Sensex, Nifty trade with marginal gains in early afternoon deals

Indian equity benchmarks trimmed some of their gains but remained higher in early afternoon deals, aided by positive cues from other Asian markets along with buying at Realty and PSU counters. Traders took support with a private report stating that after remaining above the Reserve Bank's comfort level of 6 per cent for most part of this year, retail inflation is slowly easing, and efforts are likely to continue to further reduce it in the coming months amid global uncertainties. Besides, the finance ministry said that India's external debt stood at $610.5 billion in the second quarter of 2022-23, down by $2.3 billion from end-June 2022. The external debt to GDP ratio stood at 19.2 per cent as at end-September 2022 as compared to 19.3 per cent at end-June.

On the global front, Asian markets were trading mostly in green, after industrial output in South Korea rose a seasonally adjusted 0.4 percent on month in November. That beat forecasts for a decline of 0.8 percent following the 3.5 percent contraction in October. On a yearly basis, industrial output sank 3.7 percent - also topping expectations for a drop of 4.0 percent following the downwardly revised 1.2 percent contraction in the previous month (originally -1.1 percent). The index of all industry production was up 0.1 percent on month and 0.6 percent on year in November.

Back home, NBFCs stocks were in watch, after credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the funding profile of small and mid-sized non-bank finance companies (NBFCs) is improving, on the back of the resilience exhibited by them during COVID-19 and a build-up of track record.

The BSE Sensex is currently trading at 61230.98, up by 97.10 points or 0.16% after trading in a range of 61136.45 and 61392.68. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.64%, while Small cap index was up by 1.14%.

The top gaining sectoral indices on the BSE were Realty up by 1.05%, PSU up by 1.03%, Metal up by 1.02%, Consumer Durables up by 0.94% and Oil & Gas up by 0.73%, while Healthcare down by 0.24%, Bankex down by 0.10% and FMCG down by 0.10% were the few losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 3.22%, Bajaj Finance up by 2.62%, Titan Company up by 1.63%, Tata Steel up by 1.34% and Wipro up by 1.11%. On the flip side, ICICI Bank down by 0.93%, Bharti Airtel down by 0.79%, Nestle down by 0.62%, Indusind Bank down by 0.60% and HCL Technologies down by 0.56% were the top losers.

Meanwhile, the Reserve Bank of India (RBI), in the 26th issue of the Financial Stability Report (FSR) has said that banks' gross non-performing assets (NPA) ratio has fallen to a seven-year low of 5 per cent and the banking system remains sound and well-capitalised.

RBI also said the global economy is facing formidable headwinds with recessionary risks looming large. It pointed out that the interplay of multiple shocks has resulted in tightened financial conditions and heightened volatility in financial markets.

It further stated the Indian economy is confronting strong global headwinds. Yet, sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability. On inflation, it said though prices are elevated, frontloading of monetary policy actions and supply side interventions are easing the pressure.

The CNX Nifty is currently trading at 18212.75, up by 21.75 points or 0.12% after trading in a range of 18184.80 and 18265.25. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bajaj Finserv up by 3.35%, Bajaj Finance up by 2.55%, ONGC up by 2.14%, Hindalco up by 1.70% and Titan Company up by 1.63%. On the flip side, SBI Life Insurance down by 1.48%, Eicher Motors down by 1.36%, ICICI Bank down by 1.12%, Cipla down by 1.09% and Bharti Airtel down by 0.94% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 84.33 points or 0.43% to 19,825.47, Taiwan Weighted strengthened 52.67 points or 0.37% to 14,137.69, Shanghai Composite gained 18.44 points or 0.6% to 3,092.14, Jakarta Composite soared 13.08 points or 0.19% to 6,873.16, Straits Times advanced 7.16 points or 0.22% to 3,256.40 and Nikkei 225 surged 0.83 points or 0% to 26,094.50, while KOSPI fell 44.05 points or 1.93% to 2,236.40.