Markets trade slightly in green in late morning deals

Domestic equity markets traded slightly in green amid volatility in late morning deals. Buying in Ultratech Cement, Power Grid, Tata Motors and ITC helped the markets to trade above neutral lines. Meanwhile, broader indices outperformed their large peers with BSE Mid cap and Small cap index gaining in the range of 0.60-0.65%. Traders were getting some encouragement as Union Home Minister Amit Shah said India will become a $5 trillion economy by the end of 2025. Meanwhile, Chief Economic Advisor V Anantha Nageswaran said the country’s economic growth can become faster if the much-awaited private capital formation kicks into higher gear. He said that post-COVID financial balance sheets of corporates have been positive. However, gains remained limited, as traders were cautious ahead of key economic data releases due this week from both India and the U.S.

On the global front, Asian markets were trading mixed on signs that China's deflation situation is deepening. China's consumer prices fell the fastest in three years in November and producer price inflation fell further into negative territory, underscoring the challenges facing the world's second-largest economy. Back home, in the stock specific development, Lloyd Metals surged after its Board approved the expansion of the iron ore mining capacity of the company upto 55 million tonnes per annum.   

The BSE Sensex is currently trading at 69917.11, up by 91.51 points or 0.13% after trading in a range of 69794.50 and 70057.83. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.60%, while Small cap index up by 0.63%.

The top gaining sectoral indices on the BSE were PSU up by 1.01%, Oil & Gas up by 0.79%, Utilities up by 0.76%, Energy up by 0.71% and Basic Materials up by 0.70%, while Healthcare down by 0.57% was the only losing index on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.48%, Power Grid up by 1.25%, HCL up by 1.09%, Tata Motors up by 1.06% and ITC up by 0.90%. On the flip side, Axis Bank down by 0.81%, Asian Paints down by 0.74%, Bharti Airtel down by 0.73%, Wipro down by 0.60% and Hindustan Unilever down by 0.45% were the top losers.

Meanwhile, Union minister Piyush Goyal has said that India is aiming to achieve the $2 trillion export target by 2030 and in the process it is moving this industry out of the government support to make it self-sustaining and cost competitive. Addressing Infinity Forum 2.0 virtually at Gujarat Finance Tec-City (GIFT City), he said the International Financial Services Centre (IFSC) at GIFT City has become a lynchpin in propelling India's export-led growth. He noted that GIFT City will play a pivotal role in powering India's exports to $2 trillion by 2030, and then onwards to up to $10 trillion that it envisages to see by 2047. 

The minister further said ‘during the next 2-3 decades we hope to see sustained, inclusive growth, during which we are confident of offering sustainable and inclusive development for every single person in the country. In that story, our international engagements will play a very important role’. He said India's target of crossing a $1 trillion economy in the next three years, having $1 trillion of merchandise and $1 trillion of service--collectively $2 trillion of exports by 2030- will have a massive impact on the country's economy. He stated that this export-led growth will create jobs and work opportunities for youth, give a boost to 'Make In India', further opportunities to Start Up India vision, and encourage new innovators to come up with brilliant ideas.

He further said this will have a huge impact on India's macroeconomic fundamentals, with a stronger infusion to $600 billion foreign kitty, further strengthening its positioning both as a global economy and ensuring its fast-track growth.  He said IFSC, in the coming years, will become a big source both for finance and insurance and other aspects of India's growth story. He added that GIFT City can play a very important role in three areas -- global finance and accounting, export of educational services, and consultancy and advisory services.

The CNX Nifty is currently trading at 21002.65, up by 33.25 points or 0.16% after trading in a range of 20923.70 and 21026.10. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 2.86%, Adani Ports up by 2.20%, ONGC up by 1.74%, UPL up by 1.62% and Ultratech Cement up by 1.34%. On the flip side, Dr. Reddy's Lab down by 5.34%, Cipla down by 1.27%, Wipro down by 0.75%, Axis Bank down by 0.75% and Apollo Hospital down by 0.72% were the top losers.

Asian markets were trading mixed; Hang Seng declined 259.35 points or 1.59% to 16,075.02, Straits Times fell 25.54 points or 0.82% to 3,085.19, Shanghai Composite weakened 2.13 points or 0.07% to 2,967.43 and Jakarta Composite plunged 40.27 points or 0.57% to 7,119.33. However, Nikkei 225 surged 528.52 points or 1.64% to 32,836.38, Taiwan Weighted added 9.55 points or 0.05% to 17,393.54 and KOSPI increased 5.29 points or 0.21% to 2,523.14.