Markets trade firm in early deals; Nifty surpasses 22K mark

Indian equity benchmarks extended their previous session’s rally with optimistic start on Monday to scale their record high levels. Domestic indices are trading firm in early deals with gains of over half a percent each after better-than-expected results from HCL Tech and Wipro, and market participants are eyeing the Q3 earning for more directional cues. Sentiments got some support as commerce and industry minister Piyush Goyal said there is great excitement about India globally and the country stands at a crucial juncture, ready to catapult into a $35-trillion economy in the next 24 years, marking an era of unprecedented growth. 

However, upside remained capped amid weak macro-economic. The index of industrial production (IIP) grew by a meagre 2.4 per cent in November compared to 11.7 per cent in October. On the other hand, the Consumer Price Index (CPI)-based retail inflation slightly rose to 5.69 per cent year-on-year (Y-o-Y) in December from 5.55 per cent in November.

On the global front, Asian markets are trading mixed, following the mixed cues from Wall Street on Friday, as traders reacted to news of agreement on a two-tranche stopgap bill to avert U.S. government shutdown. Energy stocks boosted the markets amid signs of an escalating conflict in the Red Sea region. 

Back home, stocks of two-wheelers industry were in focus as Vinod Aggarwal, President of the Society of Indian Automobile Manufacturers (SIAM), said the two-wheeler sales in India increased by 9.12 per cent Year-on-Year (Y-o-Y) to 17.075 million units in 2023 as the rural market continues to recover, and the overall economy shows strong growth. In stock specific development, Man Industries zoomed on receiving new orders worth Rs 400 crore.

The BSE Sensex is currently trading at 73095.61, up by 527.16 points or 0.73% after trading in a range of 73021.71 and 73288.78. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.12%, while Small cap index was up by 0.13%.

The top gaining sectoral indices on the BSE were IT up by 2.52%, TECK up by 2.01%, PSU up by 0.61%, Bankex up by 0.60% and Industrials up by 0.25%, while Power down by 0.47%, Metal down by 0.39%, Utilities down by 0.38%, Basic Materials down by 0.19% and Consumer Disc down by 0.18% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 8.37%, Tech Mahindra up by 4.77%, HCL Technologies up by 3.43%, Infosys up by 2.35% and HDFC Bank up by 1.50%. On the flip side, Bajaj Finance down by 0.72%, Power Grid down by 0.46%, Hindustan Unilever down by 0.42%, NTPC down by 0.37% and Asian Paints down by 0.30% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said the rate of rupee depreciation has come down and expressed hope that after 8-10 years, it will start appreciating against US dollar, helping the Indian economy to grow at faster pace. 

Unlike in the past, he said, the Reserve Bank of India and the finance ministry are working together to push the growth of the country. The government has taken a series of measures to boost economic growth and now India has become the fifth-largest economy in the world. He stated the rupee has stabilised now, otherwise it used to depreciate at a rate of 3-3.5 per cent annually. 

After the Modi government came to power in 2014, the rate of depreciation has come down to about 1.5 per cent. He added ‘In the next 10 years, this will reduce further to about 0.5-0.75 per cent. My personal belief is that after 8-10 years, the rupee will start appreciating and with that, the Indian economy will grow further at a faster rate.’ 

The CNX Nifty is currently trading at 22020.90, up by 126.35 points or 0.58% after trading in a range of 22019.15 and 22081.95. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Wipro up by 8.48%, Tech Mahindra up by 4.68%, HCL Technologies up by 3.56%, Infosys up by 2.36% and LTIMindtree up by 2.34%. On the flip side, HDFC Life Insurance down by 2.89%, Eicher Motors down by 1.35%, Tata Consumer Products down by 1.16%, Hindalco down by 0.95% and Hero MotoCorp down by 0.82% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 396.02 points or 1.11% to 35,973.13, Taiwan Weighted jumped 82.38 points or 0.47% to 17,595.21, Shanghai Composite strengthened 10.30 points or 0.36% to 2,892.28 and Straits Times rose 9.49 points or 0.3% to 3,201.21. On the other hand, Hang Seng declined 25.03 points or 0.15% to 16,219.55, Jakarta Composite fell 18.31 points or 0.25% to 7,222.83 and KOSPI was down by 0.93 points or 0.04% to 2,524.12.