Key gauges trade marginally higher in morning deals

Indian equity benchmarks erased initial losses and were trading marginally higher in morning deals, led by gains in Industrials, Capital Goods and Telecom stocks. Traders took support with a report by economic think tank Global Trade Research Initiative (GTRI) stating that India's overall exports of goods and services in 2024 has estimated to cross $814 billion, an increase of 5.58 per cent. In 2023, the country's merchandise and services exports stood at $768.5 billion. However, gains were limited as some concern came with exchange data showed Foreign Institutional Investors (FIIs) offloaded Rs 4,645.22 crore in the capital markets on net basis on Tuesday. Separately, data released by the Controller General of Accounts showed that the government's capital expenditure in the April-November period of financial year 2024-25 (FY25) continued to contract with a 12.3 per cent decline year-on-year (Y-o-Y). On the global front, Asian markets remained closed for the New Year holiday. 

The BSE Sensex is currently trading at 78220.73, up by 81.72 points or 0.10% after trading in a range of 77898.30 and 78272.98. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.13%, while Small cap index was up by 0.70%.

The top gaining sectoral indices on the BSE were Industrials up by 0.57%, Capital Goods up by 0.54%, Telecom up by 0.39%, Healthcare up by 0.33% and FMCG up by 0.26%, while Realty down by 0.67%, Metal down by 0.38%, Oil & Gas down by 0.28%, Auto down by 0.27% and Basic Materials down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 0.85%, Bajaj Finance up by 0.81%, Bajaj Finserv up by 0.68%, Larsen & Toubro up by 0.55% and Mahindra & Mahindra up by 0.53%. On the flip side, Adani Ports &SEZ down by 0.79%, NTPC down by 0.75%, Tata Steel down by 0.69%, Tech Mahindra down by 0.61% and Power Grid Corporation down by 0.55% were the top losers.

Meanwhile, CRISIL in its latest report has said that India's current account deficit (CAD) is to remain in a safe zone at approximately 1 per cent of GDP for fiscal 2025, up from 0.7 per cent in the previous year. While geopolitical risks will require close monitoring, the strong financial inflows and a steady services trade surplus are expected to provide stability.

India's current account deficit (CAD) remained largely stable at $11.2 billion, or 1.2 per cent of GDP, in the second quarter (Q2) of fiscal 2025, compared with $11.3 billion (1.3 per cent of GDP) in the same period last year. However, sequentially, the CAD widened slightly from $10.2 billion (1.1 per cent of GDP) in the first quarter, as reported by the Reserve Bank of India. Despite pressures from a rising merchandise trade deficit, strong services exports and healthy remittances helped keep the CAD manageable.

The overall trade deficit rose to 3.4 per cent of GDP in Q2 FY25 from 2.9 per cent in the year-ago period, with the merchandise trade deficit increasing to 8.2 per cent of GDP from 7.5 per cent. Meanwhile, the services trade surplus rose to 4.9 per cent from 4.7 per cent. Additionally, the primary income account deficit reduced to 1 per cent of GDP from 1.4 per cent, while the secondary income account surplus grew to 3.2 per cent from 2.9 per cent.

The CNX Nifty is currently trading at 23656.60, up by 11.80 points or 0.05% after trading in a range of 23562.80 and 23683.60. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 1.41%, Asian Paints up by 0.85%, Britannia Industries up by 0.83%, Bajaj Finance up by 0.77% and Mahindra & Mahindra up by 0.62%. On the flip side, Bajaj Auto down by 1.84%, Eicher Motors down by 1.53%, Dr. Reddy's Lab down by 1.52%, Hindalco down by 1.39% and Adani Ports &SEZ down by 1.10% were the top losers.