Firm trade persists in morning deals

Key Indian benchmarks continued to trade firm in morning session, with the Sensex gaining more than 290 points, amid improved global sentiment. Sentiments remained positive as data with the BSE showing that Foreign Portfolio Investors (FPIs) remained net buyers on Monday, purchasing shares worth Rs 1,322.39 crore. Traders paid no heed towards the government data showing that retail inflation breached the RBI's comfort zone and rose to a three-month high of 6.52 per cent in January, mainly on account of a spike in food prices. Meanwhile, Commerce and industry minister Piyush Goyal has urged member countries of the IPEF group to focus on early deliverables which can benefit all the nations. Indo-Pacific Economic Framework (IPEF) was launched by the US and other partner countries of the Indo-Pacific region on May 23 last year in Tokyo. The 14 partner countries represent 40 per cent of global GDP and 28 per cent of global goods and services trade.

On the global front, Asian markets were trading mostly in green following the broadly positive cues from global markets overnight. However, traders remained on sidelines ahead of key U.S. inflation data due out later in the day. It is feared that a stronger-than-expected inflation reading could force the Fed to get more hawkish.

The BSE Sensex is currently trading at 60726.94, up by 295.10 points or 0.49% after trading in a range of 60550.25 and 60769.93. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.43%, while Small cap index was down by 0.46%.

The top gaining sectoral indices on the BSE were IT up by 1.24%, TECK up by 1.03%, Metal up by 0.33%, FMCG up by 0.24% and Energy up by 0.20%, while Utilities down by 1.56%, Realty down by 1.46%, Power down by 1.20%, Consumer Durables down by 0.34% and Healthcare down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Technologies up by 1.94%, Infosys up by 1.48%, Tech Mahindra up by 1.47%, Reliance Industries up by 1.35% and Mahindra & Mahindra up by 1.21%. On the flip side, Titan Co down by 1.20%, Indusind Bank down by 0.89%, Sun Pharma down by 0.73%, Asian Paints down by 0.71% and Tata Motors down by 0.66% were the top losers.

Meanwhile, rating agency Icra in its latest report has said that Inflation-linked toll rates of various road projects will see a moderate hike of 2-5 per cent in the next fiscal year due to falling wholesale price index.  It has revised down the outlook on the toll road sector to stable from positive for FY24, citing the easing wholesale price inflation which fell to 4.95 per cent in December 2022.

It mentioned the wholesale price index (WPI) based inflation is expected to fall further and is likely to settle at sub-2 per cent in March 2023. Accordingly, the inflation-linked hike in toll rate will be relatively modest at 2-5 per cent in FY24 compared to the 8.7-14.6 per cent hike in FY23.

On the change in the outlook to stable from positive, it said the revision primarily reflects the expected moderation in toll collection growth to 6-9 per cent in FY24, compared to a stellar 17-20 per cent growth in FY23, which was driven by a healthy toll rate increase on the back of high inflation as well as improved economic activity.

The CNX Nifty is currently trading at 17843.65, up by 72.75 points or 0.41% after trading in a range of 17800.05 and 17858.75. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were UPL up by 4.18%, HCL Technologies up by 1.99%, Infosys up by 1.48%, Tech Mahindra up by 1.45% and Reliance Industries up by 1.27%. On the flip side, Adani Enterprises down by 3.11%, Apollo Hospital down by 1.35%, Titan Company down by 1.22%, SBI Life Insurance down by 1.12% and Indusind Bank down by 0.95% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted added 107.97 points or 0.69% to 15,652.25, Hang Seng advanced 46.77 points or 0.22% to 21,211.19, KOSPI increased 13.24 points or 0.54% to 2,465.94, Jakarta Composite gained 19.58 points or 0.28% to 6,919.72 and Nikkei 225 surged 164.94 points or 0.6% to 27,592.26.

On the flip side, Shanghai Composite weakened 0.95 points or 0.03% to 3,283.21 and Straits Times fell 6.23 points or 0.19% to 3,318.47.