Domestic indices erase opening losses; trade marginally in green

Indian equity benchmarks made slightly negative start on Monday tracking weakness in Asian peers. But, soon markets gathered momentum and wiped out all losses and entered into green terrain. Domestic indices are trading marginally in green in early deals on the back of buying in Oil & Gas, Energy and Auto stocks. Besides, broader indices -- BSE Mid & Small cap indices – were outperforming larger peers with gains of over half a percent each. Initially, some cautiousness prevailed among market participants as Sanjiv Sanyal, member of the Economic Advisory Council to the Prime Minister said India is capable of generating a 9 per cent growth rate but in view of the geopolitical situation, we should be satisfied with a 6.5-7 per cent economic expansion. Though, some support came in as the RBI said in the second consecutive week of an increase in the kitty, India’s forex reserves have grown by $2.537 billion to $547.252 billion for the week ended November 18. Meanwhile, the Centre has released Rs 17,000 crore to the States and Union Territories as the balance compensation for the goods and services tax (GST) for the period, April-June 2022.

On the global front, all the Asian markets are trading lower, following the mixed cues from Wall Street on Friday, as traders reacted the growing unrest in China amid the zero-COVID policy with record-high domestic daily Covid-19 cases and the unprecedented COVID restrictions in several cities in China. Traders also once again refrained from making significant moves amid a lack of any other major triggers, even as they remain optimistic about slower interest rate hikes. Back home, pharma stocks were buzzing as Udaya Bhaskar, Director General of Pharmaceuticals Export Promotion Council of India (Pharmexcil) said pharmaceutical exports from India registered a growth of 4.22 per cent to reach $14.57 billion during the April-October period despite a negative trend last month. In stock specific developments, Hero MotoCorp rises after company announced increase in prices by up to Rs 1,500. Indian Oil gained as it raised Rs 2,500 crore by issuance of unsecured, listed, rated, taxable, redeemable, non-convertible debentures.

The BSE Sensex is currently trading at 62367.73, up by 74.09 points or 0.12% after trading in a range of 61959.74 and 62394.87. 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 0.64%, while Small cap index was up by 0.59%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.41%, Energy up by 1.26%, Auto up by 0.97%, PSU up by 0.52%, Realty up by 0.52%, while Metal down by 1.12%, Bankex down by 0.11% were the only losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 1.37%, Asian Paints up by 0.90%, Tech Mahindra up by 0.75%, Maruti Suzuki up by 0.73% and Bajaj Finserv up by 0.66%. On the flip side, HDFC down by 1.48%, HDFC Bank down by 1.11%, Tata Steel down by 0.89%, Indusind Bank down by 0.38% and Larsen & Toubro down by 0.27% were the top losers.

Meanwhile, Member of the Economic Advisory Council to the Prime Minister, Sanjiv Sanyal has said ‘India is capable of generating a 9 per cent growth rate but in view of the geopolitical situation, we should be satisfied with a 6.5-7 per cent economic expansion’. He added that India is following an ‘investment and export-driven growth model’ and against the backdrop of ‘turbulent’ global times, the RBI and the government have followed a restrained macro-economic approach, which is a correct step.

He noted that ‘It is a very turbulent time and we are generating a 7 per cent growth rate already. Nothing to sniff at. But if we get an open road, this economic machinery that we have built is capable of generating a 9 per cent growth rate’. The global economy is facing supply chain disruptions following the outbreak of the Russia-Ukraine war in February.

He further said ‘this is not the time to try and overextend ourselves. Any growth rate between 6.5-7 per cent growth rate is not to be sniffed at. Even in the best of times. So let us be satisfied for now. But the time has come when we will be able to press the accelerator and I'm assuring you that the Indian supply side is ready for the big time’. He said India is getting inserted into the global supply chain.

The CNX Nifty is currently trading at 18538.30, up by 25.55 points or 0.14% after trading in a range of 18365.60 and 18541.55. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.96%, SBI Life Insurance up by 2.50%, Hero MotoCorp up by 2.20%, Reliance Industries up by 1.55% and Tata Motors up by 1.19%. On the flip side, Hindalco down by 2.13%, Apollo Hospital down by 1.79%, HDFC down by 1.45%, JSW Steel down by 1.22% and HDFC Bank down by 1.15% were the top losers.

All the Asian markets are trading in red; Nikkei 225 slipped 139.06 points or 0.49% to 28,143.97, Straits Times fell 12.44 points or 0.38% to 3,232.11, Hang Seng plunged 342.50 points or 1.95% to 17,231.08, Taiwan Weighted lost 174.44 points or 1.18% to 14,604.07, KOSPI declined 22.01 points or 0.90% to 2,415.85, Jakarta Composite weakened 12.41 points or 0.18% to 7,040.74 and Shanghai Composite was down by 32.03 points or 1.03% to 3,069.66.