.2 per cent this fiscal. Adding more optimism, an SBI Ecowrap report said India's real GDP is expected to grow at around 9.5 per cent in 2021-22 on a year-on-year (YoY). Besides, foreign investors have turned net buyers in the first week of January by infusing Rs 3,202 crore in Indian equities, as correction in markets provided them good buying opportunity.

Most of the Asian markets are trading higher, despite the broadly negative cues from Wall Street on Friday, as traders continued to pick up stocks at a bargain after the recent sell-off. Meanwhile, traders remain concerned as the Fed will be raising rates at a time of slowing economic growth as a result of the rapidly spreading Omicron variant of the coronavirus. The mood was cautious amid uncertainty about the near term outlook for the market as traders digested the weaker than expected job growth data from the U.S. in the month of December. The Japanese stock market is closed on Monday for Coming of Age day Holiday.

Back home, insurance industry stocks are in limelight with report that after a stellar performance in November - following a poor show in October - the new business premium (NBP) of life insurance companies was largely flat in December. Power stocks were in focus as total outstanding dues owed by electricity distribution companies (discoms) to power producers rose 4.4 per cent year-on-year to Rs 1,21,030 crore in January 2022. In scrip specific development, TCS is trading higher as its board plans to consider a share buyback proposal on January 12 when it meets to announce the Q3 results.

The BSE Sensex is currently trading at 60073.05, up by 328.40 points or 0.55% after trading in a range of 59987.18 and 60241.61. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.40%, while Small cap index was up by 0.77%.

The top gaining sectoral indices on the BSE were Realty up by 1.59%, Auto up by 1.29%, Bankex up by 1.01%, PSU up by 0.84%, Capital Goods up by 0.74%, while Consumer Durables down by 0.06%, Healthcare down by 0.06% were the only losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.08%, ITC up by 2.38%, ICICI Bank up by 1.36%, Axis Bank up by 1.34% and Kotak Mahindra Bank up by 1.23%. On the flip side, Wipro down by 2.21%, HCL Technologies down by 0.64%, Tech Mahindra down by 0.61%, Asian Paints down by 0.59% and Nestle down by 0.41% were the top losers.

Meanwhile, indicating that Indian economy remains on track to regain its position as the world's fastest-growing major economy, the National Statistical Office (NSO) in its first advance estimate has stated that the gross domestic product (GDP) to grow at 9.2 per cent in April 2021 to March 2022 fiscal (FY 2021-22) amid concerns over the impact of a resurgent virus on the fragile recovery. The economy had contracted by 7.3 per cent in the previous financial year.

With 9.2 per cent growth in 2021-22 fiscal, the economy will surpass the pre-COVID level in actual terms, mainly on account of improved performance by farm, mining and manufacturing sectors. As per the report, Real GDP or GDP (gross domestic product) at Constant Prices (2011-12) in the year 2021-22 is estimated at Rs 147.54 lakh crore, as against the Provisional Estimate of GDP for the year 2020-21 of Rs 135.13 lakh crore, released on May 31, 2021.

As per NSO estimates, GDP in actual terms in 2021-22 will surpass the pre-COVID level of Rs 145.69 lakh crore in 2019-20. The pandemic hit the country in March 2020, resulting in a nationwide lockdown from March 25, 2020, which severely dented the economic growth in the 2020-21 fiscal. In the current fiscal, the manufacturing sector is likely to see a growth of 12.5 per cent against a contraction of 7.2 per cent a year ago.

The NSO estimates significant growth in 'mining and quarrying' (14.3 per cent), and 'trade, hotels, transport, communication and services related to broadcasting' (11.9 per cent). The agriculture sector is estimated to see a growth of 3.9 per cent in FY2021-22, higher than the 3.6 per cent expansion recorded in the previous financial year.

The CNX Nifty is currently trading at 17914.05, up by 101.35 points or 0.57% after trading in a range of 17879.15 and 17955.60. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.03%, ITC up by 2.50%, Hero MotoCorp up by 2.19%, UPL up by 1.74% and Bajaj Auto up by 1.34%. On the flip side, Wipro down by 2.25%, Asian Paints down by 0.61%, Shree Cement down by 0.58%, Tech Mahindra down by 0.58% and Dr. Reddy's Lab down by 0.52% were the top losers.

Asian markets are trading mostly in green; Straits Times rose 23.75 points or 0.74% to 3,229.01, Hang Seng surged 190.51 points or 0.81% to 23,683.89, Taiwan Weighted added 17.33 points or 0.10% to 18,187.09 and Shanghai Composite was up by 8.86 points or 0.25% to 3,588.40. On the other hand, KOSPI fell 30.10 points or 1.02% to 2,924.79 and Jakarta Composite was down by 0.22 points to 6,701.10.