Domestic indices extend opening gains ahead of RBI policy outcome

Indian equity indices made slightly positive start on Wednesday tracking positive cues from Wall Street overnight and Asian counterparts. Markets soon extended their gains in early deals. Indices are trading with gains of over half a percent that lifted both the Sensex and Nifty over their psychological 60,600 and 17,800 levels, respectively. Though, broader indices underperforming larger counterparts and are trading with gains in the range of 0.10-0.20% ahead of the RBI MPC meet outcome. Investors will take cues from the RBI MPC meeting outcome which is scheduled to be announced later today. The Reserve Bank of India (RBI) is widely expected to raise rates by a modest 25 basis points following a gradual decline in the CPI imprint for November and December to below 6 per cent.

Most of the Asian markets are trading higher following the broadly positive cues from Wall Street overnight, in reaction to US Federal Reserve Chair Jerome Powell's remarks at the Economic Club of Washington that he expects 2023 to be a year of ‘significant declines in inflation’. Back home, Adani Group stocks were in focus with reports that Adani Ports will repay a debt of around Rs 50 billion ($604.6 million). The Group is also considering independent evaluation of issues relating to legal compliance, related party transactions and internal controls.

The BSE Sensex is currently trading at 60687.51, up by 401.47 points or 0.67% after trading in a range of 60324.92 and 60695.31. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.15%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were IT up by 1.15%, TECK up by 0.70%, Bankex up by 0.54%, Metal up by 0.51%, Capital Goods up by 0.28%, while Telecom down by 1.09%, Realty down by 0.56%, Utilities down by 0.48%, Power down by 0.38%, Oil & Gas down by 0.32% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 2.45%, TCS up by 1.61%, Reliance Industries up by 1.61%, Bajaj Finance up by 1.50% and HCL Technologies up by 1.22%. On the flip side, Power Grid down by 2.81%, Bharti Airtel down by 2.34%, Sun Pharma down by 0.72%, NTPC down by 0.61% and Maruti Suzuki down by 0.29% were the top losers.

Meanwhile, Finance minister Nirmala Sitharaman has asked Indian industry to partner with startups and use their solutions in developing products. She also sought to know from the captains of Indian industry to give 'out of the box' ideas on what could act as catalyst to boost investment.

She said ‘I find the pace at which startups and their solutions are moving. Actually the solutions are for you. But you should move as fast as they do or else you will be where you are and they will find newer industry or business activity for which they will come up with solutions which are lucrative and you are going to be where you are’. She also said ‘So I would think working together with startups for products... or for technology requirement is the need of the hour and you should now unhesitatingly partner to get that benefit’.

She said for the new sunrise sector, Production Linked Incentive (PLI) scheme can be a good incentive. She said ‘But I also think beyond PLI is there is anything that you think is that one little catalyst which can give you the lead, what is that’. She also urged industry to think of out-of-the-box investment drawing and technology drawing ideas, and out-of-the-box working together with startups to get your solutions. She said post-Covid the industry has started looking at the India opportunities beyond their own sectors and is calibrating investment plans in line with technology, SDG and sustainability imperatives.

On the suggestion of reducing Goods and Services Tax (GST) on cement from the current 28%, to bring down the cost of construction both for public works and private construction activities like housing, the finance minister said that the issue will be examined and if required will be considered for reference to the GST fitment committee.

The CNX Nifty is currently trading at 17841.00, up by 119.50 points or 0.67% after trading in a range of 17744.15 and 17853.55. There were 36 stocks advancing against 13 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Adani Enterprises up by 9.71%, Adani Ports & SEZ up by 6.26%, Ultratech Cement up by 2.49%, Reliance Industries up by 1.69% and Bajaj Finance up by 1.66%. On the flip side, Power Grid down by 2.74%, Bharti Airtel down by 2.49%, Coal India down by 2.46%, Hero MotoCorp down by 1.48% and Eicher Motors down by 1.32% were the top losers.

Asian markets are trading mostly in green; Hang Seng advanced 66.97 points or 0.31% to 21,365.67, KOSPI increased 32.89 points or 1.32% to 2,484.60, Straits Times rose 8.82 points or 0.26% to 3,389.66, Taiwan Weighted added 205.67 points or 1.34% to 15,606.58 and Jakarta Composite gained 6.77 points or 0.1% to 6,942.07. On the other hand, Nikkei 225 slipped 105.5 points or 0.38% to 27,579.97 and Shanghai Composite was down by 1.56 points or 0.05% to 3,246.53.