Firm trade continues over Dalal Street

Firm trade continued over the Dalal Street in late morning session, with both Sensex and Nifty trading on a strong note. Positive cues from other Asian markets helped key indices to remain higher. Traders remained optimistic, as the outlook for India's manufacturing sector seems to have improved in the October-December 2021 quarter even as the cost of doing business remains a cause for concern and hiring prospects remain subdued, according to a FICCI survey. Besides, ahead of the Union Budget 2022-23, industry body CII pitched for additional incentive rates to be included in the Production Linked Incentive Schemes based on the number of jobs created.

On the global front, Asian markets were trading in green, after industrial production in Japan gained 2.7 percent on year in December. The Ministry of Economy, Trade and Industry said that was shy of expectations for an increase of 3 percent and down from 5.1 percent in November. On a seasonally adjusted monthly basis, industrial production sank 1.0 percent - again missing forecasts for a drop of 0.8 percent following the 7.0 percent spike in the previous month.

The BSE Sensex is currently trading at 57948.88, up by 748.65 points or 1.31% after trading in a range of 57746.15 and 58069.13. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.49%, while Small cap index was up by 0.94%.

The top gaining sectoral indices on the BSE were Realty up by 2.80%, IT up by 2.59%, TECK up by 2.45%, Oil & Gas up by 2.31% and Energy up by 2.31%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 4.43%, Wipro up by 3.13%, Dr. Reddy's Lab up by 3.02%, Infosys up by 2.95% and Reliance Industries up by 2.42%. On the flip side, Indusind Bank down by 3.24%, Kotak Mahindra Bank down by 2.39% and Hindustan Unilever down by 0.04% were the top losers.

Meanwhile, Apparel Export Promotion Council (AEPC) Chairman Narendra Goenka has said 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.

Goenka said the Council is also engaging actively with Indian missions abroad to explore export opportunities for the sector. He said ‘we are expecting to touch about $16.5 billion worth of exports in 2021-22 and $19 billion in 2022-23. We are on the cusp of good growth in apparel. We are also trying to create a brand India image for sustainable growth.’

AEPC Chairman has stated that the production-linked incentive (PLI) schemes for man-made fibers and technical textiles will help attract investments and will push domestic manufacturing and in turn exports from the country. He said free-trade agreements, when implemented, with countries like the UK and the UAE will further help in boosting exports. However, he said the biggest challenge being faced at present by the sector is rising prices of raw materials.

The CNX Nifty is currently trading at 17327.00, up by 225.05 points or 1.32% after trading in a range of 17264.15 and 17361.65. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.54%, BPCL up by 3.71%, Wipro up by 3.09%, Dr. Reddy's Lab up by 3.05% and Infosys up by 2.92%. On the flip side, Indusind Bank down by 3.31%, Kotak Mahindra Bank down by 2.50%, HDFC Life Insurance down by 0.44% and Hindustan Unilever down by 0.13% were the top losers.

Asian markets were 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.