Domestic indices trade near day’s high points

Indian equity markets were trading near day’s high points in late morning deals, with Sensex hitting 62,000 level, on the back of fresh buying by funds and retail investors. Sentiments got boost as Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta said that the direct tax collection in the current fiscal is likely to exceed the budget target of Rs 14.20 lakh crore by about 30 per cent. He also said that the Budget for next fiscal could bring about some tweaks in the TDS provision for online gaming to check tax evasion. On the BSE sectoral front, traders were seen piling up position in IT, Industrials, TECK, Bankex and PSU, while selling was witnessed in Metal, Utilities, Realty, Power and Oil & Gas.

On the global front, Asian markets were trading mostly lower as traders ponder on the impact of the geopolitical situation following reports of Russian missile strikes crossing into Poland and killing two people. Back home, in stock specific development, Balrampur Chini Mills surged on commencement of share buyback today. The stock of sweetener quoted higher for the third straight day.

The BSE Sensex is currently trading at 62000.52, up by 127.53 points or 0.21% after trading in a range of 61708.63 and 62035.56. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in mixed; the BSE Mid cap index was down by 0.11%, while Small cap index up by 0.17%.

The top gaining sectoral indices on the BSE were IT up by 0.60%, Industrials up by 0.47%, TECK up by 0.46%, Bankex up by 0.42% and PSU up by 0.38%, while Metal down by 1.16%, Utilities down by 0.56%, Realty down by 0.54%, Power down by 0.44% and Oil & Gas down by 0.31% were the losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.15%, Dr. Reddy's Lab up by 1.31%, TCS up by 0.93%, Wipro up by 0.91% and HCL Tech. up by 0.64%. On the flip side, Tata Steel down by 1.24%, NTPC down by 1.02%, Bajaj Finance down by 0.90%, Mahindra & Mahindra down by 0.60% and Indusind Bank down by 0.58% were the top losers.

Meanwhile, global ratings agency Moody's Investors Service has given a 'negative outlook' to credit worthiness of countries globally including India, for 2023, saying high prices of food and energy would curb economic growth and raise social tensions. It said tighter financial conditions and economic scarring will push some debt burdens to unsustainable levels, while rising borrowing costs will erode debt affordability.

Ratings agency forecast that as many as 13 nations, including India, would spend over 20 per cent of their government revenue in servicing debt next year. The policy dilemma between servicing creditors and meeting populations' demands for social and economic developments will intensify as governments dedicate a growing share of their revenue to interest payments. It said ‘our outlook for sovereign creditworthiness in 2023 is negative. Although inflation will start declining, prices of food and energy will remain high, curbing economic growth and raising social tensions.’

It further stated that global GDP growth will slow to 1.7 per cent in 2023, from 3 per cent in 2022 as higher prices and tighter monetary policy hurt consumer spending, investment and economic sentiment. Asia would outperform other regions. Large Asian countries like India will grow in excess of 4.5 per cent as domestic consumption, investment and tourism return to normal. India's GDP growth projection for 2022 was cut to 7 per cent from 7.7 per cent, citing global slowdown, high inflation and rising domestic interest rates. For G-20 economies, the growth is projected to decelerate to 1.3 per cent in 2023, significantly lower than its previous estimate of 2.1 per cent.

The CNX Nifty is currently trading at 18430.35, up by 26.95 points or 0.15% after trading in a range of 18354.70 and 18438.70. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.35%, Eicher Motors up by 1.68%, Dr. Reddy's Lab up by 1.43%, TCS up by 0.99% and Wipro up by 0.96%. On the flip side, Hindalco down by 2.04%, JSW Steel down by 1.61%, Divi's Lab down by 1.34%, Tata Steel down by 1.29% and Apollo Hospital down by 1.13% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 208.84 points or 1.14% to 18,134.28, Shanghai Composite declined 13.92 points or 0.44% to 3,120.16, Taiwan Weighted dropped 8.96 points or 0.06% to 14,537.35, Straits Times trembled 1.12 points or 0.03% to 3,274.16, KOSPI fell 5.63 points or 0.23% to 2,474.70 and Jakarta Composite lost 40.70 points or 0.58% to 6,994.80. However, Nikkei 225 surged 54.98 points or 0.2% to 28,045.15.