Markets trade higher in early deals on Monday

Indian equity benchmarks have extended their previous session’s gains with a positive opening and are now trading higher by around quarter a percent on Monday, tracking positive cues from global markets.  Meanwhile, the broader indices on the BSE were trading with gains of over half a percent each. Sentiments got boost as the former Vice-Chairman of NITI Aayog Arvind Panagariya has said India may log a growth rate of eight per cent of real Gross Domestic Product (GDP) in FY23. Traders took note of report that US Secretary of the Treasury Janet Yellen will visit India to participate in the US-India Economic and Financial Partnership on November 11 and discuss how the two countries can work together to deepen their economic ties. However, gains remained capped as Union Finance Minister Nirmala Sitharaman has said indiscriminate borrowing and spending by certain States on non-merit goods and expenditure is a matter of concern, and fiscal strength is a critical component for Atma Nirbhar Bharat.

On the global front, most of the Asian markets were trading in green following the broadly positive cues from US markets on Friday, with strength in resources and energy stocks boosting the markets amid the spike in commodity prices.  Asian markets ended higher on Friday, reclaiming positive territory in a volatile trading session.

Back home, there were some buzz in sugar related stocks as the government, which has allowed export of six million tonnes of sugar till May 31 of the ongoing 2022-23 season, said that it might allow more export after periodic assessment of domestic production. In stock specific development, State Bank of India (SBI) hit a all-time high on the BSE after the bank’s net profit soared 73.93 per cent year-on-year (YoY) to Rs 13,265 crore in the July-September quarter (Q2FY23), backed by improvement in interest margins and decline in provisions for bad loans.

The BSE Sensex is currently trading at 61085.19, up by 134.83 points or 0.22% after trading in a range of 61070.98 and 61401.54. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.63%, while Small cap index up by 0.65%.

The top gaining sectoral indices on the BSE were PSU up by 2.04%, Bankex up by 1.02%, Auto up by 0.87%, FMCG up by 0.83% and Realty up by 0.73%, while Consumer Durables down by 0.41% and Healthcare down by 0.35% were the only losing indices on BSE.

The top gainers on the Sensex were SBI up by 3.73%, Power Grid Corp up by 1.50%, Nestle up by 1.06%, Tata Steel up by 1.05% and Maruti Suzuki up by 0.96%. On the flip side, Titan Co down by 1.56%, Sun Pharma down by 1.23%, Dr. Reddy's Lab down by 1.14%, Asian Paints down by 0.78% and Bajaj Finserv down by 0.35% were the top losers.

Meanwhile, Union Finance Minister Nirmala Sitharaman has said indiscriminate borrowing and spending by certain States on non-merit goods and expenditure is a matter of concern, and fiscal strength is a critical component for 'Atma Nirbhar Bharat'. Sitharaman stated that the temptation to borrow beyond capacity would create an inter-generational burden and affect the fiscal soundness of the country.

She stated that the tendency to get into such not-so-viable, non-merit expenditure is very high in some States.  Moreover she mentioned, as per the Constitution, the Centre can discuss with and raise questions to the States on borrowing but many of them see it as an interference in their space of authority.

Further, she said the economy in the globalised world must address the vulnerabilities it faces and the Centre and the States would have to work together in that regard. Besides, she added that despite hurdles and challenges, the country surged ahead in areas of development and even reached the fifth position in the global economy index overtaking the United Kingdom.

The CNX Nifty is currently trading at 18170.95, up by 53.80 points or 0.30% after trading in a range of 18165.35 and 18255.50. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Britannia up by 9.15%, SBI up by 3.75%, Power Grid Corp up by 2.01%, Tata Motors up by 1.62% and BPCL up by 1.48%. On the flip side, Titan Co down by 1.90%, Cipla down by 1.55%, Dr. Reddy's Lab down by 1.14%, Sun Pharma down by 1.05% and Asian Paints down by 0.99% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 592.00 points or 3.66% to 16,753.14, Shanghai Composite gained 14.07 points or 0.46% to 3,084.87, Taiwan Weighted strengthened 200.33 points or 1.54% to 13,227.04, Straits Times advanced 8.23 points or 0.26% to 3,138.34, KOSPI rose 20.51 points or 0.87% to 2,368.94 and Nikkei 225 surged 349.02 points or 1.28% to 27,548.76. However, Jakarta Composite lost 8.23 points or 0.12% to 7,037.30.