Bourses continue to trade in fine fettle in late afternoon session

Following positive global cues, Indian equity benchmarks continued their fine fettle trade in late afternoon session. Huge buying in metal counter mainly helped markets to trade higher. Globally, traders remained optimistic after China further relaxed its COVID-19 curbs, raising hopes of a recovery in the world's second-largest economy. Sector wise, sugar stocks remained in limelight after Ministry of Consumer Affairs, Food and Public Distribution announced 100 percent incentive on sugar sacrificed for producing ethanol from B-heavy molasses, sugarcane juice and syrup. On the global front, Asian markets were trading in green after China said it would end quarantine for arrivals, spurring hopes for the revival of the world's second-largest economy and boosting oil which continued its upward surge on fears of Russian production cuts. European markets were trading higher as positive sentiment continues in the final trading days of 2022.

The BSE Sensex is currently trading at 60754.74, up by 188.32 points or 0.31% after trading in a range of 60405.66 and 60970.63. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.44%, while Small cap index was up by 1.24%.

The top gaining sectoral indices on the BSE were Metal up by 4.09%, Telecom up by 1.40%, Utilities up by 1.23%, Capital Goods up by 1.20% and Power was up by 1.18%, while FMCG down by 0.20%, Bankex down by 0.06% and Healthcare was down by 0.06% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 5.05%, Tata Motors up by 2.23%, Asian Paints up by 1.98%, Larsen & Toubro up by 1.64% and Wipro up by 1.30%. On the flip side, Hindustan Unilever down by 0.93%, Nestle down by 0.65%, HDFC Bank down by 0.51%, Mahindra & Mahindra down by 0.40% and ITC down by 0.37% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said that agrochemical players are likely to witness 15-17 per cent revenue growth in FY23, mainly driven by strong global and domestic demand. It said revenue is expected to grow by 10-12 per cent in the next financial year (FY24) as India continues to benefit from the China+1 strategy of global players and key molecules going off patent.

According to the report, higher operating leverage, derived from better cost absorption, will help sustain operating margins at 15-16 per cent in FY23 and FY24, despite input prices remaining elevated. Capital spending will continue at similar levels as in the past, but elongation in the working capital cycle will result in higher borrowings, as per the report. Export revenue is seen rising 18-20 per cent this fiscal, with the US dollar appreciating 9 per cent so far and volume growing as global players continue to de-risk their China dependency. Next fiscal, exports will likely grow 12-14 per cent as players keep up capex with an eye on molecules worth $4 billion going off-patent over the next two years. As a result, exports will remain the major contributor to the agrochemical sector accounting for 53 per cent of the total revenue.

Meanwhile, it said the domestic segment is expected to grow 12-14 per cent this fiscal, driven by a near-normal monsoon, higher realisations and improving farm sentiment. If a normal monsoon continues and the government focuses on improving farm incomes, the domestic segment will grow 10-12 per cent next fiscal.

The CNX Nifty is currently trading at 18091.80, up by 77.20 points or 0.43% after trading in a range of 17967.45 and 18134.05. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 5.71%, Tata Steel up by 5.05%, JSW Steel up by 4.85%, ONGC up by 2.44% and Tata Motors up by 2.23%. On the flip side, Apollo Hospital down by 1.05%, Hindustan Unilever down by 0.97%, Nestle down by 0.64%, HDFC Bank down by 0.55% and UPL down by 0.47% were the top losers.

Asian markets were trading in green, Nikkei 225 surged 42.00 points or 0.16% to 26,447.87, Jakarta Composite soared 87.22 points or 1.28% to 6,923.03, Shanghai Composite gained 30.01 points or 0.98% to 3,095.57, Taiwan Weighted strengthened 43.30 points or 0.3% to 14,328.43, KOSPI rose 15.65 points or 0.68% to 2,332.79 and Straits Times was up by 10.58 points or 0.32% to 3,268.28.

European markets were trading higher, France’s CAC increased 62.47 points or 0.96% to 6,567.37 and Germany’s DAX was up by 92.90 points or 0.67% to 14,033.83.