Markets remain firm on sustained buying support

Mirroring their Asian peers, Indian equity markets were trading in fine fettle on continued buying by funds and retail investors in the noon session as falling crude prices eased inflation concerns. In a continued counter-rally oil prices finally plunged below $100 per barrel for the first time in about three months now. Sentiments were also upbeat as Reserve Bank of India (RBI) announced a series of measures to attract foreign flows in a bid to protect the local currency amid depleting foreign exchange reserves. India’s foreign exchange reserves have depleted by $38 billion to below $600 billion since the Russian invasion of Ukraine late February. Heavy buying was witnessed in Consumer Durables, Realty and PSU stocks. Gains in frontline blue chip stocks such as Titan, Mahindra & Mahindra and Indusind Bank also helped to lift the markets. On the global front, Asian markets were trading mostly higher after the US Federal Reserve said higher interest rates might be needed to cool inflation.

The BSE Sensex is currently trading at 54121.28, up by 370.31 points or 0.69% after trading in a range of 53980.74 and 54249.74. 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 0.96%, while Small cap index was up by 1.20%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.77%, Realty up by 1.71%, PSU up by 1.60%, Capital Goods up by 1.46% and Consumer Discretionary was up by 1.35%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Titan Co up by 5.39%, Mahindra & Mahindra up by 2.61%, Indusind Bank up by 2.03%, Larsen & Toubro up by 1.92% and TCS was up by 1.73%. On the flip side, Bajaj Finserv down by 1.57%, Bajaj Finance down by 0.94%, Reliance Industries down by 0.93%, Ultratech Cement down by 0.53% and Dr. Reddy's Lab was down by 0.50% were the top losers.

Meanwhile, principal economic advisor with the Department for Promotion of Industry and Internal Trade (DPIIT) Rupa Dutta has said that the government is working on to reduce compliance issues with a focus on ease of doing business and has introduced the Insolvency and Bankruptcy Code (IBC) keeping that in mind. She said the government is taking steps for a prospective future and measures are needed to sustain the growth momentum as India is now the fastest growing economy in the world.

Dutta said India's rank in ease of doing business according to World Bank report has improved from 142 in 2014 to 63 in 2022 and reduction in compliances is now a major focus. The IBC introduced by the government is comparable to OECD countries. The Organisation for Economic Co-operation and Development (OECD) has 38 countries across the globe as members. She also said that the national logistics policy is a key priority area for the government as it will bring down logistics costs and the Prime Minister Gatishakti programme will help in holistic planning for infrastructure projects.

She also noted that the country's exports, now at around $400 billion, are expected to touch $1 trillion hopefully next year, and the government is negotiating with FTAs with a number of countries like the EU members and Canada. She noted that the FTAs will open up the market for Indian goods and services abroad, and added that one thing Indian producers need to ensure is maintaining good quality and standards. She added that another priority area for the government is wealth creation by improving production levels.

The CNX Nifty is currently trading at 16108.70, up by 118.90 points or 0.74% after trading in a range of 16063.75 and 16139.50. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Titan Co up by 5.39%, UPL up by 2.74%, Mahindra & Mahindra up by 2.58%, BPCL up by 2.33% and Indusind Bank was up by 2.15%. On the flip side, Bajaj Finserv down by 1.30%, Reliance Industries down by 0.91%, Bajaj Finance down by 0.79%, Cipla down by 0.66% and Dr. Reddy's Lab was down by 0.46% were the top losers.

Asian markets were trading mostly higher; KOSPI rose 42.26 points or 1.84% to 2,334.27, Jakarta Composite soared 7.99 points or 0.12% to 6,654.40, Taiwan Weighted strengthened 350.76 points or 2.51% to 14,336.27, Nikkei 225 surged 382.88 points or 1.47% to 26,490.53, Straits Times advanced 2.07 points or 0.07% to 3,105.73 and Shanghai Composite was up by 3.29 points or 0.1% to 3,358.64. On the flip side; Hang Seng was down by 37.96 points or 0.18% to 21,548.70.