Key indices continue to trade higher in morning deals

Indian equity benchmarks continued to trade higher in morning deals, tracking strong gains in other Asian markets. The sentiments also buoyed by expectations of a good quarterly earnings season. Traders took some support as the World Bank in its latest Global Economic Prospects report retained India’s gross domestic product (GDP) growth forecast at 8.3 percent for current fiscal year 2021-22 (FY22) as what was stated in its last projection released in October 2021. Traders overlooked a domestic rating agency ICRA’s report stated that lockdowns to contain the spread of the third COVID wave hurt loan collections and new lending by non-banks, and will in turn impact securitization volumes. Sectorally, road sector stocks remained in focus as rating agency Icra said that high Wholesale Price Index (WPI) inflation is a blessing in disguise for toll road projects as toll collections are set to witness 14-15 per cent growth in 2022-23. On the global front, Asian markets were trading in green following the broadly positive cues overnight from Wall Street, with gains across most sectors as traders digested Fed Chair Powell's comments, even as concerns about the impact of the rapid spread of the coronavirus Omicron variant remain.

The BSE Sensex is currently trading at 61064.82, up by 447.93 points or 0.74% after trading in a range of 60850.93 and 61070.43. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Realty up by 2.25%, Utilities up by 1.51%, Power up by 1.47%, Energy up by 1.31% and Metal up by 1.16%, while Healthcare down by 0.13% and Consumer Durables down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.23%, Bajaj Finserv up by 2.02%, Kotak Mahindra Bank up by 1.89%, Reliance Industries up by 1.63% and ICICI Bank up by 1.49%. On the flip side, Titan Co down by 1.12%, Tech Mahindra down by 0.79%, TCS down by 0.75%, HCL Technologies down by 0.52% and Dr. Reddy's Lab down by 0.41% were the top losers.

Meanwhile, Former chief economic adviser (CEA) Arvind Virmani has said the Indian economy may register a growth of 9.5 per cent in this financial year (FY22). He stated that government expenditure and exports have peaked, but so far private consumption has not recovered due to the COVID-19 pandemic.

He mentioned the current financial year's growth will be higher and close to 9.5 per cent. And this decade's (FY21-FY30) average growth will be 7.5 per cent plus minus 0.5 per cent. He said that India's GDP growth is now positive, but job growth is lagging.

Besides, stressing that Micro Small and Medium Enterprises (MSMEs) are critical for inclusive growth, he said that modern MSMEs should have full opportunity to compete with the corporate sector. He noted that COVID-19 pandemic hit economic recovery and pushed for tax reforms. He also said GST council seems focused on short-term revenue maximization. Moreover, he added revenue negative GST simplification needed to provide a consumption stimulus to the economy, and quickly restore lost jobs and wages.

The CNX Nifty is currently trading at 18183.45, up by 127.70 points or 0.71% after trading in a range of 18128.80 and 18184.95. There were 39 stocks advancing against 11 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.48%, Hindalco up by 2.07%, Bajaj Finserv up by 2.04%, Kotak Mahindra Bank up by 2.01% and Reliance Industries up by 1.61%. On the flip side, Titan Company down by 1.20%, Cipla down by 0.91%, TCS down by 0.74%, Divi's Lab down by 0.69% and Tech Mahindra down by 0.61% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 501.26 points or 1.78% to 28,723.74, Taiwan Weighted strengthened 6.85 points or 0.04% to 18,295.06, Jakarta Composite soared 11.65 points or 0.18% to 6,659.62, Shanghai Composite gained 12.49 points or 0.35% to 3,579.93, KOSPI rose 41.16 points or 1.41% to 2,968.54, Straits Times advanced 3.26 points or 0.1% to 3,249.63 and Hang Seng increased 502.09 points or 2.12% to 24,241.15.