Markets magnify gains in late morning deals

Domestic equity markets magnified their rallies in late morning deals, with Sensex trading near 60800 level and Nifty recaptured 18100 mark, as market participants indulged in enlarging positions. Meanwhile, broader indices on the BSE were trading with gains in the range of 0.80-0.90%.  Positive cues from global markets supported domestic sentiments.  The sentiments were further supported by Indian rupee appreciating 34 paise to 82.32 against the dollar  at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks. Most of the sectoral indices on BSE were holding in green, with only exception of Consumer Durables counter. Stocks from TECK, IT, Metal, Power and Energy counters were the prominent gainers.

On the global front, Asian markets were mostly trading in green following the broadly positive cues from US markets on Friday, as data showing a drop in U.S. wage growth to a 50-year low and a contraction in U.S. service sector activity in the month of December helped ease concerns about aggressive policy tightening by the US Federal Reserve. Back home, in stock specific development, Titan Company dropped despite the company’s jewellery division (excluding bullion sales) reported around 11 per cent year-on-year (YoY) growth in the December quarter (Q3FY23).

The BSE Sensex is currently trading at 60798.16, up by 897.79 points or 1.50% after trading in a range of 60109.94 and 60802.18. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.86%, while Small cap index up by 0.81%.

The top gaining sectoral indices on the BSE were TECK up by 2.44%, IT up by 2.43%, Metal up by 1.52%, Power up by 1.40% and Energy up by 1.35%, while Consumer Durables down by 0.75% was the only losing index on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.51%, TCS up by 3.08%, Tech Mahindra up by 2.99%, Bharti Airtel up by 2.59% and Infosys up by 2.52%. On the flip side, Titan down by 1.65% and ICICI Bank down by 0.01% were the only losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that negotiations for bilateral free trade agreements with several countries are ‘well on track’ and India is also looking at some multilateral pacts that are fair and equitable for all the member countries. India has recently implemented a free trade agreement (FTA) with the UAE in May 2022 and on December 29, 2022 with Australia to boost bilateral trade and investments. The country is negotiating FTAs with countries including Canada, European Union and the UK.

The minister said in a trade agreement, two or more countries either significantly reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they ease norms to promote trade in services and investments. He said that it is in India's interest to enter into bilateral free trade agreements. He said ‘It's essential that agreements are balanced and they are in the best interest of both the countries, they address the sensitivities of both the countries and help us protect certain sectors which we need to protect.’

Talking about Regional Comprehensive Economic Partnership (RCEP), which India decided not to join, Goyal said it was a very unfair and unbalanced agreement and one of the member countries (China) in the RCEP group has a 'very opaque' trading system. Further, he said that going forward it is important to focus on quality products and services.  

The CNX Nifty is currently trading at 18115.60, up by 256.15 points or 1.43% after trading in a range of 17936.15 and 18118.30. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.57%, TCS up by 3.07%, Tech Mahindra up by 3.03%, Bharti Airtel up by 2.73% and Infosys up by 2.59%. On the flip side, Titan down by 1.64%, HDFC Life Insurance down by 0.20% and Bajaj Auto down by 0.15% were the only losers.

Asian markets were trading mostly in green; Taiwan Weighted strengthened 378.87 points or 2.64% to 14,752.21, Straits Times advanced 18.63 points or 0.57% to 3,295.35, Shanghai Composite gained 15.67 points or 0.5% to 3,173.31, KOSPI rose 58.87 points or 2.57% to 2,348.84 and Hang Seng increased 313.09 points or 1.49% to 21,304.73. However, Jakarta Composite lost 5.39 points or 0.08% to 6,679.17.