Key gauges end marginally higher on Tuesday

Indian equity benchmarks, after facing bouts of volatility during the session, ended with gains for the second consecutive day on Tuesday amid a largely firm trend in global markets. After opening in the negative territory, key gauges soon turned positive to trade with marginal gains as traders took support with Assocham’s statement that India's economy is expected to navigate rough global weather in 2023 due to resilient consumer demand, better corporate performance and abating of inflation, even as the year is likely to be full of challenges and opportunities. Traders also took a note of the Ports, Shipping and Waterways minister Sarbananda Sonowal's statement that public-private partnership in port infrastructure has been an important source of investment in the sector and the Ministry of Ports, Shipping and Waterways (MoPSW) has a pipeline of 44 projects for total investment of Rs 22,900 crore till 2024-25.

However, markets erased gains and once again fell into red terrain in afternoon deals, amid foreign fund outflows. Foreign institutional investors (FII) net sold shares worth Rs 212.57 crore on January 2, as per provisional data available on the NSE. Traders were also concerned as the IMF chief has said that one third of the global economy will be in recession this year, and warned that 2023 will be tougher than last year as the US, EU and China will see their economies slow down. Some concern also came as the economic think tank Global Trade Research Initiative (GTRI) said that the Indian economy and exports will be moderately impacted in 2023 by weak global demand and recession in large economies and to improve its current account, the country should aim at reducing energy import bill. GTRI said that in 2022, India will pay USD 270 billion in imports of crude oil and coal, which is about 40 per cent of total merchandise import bill. But, markets managed to end the session in green terrain led by Consumer Durables, Healthcare and IT stocks.

On the global front, European markets were trading higher as investors awaited German consumer price data expected to confirm the gradual easing that started last month. Official data released earlier today showed Germany's unemployment rate held steady at seasonally adjusted 3.0 percent in November. The number of people out of work decreased 6,500 from October to 1.32 million. Asian markets ended mostly higher on Tuesday as investors digested disappointing Chinese data and awaited a slew of U.S. economic data this week for clues on the economic and interest-rate outlook. Minutes of the Federal Reserve's latest meeting are scheduled to be released on Thursday followed by U.S. employment data on Friday. The upcoming corporate earnings season also remained on investors' radar.

Finally, the BSE Sensex rose 126.41 points or 0.21% to 61,294.20 and the CNX Nifty was up by 35.10 points or 0.19% to 18,232.55.

The BSE Sensex touched high and low of 61,343.96 and 61,004.04, respectively. There were 17 stocks advancing against 12 stocks declining, while 1 stock remained unchanged on the index.

The broader indices ended in green; the BSE Mid cap index rose 0.22%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.56%, Healthcare up by 0.67%, IT up by 0.65%, Bankex up by 0.58% and TECK up by 0.53%, while Metal down by 0.55%, FMCG down by 0.36% and Auto down by 0.36% were the few losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.25%, Titan Company up by 1.87%, TCS up by 1.54%, Tech Mahindra up by 1.44% and Sun Pharma up by 1.21%. On the flip side, Mahindra & Mahindra down by 1.13%, Reliance Industries down by 0.70%, Hindustan Unilever down by 0.69%, Tata Steel down by 0.67% and Asian Paints down by 0.59% were the top losers.

Meanwhile, Minister of State for Electronics and IT Rajeev Chandrasekhar has said online gaming companies will not be allowed to engage in betting on the outcome of games under the principle laid in draft rules.  The minister said that as of now, all permissible online gaming will need to be registered with a self-regulatory organisation that will be accountable to the online gaming rules.

He mentioned ‘As per the principles laid under the rule, wagering on the outcome of game will not be allowed. All online gaming companies will have to register with the self-regulatory body that will decide on the action required to be taken as per the rules.’

The Ministry of Electronics and IT has published draft rules for online gaming companies and has invited comments on the same by January 17. Chandrasekhar said the objective of the rule is to grow the online gaming sector and encourage innovation. He said that he expects the online gaming rules to be ready in early February.

The CNX Nifty traded in a range of 18,251.95 and 18,149.80. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were HDFC Life Insurance up by 4.54%, SBI Life Insurance up by 2.22%, Axis Bank up by 2.21%, Titan Company up by 2.07% and TCS up by 1.55%. On the flip side, Hindalco down by 1.70%, JSW Steel down by 1.01%, Britannia Industries down by 0.98%, Mahindra & Mahindra down by 0.94% and Reliance Industries down by 0.78% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 149.46 points or 2.01% to 7,601.20, France’s CAC increased 72.71 points or 1.1% to 6,667.28 and Germany’s DAX increased 177.17 points or 1.26% to 14,246.43.

Asian markets ended mostly higher on Tuesday ahead of minutes of the US Federal Reserve's latest meeting, with growing expectations that US interest rates will rise at a slower pace this year. Chinese shares gained despite disappointing Chinese economic data. The Caixin manufacturing Purchasing Managers' Index (PMI) edged down to 49 in December from 49.4 in the previous month, while the official manufacturing PMI fell to 47 in December from 48 in the previous month. However, uncertainty over China’s economic reopening and a warning from the International Monetary Fund on a potential recession limited further gains. Seoul shares declined on institutional selling pressure and as data showed factory activity in the country shrank in December, while overall orders posted its sharpest fall in two-and-a-half years.