Jubilation continues on Dalal Street; Sensex reclaims 56,100 mark

Indian equity benchmarks have recovered half of their previous session’s losses and are trading jubilantly in line with a strong pullback that was witnessed in their global peers overnight. Traders took some support with report that the heightened geopolitical tensions and their possible impact on global growth have led investors to believe that US Federal Reserve will ton down its aggressive interest rate hike pitch going ahead. Sentiments also got support with report that Moody’s Investors Service upgraded its financial year 2022-2023 (FY23) growth forecast for the Indian economy to 8.4 per cent from the earlier estimated 7.9 per cent as the country moves to normalcy, post the removal Covid-19 restrictions. Meanwhile, Fitch Ratings maintained its earlier projection of 10.3 percent growth in FY23 compared to 8.4 percent estimated for FY22.

The BSE Sensex is currently trading at 56140.55, up by 1610.64 points or 2.95% after trading in a range of 55299.28 and 56183.70. All the 30 stocks advancing on the index.

The broader indices were trading in green; the BSE Mid cap index surged 4.20%, while Small cap index was up by 4.33%.

The top gaining sectoral indices on the BSE were Realty up by 5.44%, Metal up by 5.39%, Basic Materials up by 4.42%, Industrials up by 4.31% and Power was up by 4.22%, while there were no losers on the BSE sectoral front.

The top gainers on the Sensex were Tata Steel up by 5.53%, Indusind Bank up by 5.27%, Bajaj Finance up by 4.77%, Tech Mahindra up by 4.68% and Bajaj Finserv was up by 4.63%, while there was no loser on the Sensex.

Meanwhile, Government’s data has showed that India has received total foreign direct investment (FDI) of $60.3 billion during April to December period of 2021-22 which is 10.6 per cent lower compared to the $67.5 billion of FDI received in the same period of 2020-21. It showed that equity inflow through FDI during April to December period of 2021-22 is $43.1 billion which is 16 per cent lesser than the $51.4 billion received in same period of 2020-21, even as the government continued to put in place an enabling and investor-friendly FDI policy and remove policy bottlenecks that have been hindering the investment inflows into the country.

It stated Manufacturing, computer services, communication services, retail and wholesale trade and education, research and development are the sectors that attracted most of the investment with computer software and hardware leading with the highest FDI equity inflows of $10.25 billion. Telecommunications received $0.58 billion, services sector retained the lead in FDI inflows with $5.34 billion, followed by trading with $2.98 billion and automobile industry with $5.96 billion.

Foreign Direct Investment in construction (infrastructure) activities was to the tune of $1.58 billion while in the sector of construction development, townships, housing, built-up infrastructure and construction-development projects, FDI inflows were $0.09 billion. Drugs & pharmaceuticals saw $1.20 billion FDI, chemicals (other than fertilizers), $0.6 billion and hotel and tourism $0.64 billion of FDI.

The CNX Nifty is currently trading at 16725.60, up by 477.65 points or 2.94% after trading in a range of 16478.30 and 16748.80. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 7.77%, Adani Ports up by 6.40%, Tata Steel up by 5.89%, Indusind Bank up by 5.19% and JSW Steel up by 5.16%. On the flip side, Britannia down by 0.71% and Nestle down by 0.07% were the only losers.

Asian markets are trading mostly in green; Nikkei 225 surged 464.06 point or 1.79% to 26,434.88, Straits Times rose 30.50 point or 0.93% to 3,306.56, Taiwan Weighted added 97.44 point or 0.55% to 17,691.99, KOSPI advanced 28.62 point or 1.08% to 2,677.42, Jakarta Composite gained 62.46 point or 0.92% to 6,880.28 and Shanghai Composite was up by 21.02 point or 0.61% to 3,450.98, while Hang Seng was down by 68.95 point or 0.30% to 22,832.61.