Post Session: Quick Review

Indian markets exhibited a smart pull back in Monday’s trade but some profit booking was also seen in the last leg of session. After making slightly negative start, soon markets turned positive on huge buying in Utilities, Power and PSU sectors’ stocks. Traders got support with report stating that foreign investors have infused a net Rs 11,557 crore in Indian equities in December so far despite a market correction and increasing concerns over re-emergence of COVID in China and some other parts of the world. Indices continued their gaining momentum with Union Minister of State in the Ministry of Commerce and Industry Anupriya Patel’s statement that bilateral trade between India and the Gulf Cooperation Council (GCC) grew from $87.35 billion in fiscal year 2020-21 to $154.66 billion in 2021-22, registering an increase of 77.06 per cent on a year-on-year basis.

Markets continued to trade with healthy gains in afternoon session, as 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. After trading strength to strength since morning, markets touched their day’s high points in late afternoon session amid positive cues from other Asian markets cues. Some comfort also came as the Centre for Economics and Business Research (Cebr) said that India's growth trajectory will see the country rise from fifth place on the World Economic League Table in 2022 to third in the global rankings by 2037. However, in last leg of trade, markets off from day’s highs, as traders opted to book profit.

On the global front, European markets were closed amid Christmas holiday. Asian markets ended in green amid signs that U.S. inflation may be receding. Several markets including Hong Kong, Australia, New Zealand and Singapore were closed for holidays. Back home, sector wise, retail industry remained in focused, as Retailers Association of India (RAI) has said India's retail industry saw a 19 per cent rise in sales over pre-pandemic levels during the April-November 2022 period riding on the back of strong performance of segments such as quick service restaurant and footwear.

The BSE Sensex ended at 60,566.42, up by 721.13 points or 1.20% after trading in a range of 59,754.10 and 60,833.78. There were 24 stocks advancing against 6 stocks declining on the index. (Provisional)

The broader indices ended in green; the BSE Mid cap index gained 2.31%, while Small cap index was up by 3.13%. (Provisional)

The top gaining sectoral indices on the BSE were Utilities up by 3.40%, PSU up by 3.25%, Power up by 3.18%, Industrials up by 2.53% and Realty was up by 2.41%, while Healthcare down by 0.45% was the only losing indice on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 4.02%, Indusind Bank up by 3.99%, Bajaj Finserv up by 2.87%, Tata Steel up by 2.64% and ITC up by 2.59%. On the flip side, Nestle down by 1.17%, Kotak Mahindra Bank down by 0.43%, Bharti Airtel down by 0.15%, HCL Tech down by 0.14% and Hindustan Unilever down by 0.13% were the top losers. (Provisional)

Meanwhile, former RBI Governor C Rangarajan has noted that the India achieving $5 trillion economy is a short term aspirational goal, and said even after that India will still be known as middle income country with per capita income $3472. He further said in order to reach the level of an upper middle-income country, it will take another two years and to be classified as a developed country, the per capita income will have to be at a minimum of $13,205 and that will take more than two decades of strong growth of between 8 to 9 per cent to achieve it.

He said at aggregate output level, India is the fifth largest economy in the world now. That by itself is an impressive achievement. But in terms of per capita income, India's rank according to IMF is 142 out of 197 countries. The immediate focus of policymakers must be to raise the growth rate of the economy. Achievement of a $5 trillion economy is a good short term aspirational goal.

He also noted that this will take a minimum five years of sustained growth of 9 per cent. Even then, at the end of it, India's per capita income will be only $3472 and we will still be classified as a lower middle income country.

The CNX Nifty ended at 18,014.60, up by 207.80 points or 1.17% after trading in a range of 17,774.25 and 18,084.10. There were 38 stocks advancing against 11 stocks declining on the index. (Provisional)

The top gainers on Nifty were Indusind Bank up by 4.17%, SBI up by 4.02%, Hindalco up by 3.12%, Tata Steel up by 2.69% and Coal India up by 2.65%. On the flip side, Cipla down by 2.02%, Divi's Lab down by 1.99%, Dr. Reddy's Lab down by 1.43%, Nestle down by 1.17% and Tata Consumer down by 0.47% were the top losers. (Provisional)

European markets were closed on the accounts of Christmas holiday.

Asian markets settled higher on Monday, even as several markets in the region, such as Hong Kong, Malaysia and Singapore were closed for holidays. Japanese shares rose tracking Wall Street's strength in the previous session and signs that US inflation may be receding. Seoul shares gained marginally on institutional buying. Moreover, Chinese shares climbed despite concerns over surging Covid-19 cases in the country. Chinese defence-related shares jumped amid heightened tensions around the Taiwan Strait. Taiwan's defence ministry has said 43 Chinese air force planes crossed the Taiwan Strait's median line in the past 24 hours as Beijing continues its military activities close to the island, which China considers part of its territory.