Key gauges extend gains in morning deals

Key barometer gauges extended their initial gains in morning deals, amid broad based buying and gains in heavyweights Maruti Suzuki, Infosys and ITC. Investors took encouragement 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 amid concerns over the impact of a resurgent virus on the fragile recovery. The traders were also optimistic with private report stated that the month of December 2021 witnessed signs of revival in hiring activity in multiple sectors beyond IT, such as retail, hospitality and education. Meanwhile, Finance Minister Nirmala Sitharaman has reviewed public sector banks (PSBs) readiness to tackle any possible disruptions due to the Omicron variant and asked lenders to support sectors, besides farm, retail and MSMEs, that face interruption due to COVID. She also reviewed various steps taken by PSBs in implementing pandemic-related measures initiated by the government and RBI. On the global front, Asian markets were trading mostly in green despite concerns that the Fed will be raising rates at a time of slowing economic growth as a result of the Omicron variant of the coronavirus.

The BSE Sensex is currently trading at 60288.41, up by 543.76 points or 0.91% after trading in a range of 59987.18 and 60308.31. 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 0.69%, while Small cap index was up by 1.02%.

The top gaining sectoral indices on the BSE were Auto up by 1.60%, Realty up by 1.39%, Bankex up by 1.29%, TECK up by 1.23% and IT up by 1.20%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.54%, Infosys up by 2.65%, ITC up by 2.17%, Kotak Mahindra Bank up by 1.91% and Axis Bank up by 1.57%. On the flip side, Wipro down by 2.33%, Asian Paints down by 0.94%, Nestle down by 0.62%, Dr. Reddy's Lab down by 0.54% and Hindustan Unilever down by 0.25% were the top losers.

Meanwhile, the Confederation of All India Traders (CAIT) has said increase in Covid cases along with imposition of various restrictions by different states have had an adverse impact on business and economic activities across the country. CAIT mentioned the situation has led business of various verticals of goods to go down by an average of 45 per cent in the last 10 days.

Moreover, it expects a major business decline during the wedding season. it said  during the wedding season, which will start on the day of Makar Sankranti on January 14 and go on for two-and-a-half months, business of about Rs 4 lakh crore was expected. It added ‘But due to the various restrictions imposed by the state governments across the country, a steep drop is seen in the business of nearly about 75 per cent.’ It stated ‘Now it is estimated that in the next two-and-a-half months, there is a possibility of about Rs 1.25 lakh crore only in this business vertical.’

It also urged the Central government and the chief ministers to take all possible steps to prevent further Covid spread. Besides, it cited the double whammy of lower intra-regional trade due to the restrictions and subdued local buyers' sentiments. The main reason for this decline is the panic among the people due to the third wave of Corona.

The CNX Nifty is currently trading at 17972.55, up by 159.85 points or 0.90% after trading in a range of 17879.15 and 17978.15. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 3.52%, UPL up by 2.72%, Infosys up by 2.64%, Hero MotoCorp up by 2.32% and ITC up by 2.24%. On the flip side, Wipro down by 2.41%, Asian Paints down by 0.97%, Shree Cement down by 0.63%, Nestle down by 0.59% and Divi's Lab down by 0.57% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 193.72 points or 0.82% to 23,687.10, Taiwan Weighted strengthened 61.33 points or 0.34% to 18,231.09, Straits Times advanced 23.79 points or 0.74% to 3,229.05, Jakarta Composite soared 15.56 points or 0.23% to 6,716.88 and Shanghai Composite gained 8.86 points or 0.25% to 3,588.40.

On the flip side, KOSPI fell 27.22 points or 0.92% to 2,927.67.