Domestic indices trade higher with modest gains in early deals

Indian equity benchmarks made cautious start on Wednesday amid subdued cues from global peers after release of the US FOMC minutes, which revealed that the members want policy to remain restrictive for longer. Soon, domestic indices gained some traction and are trading higher with modest gains in early deals. Initially, sentiments were subdued amid foreign fund outflows. Provisional data from the National Stock Exchange showed that foreign institutional investors net offloaded shares worth Rs 455.59 crore on November 21. However, traders took encouragement with report that the Ministry of Finance (FinMin) is expecting to conclude the full financial year as projected with a strong growth performance and macroeconomic stability even as it flagged risks of demand taking a hit on fuller transmission of monetary policy, high inflation, uncertain external financial flows. India has projected a gross domestic product (GDP) growth of 6.5 per cent for FY24. Meanwhile, ahead of the Q2 GDP data release on November 30, domestic rating agency Icra has pegged the GDP growth at 7 per cent, while British brokerage Barclays see it at 6.8 per cent. 

On the global front, Asian markets are trading mostly lower as investors reacted to the hawkish FOMC minutes and Nvidia's earnings results released after the U.S. closing bell. back home, Tata Technologies IPO opens for subscription today in the price band of Rs 475 - Rs 500 per share. 

The BSE Sensex is currently trading at 66026.36, up by 95.59 points or 0.14% after trading in a range of 65835.54 and 66033.61. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.31%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.04%, Energy up by 0.73%, Healthcare up by 0.68%, Consumer Durables up by 0.66% and Utilities up by 0.51%, while Realty down by 0.49%, Capital Goods down by 0.18%, Industrials down by 0.14%, Metal down by 0.10% and Bankex down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 1.22%, Titan Company up by 0.79%, Reliance Industries up by 0.57%, Asian Paints up by 0.57% and Tata Motors up by 0.52%. On the flip side, Kotak Mahindra Bank down by 0.58%, ICICI Bank down by 0.50%, Indusind Bank down by 0.28%, TCS down by 0.22% and Maruti Suzuki down by 0.17% were the top losers.

Meanwhile, the Finance Ministry in the Monthly Economic Review report for October has said that the current financial year (FY24) should conclude as projected with a strong growth performance and macroeconomic stability as more than half of this fiscal has witnessed positive developments in the economy. The Reserve Bank of India (RBI) has projected a 6.5 per cent GDP growth in the current financial year ending March 2024. The ministry also said the downside risk will continue to be inflation that should keep both the government and the RBI on high alert.

The report said financial flows in the external sector need constant monitoring as they impact the value of rupee and the balance of payments, and added that a fuller transmission of the monetary policy may also temper domestic demand. On the inflation front, it said the decline in international crude oil prices and continued moderation in core inflation are likely to control inflationary pressures going forward. Recognising this trend, the report said the RBI has also indicated that any further tightening of monetary policy will likely occur when transmission is closer to completion and if the situation warrants.

It noted the government's sustained investment push, healthy corporate profits and a reduction in banks' non-performing loans will likely keep investment buoyant despite elevated input costs. India's exports are also expected to perform well, driven by strong performance in services exports. On balance, however, the report said India's growth experience in FY24 should continue to be a positive outlier as compared to other major economies. On the public finance side, the report said the central government is on track to achieve the budgeted deficit target for the current fiscal year as well.

Continued buoyancy in revenue collections supported by prudent expenditure management has enabled the fiscal deficit to be contained within 40 per cent of the Budget Estimate during the first half of the year. According to the report, the government's emphasis on capital expenditure has continued during the year as well imparting an impetus to private investment. It added that the recent steep and rapid decline in global crude oil prices removes an important source of potential impact on public finances as well.

The CNX Nifty is currently trading at 19818.90, up by 35.50 points or 0.18% after trading in a range of 19767.15 and 19820.40. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were BPCL up by 3.40%, Cipla up by 2.09%, Power Grid up by 1.27%, UPL up by 1.03% and Dr. Reddy's Lab up by 0.98%. On the flip side, Hindalco down by 1.09%, Adani Enterprises down by 0.77%, Kotak Mahindra Bank down by 0.66%, ICICI Bank down by 0.52% and Indusind Bank down by 0.35% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 149.43 points or 0.86% to 17,267.27, Jakarta Composite plunged 32.17 points or 0.46% to 6,929.62, Hang Seng declined 13.71 points or 0.08% to 17,720.18, Shanghai Composite weakened 8.77 points or 0.29% to 3,059.16 and KOSPI was down by 2.61 points or 0.1% to 2,507.81. On the other hand, Nikkei 225 surged 103.96 points or 0.31% to 33,458.10 and Straits Times was up by 10.42 points or 0.34% to 3,106.76.