Markets magnify gains in late morning deals

Domestic equity indices magnified their gains and traded higher by around one percent in late morning deals as market participants indulged in enlarging positions. Frontline gauges recaptured their crucial 60400 (Sensex) and 17950 (Nifty) levels.  Meanwhile, the broader indices on the BSE were trading higher in the range of 1.95-2.90%. Sentiments were supported by Indian rupee appreciating 11 paise to 82.71 against the dollar at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Traders ignored report that the Reserve Bank of India’s (RBI’s) foreign exchange reserves declined for the first time in five weeks to $563.50 billion in the week ended December 16. On the BSE sectoral front, barring Healthcare, all the major sectoral indices advanced, with metal rising over 2.50%.

On the global front, Asian markets were trading in green as China reported no COVID deaths on the mainland for the five days through Saturday despite a record surge of cases nationwide. Back home, in the stock specific development, NDTV jumped after founders Prannoy Roy and his wife Radhika Roy agreed to sell 27.26 percent out of their remaining 32.26 percent shareholding in the news broadcaster to Adani Group.

The BSE Sensex is currently trading at 60418.00, up by 572.71 points or 0.96% after trading in a range of 59754.10 and 60427.50. There were 25 stocks advancing against 5 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.99%, while Small cap index up by 2.86%.

The top gaining sectoral indices on the BSE were Metal up by 2.57%, Industrials up by 2.57%, Utilities up by 2.49%, PSU up by 2.44% and Power up by 2.36%, while Healthcare down by 0.37% was the only losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 3.28%, Indusind Bank up by 3.17%, Tata Motors up by 2.66%, Ultratech Cement up by 2.59% and ITC up by 2.34%. On the flip side, Sun Pharma down by 0.70%, Kotak Mahindra Bank down by 0.54%, Nestle down by 0.23%, Asian Paints down by 0.17% and Bharti Airtel down by 0.12% were the top losers.

Meanwhile, Union Minister of State for Commerce and Industry Som Parkash has said that India received foreign direct investment (FDI) worth $3.21 million in defence industries during April-September period of FY23.

The minister stated that the sector had attracted $2.36 million foreign investment in 2021-22, $0.63 million in 2020-21, $2.20 million in 2019-20, $2.18 million in 2018-19 and $0.01 million in 2017-18. He said to promote FDI, the government has put in place an investor-friendly policy, wherein most sectors, except certain strategically important ones, are open for 100 per cent FDI under the automatic route.

Further, Parkash said the policy on FDI is reviewed on an ongoing basis, to ensure that India remains an attractive and investor-friendly destination and this has resulted in the increasing trend of FDI inflows into the country since the last eight years. He also said total FDI inflow of $62.38 billion has been reported in the country during 2022 (up to September).

The CNX Nifty is currently trading at 17966.95, up by 160.15 points or 0.90% after trading in a range of 17774.25 and 17976.95. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 3.24%, Tata Steel up by 2.98%, Ultratech Cement up by 2.70%, Tata Motors up by 2.68% and Hindalco up by 2.63%. On the flip side, Dr. Reddy's Lab down by 1.60%, Divi's Lab down by 1.43%, Cipla down by 1.31%, Kotak Mahindra Bank down by 0.72% and Sun Pharma down by 0.65% were the top losers.

Asian markets were trading in green; Nikkei 225 surged 155.46 points or 0.59% to 26,390.71, Taiwan Weighted strengthened 13.50 points or 0.09% to 14,285.13, Shanghai Composite gained 19.36 points or 0.64% to 3,065.23, KOSPI rose 5.49 points or 0.24% to 2,319.18 and Jakarta Composite soared 1.31 points or 0.02% to 6,801.98.