Markets trade in fine-fettle after gap-up opening amid firm global cues

Indian equity benchmarks made gap-up opening on Tuesday following overnight rally on Wall Street as well as broadly positive cues from Asian counterparts. Markets are trading in fine-fettle with notable gains of around 0.70% each in early deals amid hefty buying in shares of ICICI Bank. Traders took some encouragement as the commerce ministry data showed that India’s exports of goods and services rose marginally by 0.4 per cent to $765.6 billion in 2023 despite global economic uncertainties. However, gains remained capped as Fitch Group said South Asian economies would be most affected, amid rising hostilities in the Red Sea due to Houthi attacks. They will experience the largest relative increase in maritime trade distance, shipping time, and costs as the crucial trade route remains inaccessible. It added that India’s economic forecast faces a significant risk in the event of a prolonged spell of disruptions. 

On the global front, most of the Asian markets are trading higher, boosted by a sharp rebound in Hong Kong stocks, with technology stocks leading the charge. The Japanese market also hit fresh 34-year highs as they await the Bank of Japan's policy decision later in the day. 

Back home, auto stocks are in focus with a private report that the average selling price of passenger vehicles in India has been increasing steadily over the years thanks to premiumisation, an increase in regulatory stringency, and faster adoption of sports utility vehicles (SUVs). In stock specific developments, Cipla and ICICI Bank surged following their Q3FY24 numbers. On the other hand, Zee Entertainment tumbled after Sony Pictures Networks India issued a termination notice to Zee Entertainment on their merger agreement. Sony has also sought $90 million in termination fees from Zee.

The BSE Sensex is currently trading at 71974.48, up by 550.83 points or 0.77% after trading in a range of 71827.09 and 72039.20. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.11%, while Small cap index was down by 0.17%.

The top gaining sectoral indices on the BSE were Utilities up by 1.42%, Power up by 1.41%, Healthcare up by 1.37%, Bankex up by 0.89% and TECK up by 0.81%, while Realty down by 0.48%, Basic Materials down by 0.15%, Metal down by 0.08% were the few losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 3.47%, Bharti Airtel up by 3.11%, ICICI Bank up by 2.99%, Power Grid up by 2.30% and NTPC up by 1.70%. On the flip side, Asian Paints down by 1.83%, HDFC Bank down by 1.36%, Hindustan Unilever down by 1.34%, Maruti Suzuki down by 0.76% and Indusind Bank down by 0.07% were the top losers.

Meanwhile, negotiations for a free trade agreement between India and the four-nation EFTA bloc are at an advanced stage as both sides have reached a shared understanding on key issues. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. India and the EFTA have been negotiating the pact, officially dubbed as Trade and Economic Partnership Agreement (TEPA), since January 2008 to boost economic ties. Commerce and Industry Minister Piyush Goyal held a meeting recently with Swiss Federal Councillor Guy Parmelin in Mumbai. Parmelin has said that officials are working around the clock to settle last details so that it can be signed as soon as possible. The last round of talks between the countries concluded on January 13.

Negotiations are held on various chapters, including trade in gods, rules of origin, intellectual property rights (IPRs), trade in services, investment promotion and cooperation, trade and sustainable development, and trade facilitation. EFTA has 29 free trade agreements (FTAs) with 40 partner countries, including Canada, Chile, China, Mexico, and Korea. Under free trade pacts, two trading partners significantly reduce or eliminate customs duties on the maximum number of goods traded between them, besides easing norms to promote trade in services and investments. 

EFTA countries are not part of the European Union (EU). It is an inter-governmental organisation for the promotion and intensification of free trade. It was founded as an alternative for states that did not wish to join the European community. India's exports to EFTA countries during 2022-23 stood at $1.92 billion against $1.74 billion in 2021-22. Imports aggregated at $16.74 billion during the last fiscal compared to $25.5 billion in 2021-22. According to the data of the commerce ministry, the trade gap is in favour of the EFTA group.

The CNX Nifty is currently trading at 21722.30, up by 150.50 points or 0.70% after trading in a range of 21686.95 and 21750.25. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Cipla up by 6.21%, Sun Pharma up by 3.30%, ICICI Bank up by 3.25%, Bharti Airtel up by 2.88% and Power Grid up by 2.21%. On the flip side, Asian Paints down by 1.75%, Britannia down by 1.42%, HDFC Bank down by 1.33%, Hindustan Unilever down by 1.22% and BPCL down by 0.86% were the top losers.

Asian markets are trading mostly in green; Hang Seng surged 367.85 points or 2.46% to 15,329.03, Nikkei 225 rose 38.64 points or 0.11% to 36,585.59, Taiwan Weighted advanced 24.79 points or 0.14% to 17,839.89, KOSPI added 8.81 points or 0.36% to 2,473.16 and Straits Times was up by 1.16 points or 0.04% to 3,150.28. On the other hand, Jakarta Composite fell 36.97 points or 0.51% to 7,210.96 and Shanghai Composite was down by 9.60 points or 0.35% to 2,746.74.