Domestic indices trade in fine-fettle in early deals

Indian equity benchmarks made gap-up opening on Wednesday tracking firm global cues. Domestic indices are trading in fine-fettle in early deals with notable gains on account of board bases buying. Sentiments got a boost as Chief Economic Adviser V Anantha Nageswaran expressed hope that India would become a $5 trillion economy by FY26 or the next year on the back of 8-9 per cent sustained growth. He added gross domestic product (GDP) in dollar terms has already crossed $3 trillion. Some support also came in as provisional data of the commerce ministry showed that the country's exports rose by 23.69 per cent to $34.06 billion in January on healthy performance by engineering, petroleum and gems and jewellery segments even as trade deficit widened to $17.94 billion during the month. Traders took note of report that Commerce and industry minister Piyush Goyal said his ministry is in talks with the finance ministry to allow firms in the special economic zones (SEZs) to sell goods in the domestic market by paying just an equalisation levy.

Asian markets are trading higher in thin trading with most of the markets in the region closed for Lunar New Year holidays, including South Korea, Malaysia, Singapore, Taiwan, China and Hong Kong, following the broadly positive cues overnight from Wall Street. Meanwhile, lingering concerns about the impact of the rapid spread of the coronavirus Omicron variant remain. Tokyo and 33 of the 47 prefectures have been placed under a quasi-state of emergency last week. Back home, aviation industry stocks were in focus as Jet fuel price rose to record levels across the country following a steep 8.5 per cent hike necessitated due to a spike in international oil prices. In scrip specific development, Adani Ports traded in red as it reported a 6.2% YoY decline in Q3 net profit at Rs 1,478.76 crore as against Rs 1,576.73 crore in the corresponding quarter a year ago.

The BSE Sensex is currently trading at 59327.26, up by 464.69 points or 0.79% after trading in a range of 59193.05 and 59389.74. 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 1.08%, while Small cap index was up by 1.34%.

The top gaining sectoral indices on the BSE were Telecom up by 1.36%, Bankex up by 1.34%, Auto up by 1.20%, Healthcare up by 1.09%, Consumer discretionary up by 1.01%, while there was no loser on BSE sectoral front.

The top gainers on the Sensex were Bajaj Finserv up by 2.93%, Indusind Bank up by 2.86%, Bajaj Finance up by 2.78%, Kotak Mahindra Bank up by 2.47% and Axis Bank up by 1.90%. On the flip side, Tech Mahindra down by 3.34% and Hindustan Unilever down by 0.08% were the only losers.

Meanwhile, with sustained growth of 8-9 per cent, Chief Economic Adviser V Anantha Nageswaran has expressed hope that India would become a $5 trillion economy by FY26 or the next year. He added that gross domestic product (GDP) in dollar terms has already crossed $3 trillion.

He noted that ‘Depending on how exchange rate move...Indian Rupee would remain stable to strong given what is going on the developed world. If we continue to retain the path of 8-9 per cent real GDP, it would translate into 8 per cent dollar GDP growth. If we extrapolate that we should be at the $5 trillion by 2025-26 or 2026-27’.

Meanwhile, Indian economy is estimated to grow at 9.2 per cent during the current fiscal while 8-8.5 per cent for the next financial year. Prime Minister Narendra Modi in 2019 envisioned making India a $5 trillion economy and a global economic powerhouse by 2024-25. With this, India would become the third largest economy in the world.

The CNX Nifty is currently trading at 17735.40, up by 158.55 points or 0.90% after trading in a range of 17674.80 and 17736.80. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 3.57%, Bajaj Finserv up by 3.25%, Bajaj Finance up by 3.18%, Indusind Bank up by 2.72% and Kotak Mahindra Bank up by 2.61%. On the flip side, Tech Mahindra down by 2.92%, Britannia Industries down by 0.74%, Tata Consumer Products down by 0.05% and Hindustan Unilever down by 0.04% were the few losers.

Asian markets traded in green in thin trade; Nikkei 225 surged 451.58 points or 1.67% to 27,530.06 and Jakarta Composite jumped 74.38 points or 1.12% to 6,705.53.