Markets erase losses in late afternoon session

In volatile trading session, key benchmark indices once again entered into green territory to trade higher in late afternoon session following positive cues from European markets. The broader indices, the BSE Mid cap index and Small cap index traded with gains over a percent respectively. Traders took note of report that economic think tank Global Trade Research Initiative (GTRI) said French President Emmanuel Macron's visit as the chief guest for the Republic Day celebrations is likely to give a fillip to the ongoing talks for a comprehensive trade agreement between India and EU. The economic relationship between India and France is marked by significant business presence, trade, and investment. 

On the global front, Asian markets were trading mixed with Chinese and Hong Kong markets rallying on reports that Chinese authorities are preparing a package of measure to support the country's stock market. European markets were trading higher with tech stocks likely to be in focus after Netflix said its subscriber count reached an all-time high in the fourth quarter. Investor shrugged off the latest business activity readings showing that Germany's economic downturn worsened this month with both manufacturing and services activity contracting.

The BSE Sensex is currently trading at 70708.52, up by 337.97 points or 0.48% after trading in a range of 70001.60 and 70906.48. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 1.34%, while Small cap index was up by 1.37%.

The top gaining sectoral indices on the BSE were Telecom up by 3.22%, Metal up by 3.06%, PSU up by 2.58%, Basic Materials up by 1.86% and Utilities was up by 1.58%, while Bankex down by 0.77% and Realty was down by 0.58% the only losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.80%, Power Grid up by 2.98%, Tech Mahindra up by 2.69%, JSW Steel up by 2.57% and NTPC up by 2.53%. On the flip side, Axis Bank down by 3.53%, ICICI Bank down by 3.02%, Asian Paints down by 2.10%, TCS down by 0.92% and Kotak Mahindra Bank down by 0.57% were the top losers.

Meanwhile, the health of the Indian private sector economy improved substantially in January, as a sharper upturn in new work intakes fuelled output growth. The first ever HSBC Flash India PMI data showed that operating capacities remained under pressure, encouraging firms to hire additional workers. Another factor that underpinned job creation was a pick-up in business confidence. The inaugural flash results also highlighted an intensification of cost pressures, but selling prices were raised to a smaller extent.

The headline HSBC Flash India Composite PMI Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was at 61.0 in January, inside expansion territory for the thirtieth successive month. Moreover, rising from 58.5 in December, the latest figure pointed to the sharpest rate of growth since September 2023. Service providers noted a stronger increase in activity than manufacturers, but growth accelerated in both cases.

As per the report, the rise in total new business inflows was supported by the most marked increase in international orders since last October. Higher sales were to clients based in Africa, Asia, Australia, Canada, Europe, the Americas and the Middle East. Goods producers again registered a quicker expansion in external orders than service providers. Amid ongoing improvements in new orders, the operating capacities of private sector firms in India remained under pressure at the start of the year.

The CNX Nifty is currently trading at 21358.75, up by 119.95 points or 0.56% after trading in a range of 21137.20 and 21408.60. There were 37 stocks advancing against 13 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.33%, Tata Steel up by 3.88%, Dr. Reddy's Lab up by 3.73%, Power Grid Corp up by 2.94% and Tech Mahindra up by 2.73%. On the flip side, Axis Bank down by 3.66%, ICICI Bank down by 3.02%, Asian Paints down by 2.12%, Adani Ports down by 1.44% and HDFC Life Insurance down by 1.24% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 545.89 points or 3.43% to 15,899.87, Shanghai Composite strengthened 49.79 points or 1.77% to 2,820.77, Straits Times rose 14.7 points or 0.47% to 3,149.95 and Taiwan Weighted was up by 1.24 points or 0.01% to 17,875.83. On the flip side, KOSPI dropped 8.92 points or 0.36% to 2,469.69, Jakarta Composite plunged 49.38 points or 0.68% to 7,206.85 and Nikkei 225 was down by 291.09 points or 0.8% to 36,226.48.

European markets were trading higher; UK’s FTSE 100 increased 30.5 points or 0.41% to 7,516.23, France’s CAC rose 28.48 points or 0.39% to 7,416.52 and Germany’s DAX was up by 145.55 points or 0.88% to 16,772.64.