Markets trade higher with marginal gains in early deals

Indian equity indices opened in green on last trading session of calendar year 2022. Markets are trading higher with marginal gains as the weekend factor and holiday mood kept traders at bay. Buying in sectoral indices led by Metal, Utilities, Power, Realty and PSU, aided the sentiments. Traders took engorgement as Reserve Bank of India (RBI) Governor Shaktikanta Das said the Indian economy is resilient with financial stability maintained with a well-capitalised banking sector, amid global uncertainties and shocks. Some support also came in as Union Commerce Minister Piyush Goyal said he expects at least two more free trade agreements to be signed up in 2023. He said negotiations are scheduled with the UK, European Union and Canada. Though, upside remained capped as traders turned cautious as data released by the Reserve Bank showed that the country's current account deficit widened to 4.4 per cent of the GDP in the quarter ended September, from 2.2 per cent of GDP during the April-June period, due to higher trade gap.

On the global front, Asian markets followed Wall Street higher on Friday, even as overall gains remained capped outside Hong Kong amid worries that a new COVID variant could emerge in China as the virus spreads widely and rapidly. Seoul's stock markets remain closed for New Year's holiday. Back home, in the primary market, Sah Polymers Rs 66.30 crore IPO opens for subscription today in the price band of Rs 61 - Rs 65. The issue closes on January 04, 2023. In stock specific development, Craftsman Automation soared after it signed a pact to buy 76 percent stake in DR Axion India Private Limited for Rs 375 crore.

The BSE Sensex is currently trading at 61293.61, up by 159.73 points or 0.26% after trading in a range of 61202.16 and 61392.68. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.79%, while Small cap index was up by 1.17%.

The top gaining sectoral indices on the BSE were Metal up by 1.41%, Utilities up by 1.14%, Power up by 1.07%, Realty up by 0.97%, PSU up by 0.92%, while Bankex down by 0.01% was the sole losing index on BSE.

The top gainers on the Sensex were Tata Steel up by 2.24%, Bajaj Finance up by 2.02%, Bajaj Finserv up by 1.96%, Tata Motors up by 1.20% and Titan Company up by 1.07%. On the flip side, Indusind Bank down by 0.60%, Asian Paints down by 0.56%, HDFC Bank down by 0.52%, ICICI Bank down by 0.39% and Mahindra & Mahindra down by 0.38% were the top losers.

Meanwhile, expressing optimism over India’s economic situation, the Reserve Bank of India (RBI) Governor Shaktikanta Das has said amid global shocks and challenges, the Indian economy presents a picture of resilience and the regulators are ready to take appropriate actions to preserve financial stability. In his foreword to the 26th Financial Stability Report (FSR), he said the international economic order stands challenged and financial markets are in turmoil due to monetary tightening in most parts of the world.

He also said food and energy supplies and prices are under strain, debt distress is staring at many emerging market and developing economies, and every economy is grappling with multiple challenges. He said ‘Domestic financial markets have remained stable and fully functional. The banking system is sound and well-capitalised’. In spite of formidable global headwinds, he said that India’s external accounts remain well-cushioned and viable.

Das said that core issues of management of climate change, dealing with unanticipated and fresh shocks, if any, further strengthening the buffers of financial system, harnessing fintech innovations and deepening financial inclusion will continue to receive priority attention from regulators and policy makers. He added that in 2023, India is well positioned to play a leading role in the world stage as part of its G20 presidency. He noted that the biggest challenge for G20 as a group is to re-ignite the efficacy of multilateralism.

He further said the central bank recognises the destabilising potential of global risks even as it draw strength from the robust macroeconomic fundamentals of the Indian economy. He said ‘the Reserve Bank and the other financial regulators remain vigilant and in readiness to ensure the stability and soundness of our financial system through appropriate interventions, whenever necessary, in the best interest of the Indian economy’.

The CNX Nifty is currently trading at 18239.75, up by 48.75 points or 0.27% after trading in a range of 18210.75 and 18265.25. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.28%, Bajaj Finserv up by 2.14%, Bajaj Finance up by 2.04%, ONGC up by 1.31% and Hindalco up by 1.29%. On the flip side, Eicher Motors down by 0.89%, SBI Life Insuran down by 0.78%, Indusind Bank down by 0.62%, Asian Paints down by 0.58% and ICICI Bank down by 0.54% were the top losers.

Asian markets are trading in green; Nikkei 225 surged 108.61 points or 0.42% to 26,202.28, Straits Times advanced 5.28 points or 0.16% to 3,254.52, Hang Seng jumped 157.37 points or 0.80% to 19,898.51, Taiwan Weighted rose 108.44 points or 0.77% to 14,193.46, Jakarta Composite added 10.90 points or 0.16% to 6,870.98 and Shanghai Composite was up by 18.80 points or 0.61% to 3,092.50.