Bourses continue to trade in green territory in late afternoon session

 Indian equity markets continued to trade in green territory in late afternoon session on sustained buying activities in index heavyweights, viz Tata Steel, Ultratech Cement, Tech Mahindra among others. The broader indices, the BSE Mid cap index and Small cap index were trading higher with over half a percent. Traders ignored private report that India's unemployment rate rose to 8.0% in November, highest in three months, from 7.77% in the previous month. The urban unemployment rate rose to 8.96% in November from 7.21% in the previous month, while the rural unemployment rate slipped to 7.55% from 8.04%. Sector wise, power sector remained in focused, as India's power consumption logged a double-digit growth of 13.6 per cent to 112.81 billion units in November 2022 compared to the year-ago period. On the global front, Asian markets were trading mostly in green and European markets were trading higher after Federal Reserve Chair Jerome Powell hinted at slowing the pace of rate hikes and the giant Chinese cities of Guangzhou and Chongqing announced an easing of COVID curbs in the wake of nationwide rallies calling for an end to lockdowns.

The BSE Sensex is currently trading at 63355.50, up by 255.85 points or 0.41% after trading in a range of 63183.77 and 63583.07. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.58%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were IT up by 2.15%, Metal up by 1.86%, TECK up by 1.68%, Capital Goods up by 0.84% and Industrials was up by 0.72%, while Utilities down by 0.54%, Power down by 0.50%, FMCG down by 0.35%, Oil & Gas down by 0.11% and Auto was down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.97%, Ultratech Cement up by 2.79%, Tech Mahindra up by 2.45%, TCS up by 2.43% and HCL Tech up by 2.26%. On the flip side, ICICI Bank down by 1.48%, Power Grid Corp down by 1.34%, Mahindra & Mahindra down by 0.78%, Hindustan Unilever down by 0.75% and Nestle down by 0.51% were the top losers.

Meanwhile, Indian manufacturing activity expanded further in the month of November, on the back of quickest increases in new orders and production. Buying levels expanded at a marked and accelerated rate as firms also sought to benefit from relatively mild price pressures. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) increased to 55.7 in November from 55.3 in October.

The report further noted that a stronger upturn in factory orders helped drive the headline PMI higher in November. Demand strength and successful marketing efforts boosted overall sales. Companies also reported a notable improvement in international demand for their goods, with new export orders expanding at the second-fastest pace since May.

On the price front, despite robust demand for inputs, the rate of cost inflation softened considerably in November. The latest rise was moderate, the joint-weakest in 28 months and well below its long-run average. In the last month, there were higher prices for metals, paper and transportation but lower fees for other items.

As per the report, there remained signs of capacity pressures among manufacturers, as seen by a further increase in outstanding business levels. Firms were confident that demand would remain strong in the coming 12 months. As a result, they foresee growth of production volumes. Sentiment improved to its highest level in close to eight years.

The CNX Nifty is currently trading at 18824.45, up by 66.10 points or 0.35% after trading in a range of 18778.20 and 18887.60. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 3.02%, Hindalco up by 2.95%, Ultratech Cement up by 2.80%, Tech Mahindra up by 2.42% and TCS up by 2.38%. On the flip side, Cipla down by 1.64%, ICICI Bank down by 1.43%, UPL down by 1.37%, Bajaj Auto down by 1.27% and Power Grid down by 1.25% were the top losers.

Asian markets were trading mostly in green, Nikkei 225 surged 257.09 points or 0.92% to 28,226.08, Hang Seng increased 139.21 points or 0.75% to 18,736.44, Taiwan Weighted strengthened 133.25 points or 0.9% to 15,012.80, Shanghai Composite gained 14.13 points or 0.45% to 3,165.47, KOSPI rose 7.31 points or 0.3% to 2,479.84 and Straits Times was up by 1.16 points or 0.04% to 3,291.65. On the flip side, Jakarta Composite was down by 60.51 points or 0.85% to 7,020.80.

European markets were trading higher, UK’s FTSE 100 increased 5.83 points or 0.08% to 7,578.88, France’s CAC increased 14.33 points or 0.21% to 6,752.88 and Germany’s DAX was up by 86.08 points or 0.6% to 14,483.12.