Benchmarks end with gains on first trading day of 2023

Indian equity benchmarks ended the first trading session of 2023 with gains of over half percent each led by buying in Metal, Telecom and Realty stocks amid a firm trend in European markets. The benchmarks have made a positive start as sentiments got boost with the Finance Ministry stating that gross GST revenue receipts in December 2022 totalled nearly Rs 1.5 lakh crore, up 15% year-on-year. It mentioned monthly GST revenues more than Rs 1.4 lakh crore for 10 straight months in a row. Buying further crept in as a private survey showed that with business conditions improving to the greatest extent in over two years, India's manufacturers ended 2022 on a sweet note. Manufacturers scaled up production and the upturn in output was sharp and the best seen since November 2021. The manufacturing purchasing managers' index, compiled by S&P Global, rose to 57.8 in December from November's 55.7. This reading is the highest since October 2020 and above the 50-mark that separates growth from contraction for an 18th straight month.

However, key gauges trimmed some of their gains in late afternoon deals, as some concern came with RBI’s data showing that India's forex reserves dropped by $691 million to $562.81 billion as of December 23, making it the second consecutive week of decline in the kitty. The overall reserves had dropped by $571 million to $563.499 billion in the previous reporting week, snapping afive-week trend of an increase in the kitty. But, markets soon gained traction to end near day’s high points, as traders got encouragement with data showing that the output of eight core industries increased by 5.4 per cent in November 2022 as against a 3.2 per cent growth in the same month last year on a better show by coal, fertiliser, steel, cement and electricity segments. Some optimism also came as a Labour Bureau stated that retail inflation for industrial workers eased to 5.41 per cent in November 2022 as compared to 6.08 per cent in October 2022 and 4.84 per cent in November 2021 mainly due lower prices of certain food items. Food inflation stood at 4.30 per cent in November 2022 against 6.52 per cent of the previous month and 3.40 per cent during the corresponding month a year ago.

On the global front, European markets were trading in green after a survey showed that the intensity of the eurozone manufacturing sector downturn eased in the final month of 2022. S&P Global's final manufacturing Purchasing Managers' Index (PMI) rose to 47.8 in December from November's 47.1, matching a preliminary reading. Asian markets ended mixed on Monday with most markets closed for New Year holidays. Seoul stocks closed lower on the first trading day of 2023 due to institutional selling. Weak economic data also weighed, with the country reporting its first annual deficit since the global financial crisis in December on high energy prices.

Finally, the BSE Sensex rose 327.05 points or 0.54% to 61,167.79 and the CNX Nifty was up by 92.15 points or 0.51% to 18,197.45.

The BSE Sensex touched high and low of 61,222.79 and 60,764.63, respectively. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.57%, while Small cap index was up by 0.84%.

The top gaining sectoral indices on the BSE were Metal up by 2.83%, Telecom up by 1.32%, Realty up by 0.99%, Industrials up by 0.76% and Financial Services up by 0.61%, while Consumer Durables down by 0.55%, Healthcare down by 0.27% and Power down by 0.12% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 5.86%, Tata Motors up by 1.73%, ICICI Bank up by 1.35%, Mahindra & Mahindra up by 1.09% and Reliance Industries up by 1.06%. On the flip side, Asian Paints down by 1.47%, Titan Company down by 1.24%, Tech Mahindra down by 0.69%, Sun Pharma down by 0.36% and Bajaj Finance down by 0.26% were the top losers.

Meanwhile, the Finance Ministry has said that Goods and Services Tax (GST) collections for December 2022 stood at Rs 1,49,507 crore -- 2.5 per cent more than Rs 1,45,867 crore collected in November 2022. On year-on-year basis, GST revenue collected for December 2022 was 15 per cent higher than collections of December 2021, which was Rs 1,29,780 crore.

It mentioned monthly GST revenues more than Rs 1.4 lakh crore for 10 straight months in a row. The gross GST revenue collected during December 2022 is Rs 1,49,507 crore, of which CGST is Rs 26,711 crore, SGST is Rs 33,357 crore, IGST is Rs 78,434 crore (including Rs 40,263 crore collected on import of goods) and cess is Rs 11,005 crore (including Rs 850 crore collected on import of goods).

Moreover, it stated that the government has settled Rs 36,669 crore to CGST and Rs 31,094 crore to SGST from IGST as regular settlement. The total revenue of the Centre and the states after regular settlements in December 2022 is Rs 63,380 crore for CGST and Rs 64,451 crore for the SGST.

The CNX Nifty traded in a range of 18,215.15 and 18,086.50. There were 31 stocks advancing against 18 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Tata Steel up by 5.73%, Hindalco up by 2.78%, ONGC up by 2.66%, Tata Motors up by 1.82% and ICICI Bank up by 1.35%. On the flip side, Divi's Lab down by 1.27%, Titan Company down by 1.24%, Asian Paints down by 1.24%, Bajaj Auto down by 1.14% and Hero MotoCorp down by 0.83% were the top losers.

European markets were trading in green; France’s CAC increased 85.92 points or 1.33% to 6,559.68 and Germany’s DAX increased 122.03 points or 0.88% to 14,045.62.

Asian markets ended mixed on the first trading day of 2023 with most markets, including Japan and China, were closed for New Year holidays. Seoul shares declined on institutional selling pressure and weakness in Wall Street indices last Friday. Meanwhile, South Korea reported a trade deficit of $47.2 billion in 2022, marking the first annual trade deficit since 2008. Indonesian shares finished flat after the country's inflation rose slightly in December and remained above the central bank's target range for the seventh straight month.