Domestic indices magnify gains in late morning deals

Domestic equity indices magnified their gains and were trading higher by over half a percent in late morning deals as market participants indulged in enlarging their positions. Hectic buying in NTPC, TCS, HCL and Tata Motors companies' stocks helped the markets to magnify their gains. Meanwhile, broader indices were also trading in green with the BSE Mid cap index and Small cap index trading in green in the range of 0.30-0.60%. Sentiments got boost as the U.S. Labor Department released a report showing an unexpected decrease in U.S. producer prices in the month of October. The Labor Department said its producer price index fell by 0.5 percent in October after rising by a revised 0.4 percent in September. The report reinforced expectations that the Federal Reserve is done raising interest rates. Besides, support also came in as CBDT (Central Board of Direct Taxes) Chairman Nitin Gupta said the government of India will exceed the Rs 18.23 lakh crore direct tax collection target set for the current fiscal.

On the global front, Asian markets were trading mixed as investors digested high-level discussions between the United States and China. U.S. President Joe Biden and Chinese President Xi Jinping met Wednesday outside of San Francisco in their first face-to-face meeting in a year. The talks were on the sidelines of the Asia-Pacific Economic Cooperation conference and were a part of efforts between the U.S. and China to boost high-level communication amid continued tensions. Back home, the sectoral indices, except Metal, on the BSE  were trading in green led by IT, TECK, Telecom, Oil & Gas and Utilities. 

The BSE Sensex is currently trading at 66082.05, up by 406.12 points or 0.62% after trading in a range of 65507.02 and 66114.99. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.57%.

The top gaining sectoral indices on the BSE were IT up by 1.42%, TECK up by 1.32%, Telecom up by 1.05%, Oil & Gas up by 0.77% and Utilities up by 0.77%, while Metal down by 0.02% was the only losing index on BSE.

The top gainers on the Sensex were NTPC up by 2.41%, TCS up by 2.21%, HCL up by 1.87%, Tata Motors up by 1.82% and Infosys up by 1.32%. On the flip side, Power Grid down by 1.19%, JSW Steel down by 0.21%, Axis Bank down by 0.12% and Maruti Suzuki down by 0.03% were the top losers.

Meanwhile, hief Economic Advisor (CEA) V Anantha Nageswaran has said that the increase of developing economies quota in the International Monetary Fund (IMF) can play a pivotal role in safeguarding global financial stability by enhancing the multilateral lending agency's permanent resources. He said the reforms of international financial institutions have to go beyond the World Bank and multilateral development banks (MDBs).

CEA has stated that the executive board of the IMF has proposed to the Board of Governors that a 50 per cent quota increase (should be) allocated to members in proportion to their current quotas. The 16th General Review of Quotas (GRQ) is likely to provide a greater say to developing economies in the International Monetary Fund. 

Nageswaran also pointed out that during the G20 summit in Delhi this year, the leaders remained committed to revisiting the adequacy of quotas and continuing the process of IMF's governance reform.

The CNX Nifty is currently trading at 19786.70, up by 111.25 points or 0.57% after trading in a range of 19627.00 and 19799.60. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were NTPC up by 2.51%, TCS up by 2.15%, Tata Motors up by 1.92%, HCL up by 1.80% and Hero MotoCorp up by 1.64%. On the flip side, Power Grid down by 1.17%, Hindalco down by 0.87%, UPL down by 0.58%, Adani Enterprises down by 0.44% and JSW Steel down by 0.34% were the top losers.

Asian markets were trading mixed; Shanghai Composite weakened 15.61 points or 0.51% to 3,057.22, Jakarta Composite plunged 27.8 points or 0.4% to 6,930.41, Hang Seng declined 215.43 points or 1.21% to 17,863.57, Nikkei 225 slipped 101.78 points or 0.3% to 33,417.92. However, Taiwan Weighted added 1 points or 0.01% to 17,129.78, Straits Times rose 4.02 points or 0.13% to 3,136.14 and KOSPI increased 1.94 points or 0.08% to 2,488.61.