Markets magnify gains on positive global cues

Indian equity markets magnified their gains and were trading higher by over half percent in late morning deals as market participants indulged in enlarging positions. Weak crude oil prices and positives cues from global markets supported sentiments. Fed minutes hinted at less aggressive hikes in interest rates soon. Sentiments remained positive as Revenue Secretary Tarun Bajaj said India's tax collection will exceed the budget estimate by nearly Rs 4 lakh crore in the current fiscal on the back of buoyant income tax, customs duty and GST mop-up. Oil marketing related companies stocks were in action on falling crude oil prices.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from US markets overnight, as traders reacted positively to the minutes of the US Federal Reserve's latest monetary policy meeting, which provided further evidence the central bank is considering slowing the pace of its interest rate hikes. Back home,  on the BSE sectoral front, traders were seen pilling up position in IT, TECK, PSU, Oil & Gas and Capital Goods, while selling was witnessed in Telecom, Realty, Metal and Consumer Durables. In stock specific development, Bikaji Foods International rallied, hitting a new high at Rs 379.20 on the National Stock Exchange (NSE) amid heavy volumes. Bikaji Foods now traded at its highest level since its debut on November 16.

The BSE Sensex is currently trading at 61830.02, up by 319.44 points or 0.52% after trading in a range of 61600.42 and 61867.41. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index up by 0.39%.

The top gaining sectoral indices on the BSE were IT up by 0.86%, TECK up by 0.77%, PSU up by 0.75%, Oil & Gas up by 0.62% and Capital Goods up by 0.59%, while Telecom down by 0.24%, Realty down by 0.23%, Metal down by 0.18% and Consumer Durables down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech. up by 1.60%, Power Grid Corp up by 1.49%, HDFC Bank up by 1.25%, Infosys up by 1.16% and Mahindra & Mahindra up by 1.16%. On the flip side, Kotak Mahindra Bank down by 0.48%, Tata Steel down by 0.43%, Bajaj Finserv down by 0.34%, Bharti Airtel down by 0.22% and NTPC down by 0.12% were the top losers.

Meanwhile, Apparel Export Promotion Council (AEPC) Chairman Naren Goenka has said that implementation of the free trade agreement (FTA) between India and Australia will help boost garment exports. He said the duty-free access for the sector to Australia under the trade pact will bring domestic exporters at par with global competitors and make local products competitive. He noted that this will also provide a good opportunity for the Australian companies to embrace China plus one policy.

Recently, an AEPC delegation participated in the International Sourcing Expo in Australia. Goenka said that the Australian companies are eagerly waiting to forge stronger ties and source garment and textiles products from India and this deal will be a shot in the arm for them. He also said AEPC will be facilitating the Indian companies to connect with the right partners through its export promotion initiatives.

He further said Australia has traditionally been a major trading partner for the Indian garment industry with exports occupying a share of about 4 per cent of total Australian garment imports. He noted that the zero-duty deal with Australia in the southern hemisphere will keep Indian factories fully utilised during its lean period with orders for spring and summer products that Indian players are best in.

The CNX Nifty is currently trading at 18363.45, up by 96.20 points or 0.53% after trading in a range of 18294.25 and 18375.95. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 3.84%, HDFC Life Insurance up by 3.35%, BPCL up by 2.29%, Tata Consumer Products up by 2.01% and Power Grid Corp up by 1.56%. On the flip side, Coal India down by 0.54%, Kotak Mahindra Bank down by 0.49%, Tata Steel down by 0.33%, Bharti Airtel down by 0.33% and Bajaj Finserv down by 0.28% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 290.83 points or 1.03% to 28,406.57, Taiwan Weighted strengthened 175.46 points or 1.2% to 14,784.00, KOSPI rose 22.39 points or 0.93% to 2,440.40, Jakarta Composite soared 39.76 points or 0.56% to 7,093.88 and Hang Seng increased 114.50 points or 0.65% to 17,638.31. However, Straits Times fell 3.96 points or 0.12% to 3,252.03 and Shanghai Composite declined 4.64 points or 0.15% to 3,092.27.