Domestic equities trade higher with marginal gains in early deals

Indian equity markets made positive start on Friday, after falling for five consecutive trading sessions, tracking overnight gains on Wall Street. Domestic equities are trading higher with marginal gains of 0.24 per cent each in early deals with Sensex and Nifty lingering above their crucial 59,700 and 17,550 levels, respectively. Broader indices were too trading higher garnering gains of around 0.30 per cent. Some support came in as the finance ministry stated that the Indian economy is estimated to grow by 7 per cent year-on-year in the current fiscal despite the global economy operating under an extremely challenging macroeconomic environment.

Though, upside remained capped amid mixed cues from Asian counterparts as the markets remain concerned over the outlook for interest rates after the US Fed's minutes offered few surprises but reiterated that the central bank will continue to raise interest rates in its battle against inflation. Closer home, rupee depreciated 8 paise to 82.73 against the US dollar in early trade, weighed down by the strength of the American currency in the overseas market. In stock specific developments, Zee Entertainment declined after it was barred from the F&O segment of the NSE. However, Spicejet was trading higher ahead of its December quarter results.

The BSE Sensex is currently trading at 59748.57, up by 142.77 points or 0.24% after trading in a range of 59733.25 and 59908.77. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.28%, while Small cap index was up by 0.32%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.64%, Realty up by 0.42%, IT up by 0.40%, TECK up by 0.39%, FMCG up by 0.33%, while Metal down by 1.47%, Utilities down by 0.67%, Oil & Gas down by 0.47%, Auto down by 0.45%, Power down by 0.44% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.16%, Bajaj Finserv up by 1.14%, Nestle up by 0.91%, Bharti Airtel up by 0.81% and Sun Pharma up by 0.80%. On the flip side, Mahindra & Mahindra down by 1.71%, Tata Steel down by 0.89%, Tata Motors down by 0.66%, Maruti Suzuki down by 0.44% and HDFC down by 0.26% were the top losers.

Meanwhile, the Finance Ministry in its latest monthly economic review for January 2023 has stated that the Indian economy is estimated to grow by 7 per cent year-on-year in the current fiscal (FY23) despite the global economy operating under an extremely challenging macroeconomic environment like the geopolitical tensions in Europe, spiralling energy, food and fertiliser prices, monetary tightening and inflationary trends having elevated the downside risks to the global economic outlook.

It noted that the measures announced in the union budget like a rise in capital expenditure, increased focus on infrastructure development, boost to the green economy, and initiatives for strengthening financial markets are expected to promote job creation and spur economic growth. It highlighted that measures announced for the MSME sector will likely reduce the cost of funds and aid small enterprises. Revision in tax slabs under the new personal income tax regime is expected to boost consumption, thus providing more impetus to economic growth.

It also said easier KYC norms, expansion of DigiLocker services, and overall impetus on digitisation and last-mile connectivity are predicted to strengthen financial markets. Besides, Predictions of a return of El Nino conditions in the Pacific could presage a weaker monsoon in India, resulting in lower output and higher prices. Similarly, as with prices, external deficits may be a lesser challenge in FY24 than in FY23, but close attention to trends in international trade and capital flows will be warranted.

The CNX Nifty is currently trading at 17552.45, up by 41.20 points or 0.24% after trading in a range of 17545.05 and 17599.75. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 2.66%, Bajaj Finserv up by 1.37%, Dr. Reddy's Lab up by 1.18%, Asian Paints up by 1.11% and Adani Ports & SEZ up by 1.11%. On the flip side, Hindalco down by 3.40%, ONGC down by 2.59%, Mahindra & Mahindra down by 1.94%, JSW Steel down by 1.62% and Adani Enterprises down by 1.55% were the top losers.

Asian markets are trading mixed; Hang Seng declined 273.79 points or 1.35% to 20,077.56, Taiwan Weighted lost 28.94 points or 0.19% to 15,586.47, Shanghai Composite weakened 22.9 points or 0.7% to 3,264.58 and KOSPI dropped 10.15 points or 0.42% to 2,428.94. On the other hand, Nikkei 225 surged 299.76 points or 1.11% to 27,404.08, Jakarta Composite gained 26.67 points or 0.39% to 6,866.12 and Straits Times was up by 15.38 points or 0.47% to 3,280.31.