Indices maintain gaining rally in early noon deals

Indian equity benchmarks maintained their gaining rally in early afternoon deals, with both Sensex and Nifty trading notably higher, aided by heavy buying at Consumer Durables and Utilities counters. Sentiments remained positive, as the Reserve Bank of India (RBI) in its latest data report on overseas direct investment has showed that India’s outward foreign direct investment (OFDI) surged 25.7 per cent on a year-on-year (Y-o-Y) basis to $2.09 billion in January 2024, compared to over $1.66 billion in January 2023. In December 2023, outward foreign direct investment stood $2.5 billion. Adding some relief, a private report stated that the government is mulling over introducing a new production-linked incentive (PLI) scheme for the pharmaceutical sector to boost the production of key chemicals critical to the manufacture of active pharmaceutical ingredients (APIs). In doing so, it aims to reduce Indian companies’ dependence on China for such supplies. 

On the global front, Asian markets were trading mixed, as Thailand's gross domestic product grew less than expected in the fourth quarter. The data released by the National Economic and Social Development Council showed that the economy expanded 1.7 percent on a yearly basis in final quarter of 2023. Although this was faster than the 1.4 percent rise seen in the third quarter, the rate missed forecast of 2.5 percent growth.

The BSE Sensex is currently trading at 72755.62, up by 328.98 points or 0.45% after trading in a range of 72308.68 and 72800.43. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.67%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.82%, Utilities up by 1.54%, Telecom up by 1.45%, Power up by 1.12% and FMCG up by 1.03%, while Realty down by 0.61% and Capital Goods down by 0.24% were the only losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.50%, Bajaj Finance up by 2.17%, ICICI Bank up by 1.81%, ITC up by 1.61% and Maruti Suzuki up by 1.44%. On the flip side, Larsen & Toubro down by 1.05%, TCS down by 0.71%, Tata Motors down by 0.70%, Wipro down by 0.35% and Axis Bank down by 0.16% were the top losers.

Meanwhile, the government data has showed that India's power consumption increased 7.5 per cent on-year to 1354.97 billion units (BU) in the April-January period of fiscal 2023-24 from 1259.49 BU in the April-January period of previous fiscal, indicating an uptick in economic activities across the country. It was 1505.91 BU in the entire fiscal year of 2022-23.  

Power consumption in January rose 5.4 per cent to 133.18 BU, compared to 126.30 BU. The peak power demand met -- the highest supply in a day -- rose to 222.32 GW in January 2024. The peak power supply stood at 210.72 GW in January 2023 and 192.18 GW in January 2022.

The power ministry had estimated the country's electricity demand to touch 229 GW during the summer in 2023. The demand did not reach the projected level in April-July due to unseasonal rains. The peak supply, however, touched a new high of 224.1 GW in June before dropping to 209.03 GW in July. Peak demand touched 238.82 GW in August. In September 2023, it was 243.27 GW. The peak demand was 222.16 GW in October, 204.77 GW in November and 213.62 GW in December 2023.  

The CNX Nifty is currently trading at 22152.45, up by 111.75 points or 0.51% after trading in a range of 22021.05 and 22167.25. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Grasim Industries up by 2.81%, Bajaj Auto up by 2.45%, Bajaj Finserv up by 2.36%, Bajaj Finance up by 2.18% and UPL up by 1.75%. On the flip side, SBI Life Insurance down by 1.26%, HDFC Life Insurance down by 1.07%, Larsen & Toubro down by 1.03%, TCS down by 0.69% and Tata Motors down by 0.68% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 28.55 points or 0.15% to 18,635.80, Shanghai Composite strengthened 44.64 points or 1.53% to 2,910.54, KOSPI increased 31.50 points or 1.18% to 2,680.26 and Straits Times rose 13.74 points or 0.42% to 3,235.68, while Jakarta Composite plunged 21.12 points or 0.29% to 7,314.43, Hang Seng declined 136.14 points or 0.84% to 16,203.82 and Nikkei 225 slipped 16.86 points or 0.04% to 38,470.38.