Sensex, Nifty add gains in early noon deals

Indian equity benchmarks added gains in early afternoon deals, with both Sensex and Nifty trading notably higher, aided by positive cues from other Asian markets along with heavy buying at Realty and Power counters. Sentiments were optimistic, as  Union Minister of Commerce & Industry, Piyush Goyal said that the present government’s ambition is to make India a fully developed nation by 2047 and all efforts are being made in this direction. Goyal said that the government’s ambition is to increase the current $3.7 trillion economy to be a $30-35 trillion economy by 2047 and to ensure food and energy security of the nation.

On the global front, Asian markets were trading mostly in green, after South Korea's consumer sentiment strengthened in February to the highest level in six months amid easing inflation. The survey results from the Bank of Korea showed that the consumer confidence index rose to 101.9 in February from 101.6 in the previous month. Further, this was the highest score since August 2023, when it was 103.3. On the sectoral front, sugar industry stocks were in watch, amid reports that the overall sugar production in 2023-24 is expected to witness a downslide owing to lower rainfall, which has led to lesser sugarcane plantation this year.

The BSE Sensex is currently trading at 72927.06, up by 218.90 points or 0.30% after trading in a range of 72510.24 and 72996.61. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.27%, while Small cap index was up by 0.07%.

The top gaining sectoral indices on the BSE were Realty up by 1.08%, Power up by 0.98%, Utilities up by 0.86%, Bankex up by 0.82% and Telecom up by 0.79%, while Energy down by 1.03%, Metal down by 0.92%, IT down by 0.75%, Auto down by 0.67% and Oil & Gas down by 0.67% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 4.23%, HDFC Bank up by 1.96%, NTPC up by 1.61%, Kotak Mahindra Bank up by 1.35% and Axis Bank up by 1.23%. On the flip side, Infosys down by 1.00%, HCL down by 0.99%, TCS down by 0.90%, ITC down by 0.66% and Wipro down by 0.58% were the top losers.

Meanwhile, Crisil Ratings in its latest report has said that the hospitality industry is expected to clock 11-13 per cent revenue growth in 2024-25 on steady domestic demand and a rise in foreign travellers. This revenue growth will follow a likely 15-17 per cent growth in the current financial year, backed by steady domestic demand and ramp-up in foreign travellers. The strong demand dynamics along with modest new supply will keep the operating performance of the industry healthy over the near term.

According to the report, the healthy operating performance will augur well for the industry profitability where the earnings before interest, taxes, depreciation, and amortization (EBITDA) will continue the strong momentum over the current and the next fiscal. This, along with limited capital expenditure, will keep the credit profiles strong.

The report further said the domestic travel demand, which remained a key driver this fiscal, will sustain next year as well. This momentum will be supported by healthy economic activity which drives business demand and continuing leisure travel demand, which reinvigorated post the pandemic. While the demand will remain strong, the growth rate is expected to taper off next fiscal due to high base. Consequently, the average room rates (ARRs) are expected to grow 5-7 per cent next fiscal as against 10-12 per cent this fiscal and the occupancy is expected to remain healthy at current levels of 73-74 per cent. On the other hand, the report said that the foreign tourist arrivals in India, despite a growth this fiscal, are estimated to remain 10 per cent below the pre-pandemic level and pick-up in the same will provide a fillip to the hotel demand next year.

The CNX Nifty is currently trading at 22162.60, up by 40.35 points or 0.18% after trading in a range of 22045.85 and 22177.50. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 4.34%, HDFC Bank up by 1.99%, NTPC up by 1.83%, Grasim Industries up by 1.79% and Kotak Mahindra Bank up by 1.48%. On the flip side, Hero MotoCorp down by 3.70%, Coal India down by 3.19%, Bajaj Auto down by 2.24%, BPCL down by 1.92% and Cipla down by 1.62% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 43.26 points or 0.27% to 16,198.87, Taiwan Weighted added 117.36 points or 0.63% to 18,753.16, Jakarta Composite gained 35.55 points or 0.49% to 7,332.25, Straits Times rose 10.25 points or 0.32% to 3,236.16 and Shanghai Composite strengthened 15.09 points or 0.52% to 2,925.63, while KOSPI dropped 22.47 points or 0.85% to 2,657.79 and Nikkei 225 slipped 106.77 points or 0.28% to 38,363.61.