Benchmarks continue to trade with significant gains in morning deals

Indian equity benchmarks continued to trade with significant gains in morning deals, with support from positive global markets and on the back of broad-based buying. Sentiments remained up-beat with Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka stating that the Council is looking at new markets such as Latin America, Australia, and Israel to push the country's apparel exports, which are expected to record healthy growth during the current fiscal and in 2022-23, even though rising raw material prices are impacting the industry. Traders also took a note of data from the commerce ministry showing that India's exports to China have increased about 34 per cent to $22.9 billion in 2021 from $17.1 billion in 2019. Imports, on the other hand, rose 28 per cent to $87.5 billion in 2021 as against $68.4 billion in 2019.  On the sectoral front, fertilizer industry stocks remained in watch with a report that India is likely to set aside about 3 trillion rupees ($40 billion) on food and fertiliser subsidies in its budget next week for 2022/23, roughly the same amount the government budgeted for this fiscal year ending in March. 

On the global front, Asian markets are trading in green following the broadly positive cues from Wall Street on Friday. However, data from the National Bureau of Statistics (NBS) showed China’s factory activity slowed in January as a resurgence of COVID-19 cases and tough lockdowns hit production and demand. The official manufacturing Purchasing Manager's Index (PMI) registered 50.1 in January, remaining above the 50-point mark that separates growth from contraction, but slowing from 50.3 in December.

The BSE Sensex is currently trading at 58026.07, up by 825.84 points or 1.44% after trading in a range of 57746.15 and 58069.13. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.46%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were IT up by 2.80%, Realty up by 2.79%, TECK up by 2.62%, Oil & Gas up by 2.59% and Energy up by 2.49%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.72%, Wipro up by 3.30%, Infosys up by 3.16%, Dr. Reddy's Lab up by 2.89% and HCL Technologies up by 2.71%. On the flip side, Indusind Bank down by 2.88% and Kotak Mahindra Bank down by 1.75% were the top losers.

Meanwhile, investments in Indian capital through participatory notes (P-notes) rose to Rs 95,501 crore till December-end and experts believe that flow is expected to be flat to negative next month. According to Securities and Exchange Board of India data, the value of P-note investments in Indian markets -- equity, debt and hybrid securities -- was at Rs 95,501 crore by December-end as compared to Rs 94,826 by November-end.

Prior to that, investment level was at Rs 1.02 lakh crore in October end, which was the highest since March 2018, when P-notes had invested to the tune of Rs 1.06 lakh crore.

P-notes are issued by registered foreign portfolio investors (FPIs) to overseas investors who wish to be a part of the Indian stock market without registering themselves directly. They, however, need to go through a due diligence process.

The CNX Nifty is currently trading at 17347.95, up by 246.00 points or 1.44% after trading in a range of 17269.20 and 17361.65. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.58%, BPCL up by 3.61%, Wipro up by 3.26%, Infosys up by 3.13% and Indian Oil Corporation up by 3.06%. On the flip side, Indusind Bank down by 2.72% and Kotak Mahindra Bank down by 1.76% were the top losers.

Asian markets are trading in green; Nikkei 225 surged 293.53 points or 1.1% to 27,010.87, Hang Seng increased 252.18 points or 1.07% to 23,802.26, Straits Times advanced 3.26 points or 0.1% to 3,249.59 and Jakarta Composite soared 2.91 points or 0.04% to 6,648.42.