Benchmarks add some gains in morning deals

Indian equity benchmarks added some gains in morning deals, led by gains in Metal, FMCG and Consumer Durables stocks. Traders took a note of report that DEA Secretary Ajay Seth has exhorted multilateral development banks (MDBs) to explore more private sector investment opportunities to facilitate further crowding-in of private financial resources. He highlighted huge opportunities to scale-up investments in India's key priority areas, including green energy and urban infrastructure. However, gains remain capped as private report lowered its forecast for India’s economic growth next year, citing a hit to consumer demand from higher borrowing costs and fading benefits from pandemic reopening. Gross domestic product may expand by 5.9% in calendar year 2023 from an estimated 6.9% this year. Meanwhile, Finance Minister Nirmala Sitharaman will hold pre-budget consultations with her state counterparts on Friday.

On the global front, Asian markets are trading mixed amid fragile sentiment as investors weighed the impact of Covid infections in China and parsed comments from Federal Reserve officials on interest rate hikes. Back home, stocks related to tyre industry remained in watch as rating agency ICRA maintained its domestic tyre demand’s growth estimate at 6-8% for FY2023, driven primarily by strong growth in the original equipment manufacturers (OEM) segment and muted growth in replacement volumes.

The BSE Sensex is currently trading at 61305.23, up by 160.39 points or 0.26% after trading in a range of 61073.68 and 61319.98. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.25%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Metal up by 0.56%, FMCG up by 0.49%, Consumer Durables up by 0.43%, Capital Goods up by 0.35% and Industrials up by 0.34% while, Realty down by 0.81%, Oil & Gas down by 0.45%, Healthcare down by 0.20%, Energy down by 0.16% and Utilities down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.06%, Indusind Bank up by 1.10%, Bajaj Finserv up by 0.96%, NTPC up by 0.91% and Axis Bank up by 0.78%. On the flip side, Nestle down by 0.73%, Power Grid Corporation down by 0.64%, Kotak Mahindra Bank down by 0.53%, HDFC Bank down by 0.31% and Wipro down by 0.18% were the top losers.

Meanwhile, Union minister Jyotiraditya Scindia has said removal of export duty on steel products will lead to a new era of growth for the domestic steel industry which has gained footprint internationally. He added after so many years, Indian steel industry has been able to enlarge its footprint globally and therefore it was 'our (government) job to provide a fillip' to the industry.

The government had cut the export duty on steel products and iron ore to nil with effect from November 19, 2022 -- six months after imposition of the levy on May 21.  
Exports of specified pig iron and steel products as well as iron ore pellets will attract 'nil' export duty. Also, export duty on outward shipment of iron ore lumps and fines with less than 58% iron content will be 'nil'. In the case of iron ore lumps and fines with more than 58% iron content, the rate of duty will be 30%. 

The CNX Nifty is currently trading at 18209.90, up by 49.95 points or 0.28% after trading in a range of 18137.70 and 18212.60. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.04%, Grasim Industries up by 1.94%, Indusind Bank up by 1.22%, Adani Ports &SEZ up by 1.16% and Hindalco up by 1.05%. On the flip side, Nestle down by 0.82%, ONGC down by 0.70%, Power Grid Corporation down by 0.66%, Kotak Mahindra Bank down by 0.65% and BPCL down by 0.50% were the top losers.

Asian markets are trading mixed; Straits Times advanced 16.46 points or 0.51% to 3,267.08, Taiwan Weighted strengthened 0.36 points or 51.93% to 14395.53, Nikkei 225 surged 188.86 points or 0.68% to 28,133.65 and Shanghai Composite gained 27.59 points or 0.89% to 3112.63.

On the other hand, Hang Seng fell 68.04 points or 0.39% to 17,587.87, Jakarta Composite lost 0.06 points or 0.01% to 7062.65 and KOSPI fell 9.46 points or 0.39% to 2,410.04.