Benchmarks log gains for third day; Nifty just shy of 17,500 mark

Indian equity benchmarks logged gains for the third day on Wednesday, aided by Finance, Realty and Banking stocks, amid a moderation in crudes prices after Russia hinted at de-escalation of the conflict with Ukraine. Markets made a gap-up opening and traded on a firm note throughout the day, as investors’ morale remained upbeat with Finance Minister Nirmala Sitharaman’s statement that India’s sharp economic recovery post COVID-19 and Budget initiatives will help in sustaining growth momentum in the years to come. Meanwhile, she said FDI into the country during the Modi government was $500.5 billion, which is 65 per cent more than the amount received in the 10 years of the UPA government, as investors have trusted the economic management of the current regime. Some optimism also came as Sanjiv Mehta, President of the Federation of Indian Chambers of Commerce and Industry (FICCI) said that the Comprehensive Economic Partnership Agreement (CEPA), India's Free Trade Agreement with UAE, is good for all types of businesses and industries be it small scale or large scale and holds benefit for both goods and services sector.

Benchmarks continued to move higher in late afternoon deals, as traders took some encouragement with Union minister Narayan Rane’s statement that the government is setting up a global market intelligence network to boost India's exports from the micro, small and medium enterprises sector. He said the Global Market Intelligence Network will act as a knowledge repository of export-related data on foreign markets and facilitate easier market access for MSME exporters. Some support also came as Finance Minister Nirmala Sitharaman stated that gross NPAs have reduced to Rs 7.73 lakh crore as of December 31, 2021, against Rs 10.36 lakh crore as of March 31, 2018, due to transparent recognition of stressed assets. Traders overlooked report by domestic ratings agency ICRA in which it has cut its FY23 real Gross domestic product (GDP) growth estimate by a sharp 0.8 per cent to 7.2 per cent. It attributed the downward revision to elevated commodity prices and also fresh supply chain issues arising from the conflict in Ukraine.

On the global front, European markets were trading lower as investors paused to take stock of the outcome of Russia-Ukraine peace talks. Asian markets settled mostly higher on Wednesday amid optimism around a peaceful resolution of the Ukraine war. Russia on Tuesday promised to scale down military operations around Ukraine's capital Kyiv, while Ukraine proposed adopting a neutral status in face-to-face negotiations. Back home, pharmaceutical sector stocks remained in watch as Union minister Mansukh Mandaviya said manufacturing of 35 active pharmaceutical ingredients, which have been imported earlier, has started in India under the production linked scheme for the pharmaceuticals sector. These 35 active pharmaceutical ingredients (APIs) are among the 53 APIs, for which India has 90 per cent import dependence. There were some buzz in gem and jewellery stocks as Commerce and Industry Minister Piyush Goyal called upon gem and jewellery exporters to target $100 billion of exports annually in the coming years as the sector holds huge potential to boost outbound shipments.

Finally, the BSE Sensex rose 740.34 points or 1.28% to 58,683.99 and the CNX Nifty was up by 172.95 points or 1.00% to 17,498.25.      

The BSE Sensex touched high and low of 58,727.78 and 58,176.00, respectively. There were 21 stocks advancing against 9 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index rose 0.78%, while Small cap index was up by 1.09%.

The top gaining sectoral indices on the BSE were Finance up by 1.71%, Realty up by 1.49%, Bankex up by 1.36%, Industrials up by 1.25% and Auto up by 1.20%, while Metal down by 2.89%, Oil & Gas down by 0.86%, Basic Materials down by 0.59%, Power down by 0.40% and Utilities down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.82%, Bajaj Finance up by 3.09%, Mahindra & Mahindra up by 2.81%, Power Grid Corporation up by 2.60% and Nestle up by 2.20%. On the flip side, ITC down by 2.16%, Tata Steel down by 1.98%, Tech Mahindra down by 1.69%, Bharti Airtel down by 0.68% and Titan Company down by 0.60% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has said India's sharp economic recovery post COVID-19 and Budget initiatives will help in sustaining growth momentum in the years to come. Sitharaman stated the government's road map for imparting momentum to the economy focusses on growth at the macro level and complementing it with all-inclusive welfare at the micro level, promoting digital economy and fintech, technology-enabled development, energy transition and climate action and relying on a virtuous cycle of investment and growth.

The government's road map was put into effect in 2014, she said, adding that major reforms, including Goods and Services Tax (GST), Insolvency and Bankruptcy Code (IBC) and significant reduction in corporate tax rate, were implemented. She mentioned the reforms contributed to the real GDP growing at an annual average rate of 6.8 per cent during 2014-20.

She said India's sharp economic recovery in 2021-22 and Budget measures have prompted international rating agencies to forecast a real GDP growth above 8 per cent in 2022-23. This will sustain the growth momentum in the economy. Besides, she said the Union Budget 2022-23 is the latest road map of the government for taking India's economy to a higher growth trajectory. She stated the PM Gatishakti Scheme in the Budget is a huge investment in physical infrastructure drawing from the National Infrastructure Pipeline.

The CNX Nifty traded in a range of 17,522.50 and 17,387.20. There were 32 stocks advancing against 18 stocks declining on the index.  

The top gainers on Nifty were HDFC Life Insurance up by 3.50%, Bajaj Finserv up by 3.29%, Tata Consumer Product up by 3.00%, Bajaj Finance up by 2.78% and Power Grid Corporation up by 2.70%. On the flip side, ONGC down by 5.38%, Hindalco down by 4.89%, JSW Steel down by 4.62%, ITC down by 2.18% and Tata Steel down by 2.13% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 3.15 points or 0.04% to 7,534.10, France’s CAC decreased 63.79 points or 0.94% to 6,728.37 and Germany’s DAX decreased 214.36 points or 1.45% to 14,605.97.

Asian markets settled mostly higher on Wednesday on expectations of a possible end to the Russia-Ukraine conflict after Russia promised to scale down military operations around Ukraine's capital Kyiv. Chinese shares gained with hopes for additional policy support to shore up the world’s second largest economy. Although, the eastern part of China’s financial hub of Shanghai city is in its third day of a lockdown. Japanese shares ended lower as investors booked profits heading into the end of the fiscal year.