Markets trim gains; continue to trade in green

The local equity benchmarks trimmed their gains in late afternoon session and continue to trade above the neutral lines. The budget focused on holistic growth and recovery of the economy, including focus on infrastructure, green energy and climate change, support for MSMEs and Covid-hit sectors like hospitality and digitization supported markets sentiments. However, markets trimmed some of their gains as traders were worried as Indian manufacturing activity fell in the month of January, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 54.0 in January from 55.5 in December.

On the global front, Asian market were trading higher on limited trade following another strong lead from Wall Street fuelled by a rebound in tech firms, while comments from Federal Reserve officials eased concerns that it will embark on an aggressive phase of policy tightening. Back on street, the overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1917:1342; while 115 shares remained unchanged.

The BSE Sensex is currently trading at 58379.62, up by 365.45 points or 0.63% after trading in a range of 58242.44 and 59032.20. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.17%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were Metal up by 2.05%, Basic Materials up by 1.37%, Healthcare up by 1.24%, Capital Goods up by 1.24% and FMCG was up by 0.97%, while PSU down by 1.47%, Auto down by 1.23%, Oil & Gas down by 1.14%, Telecom down by 0.49% and Energy was down by 0.42% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 5.67%, Tata Steel up by 3.65%, Indusind Bank up by 3.07%, Ultratech Cement up by 3.06% and Larsen & Toubro was up by 1.88%. On the flip side, SBI down by 2.54%, Maruti Suzuki down by 1.50%, Mahindra & Mahindra down by 1.21%, Power Grid down by 1.18% and Bharti Airtel was down by 0.87% were the top losers.

Meanwhile, Indian manufacturing activity fell in the month of January, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 54.0 in January from 55.5 in December.

The report further noted that companies scaled up production in January, amid reports of robust gains in new business. The upturn was marked in the context of historical data, despite easing to the slowest since September 2021. Growth was reportedly stymied by raw material scarcity, inflationary pressures and the intensification of the pandemic.

Similarly, factory orders rose at the slowest rate in four months but one that outpaced its long-run average. International sales likewise increased at a weaker pace. Tamed business optimism contributed to another monthly decline in manufacturing jobs. The fall was modest, but quickened from December. Several companies indicated that workforce numbers were sufficient to cope with current production requirements.

On the price front, there was a further substantial increase in input costs facing goods producers. The overall rate of inflation eased to a four-month low, but remained above its long-run average. Output charges were raised at a quicker rate than in December, albeit one that was moderate overall.

The CNX Nifty is currently trading at 17429.40, up by 89.55 points or 0.52% after trading in a range of 17392.85 and 17622.40. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 5.72%, Tata Steel up by 3.54%, Ultratech Cement up by 3.15%, Indusind Bank up by 3.02% and Britannia Inds was up by 2.87%. On the flip side, BPCL down by 4.21%, Indian Oil Corporation down by 3.55%, Tata Motors down by 3.02%, SBI down by 2.43% and Maruti Suzuki was down by 1.82% were the top losers.

In the Asian markets, Nikkei 225 was up by 76.50 points or 0.28% to 27,078.48.