Key gauges add gains in morning deals

Indian frontline indices added gains in morning deals, supported by gains across index-heavyweights like Bharti Airtel, Power Grid Corporation and ITC. Sentiments remained positive with Textile Minister Piyush Goyal’s statement that countries across the world are looking at India as a trusted partner and want to sign free trade agreements with it after its emergence as a strong force in the world. Some optimism also came with report that the Department for Promotion of Industry and Internal Trade (DPIIT) is working closely with 24 sectors in order to boost domestic manufacturing, increase exports and cut down imports. It said efforts are on to boost the growth of these sectors in a holistic and coordinated manner. Traders overlooked Icra Ratings' report that with exports continuing to remain under stress for the second consecutive month in November, and imports also falling, the current account deficit is likely to moderate in the second half and close the fiscal with a 3.3 percent of GDP or $108-112 billion, which still be a record high.

On the global front, Asian markets are trading mostly in red following the negative cues from global markets on Friday, as concerns about rising interest rates and fears of a global economic recession continued to weigh on sentiment. Back home, banking stocks remained in watch as latest Reserve Bank of India (RBI) data showed that bank credit grew by 17.5 per cent year-on-year (YoY) to Rs 131.06 trillion in the fortnight ended December 2, reflecting the continuation of firm demand for loans in the economy.

The BSE Sensex is currently trading at 61575.61, up by 237.80 points or 0.39% after trading in a range of 61265.31 and 61629.46. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.18%, while Small cap index was up by 0.12%.

The top gaining sectoral indices on the BSE were FMCG up by 0.95%, Telecom up by 0.56%, Auto up by 0.52%, Metal up by 0.51% and Bankex up by 0.35%, while IT down by 0.65%, Capital Goods down by 0.39%, TECK down by 0.34%, Healthcare down by 0.23% and Industrials down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.11%, Power Grid Corporation up by 1.95%, ITC up by 1.43%, Nestle up by 1.40% and Mahindra & Mahindra up by 1.29%. On the flip side, Infosys down by 1.14%, Sun Pharma down by 0.78%, Tata Motors down by 0.65%, TCS down by 0.50% and Larsen & Toubro down by 0.50% were the top losers.

Meanwhile, Icra Ratings in its latest report has said that with exports continuing to remain under stress for the second consecutive month in November, and imports also falling, the current account deficit is likely to moderate in the second half and close the fiscal with a 3.3 per cent of GDP or USD 108-112 billion, which still be a record high.

It stated falling exports and commodity prices will also help the country print in a moderate CAD at USD 24-26 billion in Q3FY23 from likely high of USD31-34 billion in Q2FY23. Merchandise exports remained flat in November with an on-year growth of 0.6 per cent.  Imports also moderated in November to 5.4 per cent but declined by 1.4 percent month-on-month, aided marginally lower commodity prices.

It mentioned average trade deficit narrowed in October-November from Q2 FY23, auguring well for current account deficit for Q3, but warned merchandise exports are expected to contract in December-March, owing to external slowdown and softer commodity prices.

The CNX Nifty is currently trading at 18345.65, up by 76.65 points or 0.42% after trading in a range of 18244.55 and 18354.10. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 1.99%, Bharti Airtel up by 1.96%, Nestle up by 1.40%, ITC up by 1.37% and Bajaj Auto up by 1.30%. On the flip side, Infosys down by 1.08%, Sun Pharma down by 0.82%, Tata Motors down by 0.79%, BPCL down by 0.73% and ONGC down by 0.54% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 302.47 points or 1.1% to 27,224.65, Hang Seng decreased 88.00 points or 0.45% to 19,362.67, Taiwan Weighted dropped 87.13 points or 0.6% to 14,441.42, Shanghai Composite declined 41.45 points or 1.31% to 3,126.41, Jakarta Composite lost 25.20 points or 0.37% to 6,786.99 and KOSPI fell 12.57 points or 0.53% to 2,347.45.

On the flip side, Straits Times advanced 13.57 points or 0.42% to 3,254.38.