Domestic indices trade higher in late morning deals

Domestic equity indices traded higher with gains of over quarter a percent in late morning deals on account of buying by fund and retail investors. Hectic, buying in Kotak Mahindra, Bajaj Finance, NTPC, SBI and Power Grid heled the markets to trade higher. Sentiments got boost after Kotak Mahindra Bank's strong Q3 performance. The bank's notable growth in loans and deposits helped boost market sentiment, even in a challenging environment. There was some encouragement in the markets as Commerce and Industry Minister Piyush Goyal has said India would work with the European Union to develop cutting-edge technologies and secure critical raw material supply chains to strengthen economic ties. Meanwhile, Commerce Secretary Sunil Barthwal has said the government's target of $1 trillion export includes $250 billion from the engineering sector.

On the global front, Asian markets were trading mostly in green following positive cues from the US markets on Friday. Back home, on the BSE sectoral front, traders were seen pilling up positions in Telecom, Bankex, PSU, Utilities and Power, while selling was witnessed in Auto, FMCG, IT and Consumer Disc. 

The BSE Sensex is currently trading at 76923.71, up by 304.38 points or 0.40% after trading in a range of 76584.84 and 77017.54. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was down by 0.03%, while Small cap index up by 0.22%.

The top gaining sectoral indices on the BSE were Telecom up by 1.50%, Bankex up by 1.40%, PSU up by 1.11%, Utilities up by 0.81% and Power up by 0.79%, while Auto down by 0.54%, FMCG down by 0.20%, IT down by 0.17% and Consumer Disc down by 0.16% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 8.86%, Bajaj Finance up by 2.44%, NTPC up by 2.28%, SBI up by 1.60% and Power Grid up by 1.50%. On the flip side, Axis Bank down by 1.27%, TCS down by 1.09%, Maruti Suzuki down by 0.80%, Infosys down by 0.58% and Tata Motors down by 0.56% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its article on the ‘State of the Economy’ published in the January Bulletin has said that India’s economic growth is poised to rebound as domestic demand regains strength, though the stickiness in food inflation warrants careful monitoring. It also noted that the economic outlook for 2025 is divergent across countries with some loss of speed in the US; weak-to-modest recoveries in Europe and Japan; more moderate growth profiles in emerging and developing countries alongside a more gradual disinflation relative to advanced economies.

It stated ‘In India, there is a conducive quickening of high-frequency indicators of economic activity in the second half of 2024-25, bearing out the implicit pick-up in real GDP growth for this period in the annual first advance estimates of the NSO.’ It further said the headline inflation eased for the second successive month in December, although the stickiness in food inflation warrants careful monitoring of second order effects.

It mentioned ‘India’s economic growth is poised to rebound as domestic demand regains strength. Rural demand continues to gain momentum, reflecting a resilience in consumption, supported by brighter agricultural prospects.’ A revival in public capex on infrastructure is likely to stimulate growth in key sectors. It also noted that rising input cost pressures in the manufacturing sector, coupled with weather-related exigencies and global headwinds could, however, pose risks to this outlook. The central bank, however, said the views expressed in the Bulletin are of the authors and do not represent the views of the Reserve Bank of India. 

The CNX Nifty is currently trading at 23271.95, up by 68.75 points or 0.30% after trading in a range of 23170.65 and 23308.35. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 8.89%, Wipro up by 6.79%, Bajaj Finance up by 2.51%, NTPC up by 2.48% and SBI up by 1.85%. On the flip side, SBI Life down by 2.65%, HDFC Life down by 1.45%, Shriram Finance down by 1.45%, Axis Bank down by 1.33% and Trent down by 1.31% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 457.03 points or 2.28% to 20,041.09, Jakarta Composite gained 25.28 points or 0.35% to 7,179.94, Shanghai Composite strengthened 15.42 points or 0.47% to 3,257.24, Nikkei 225 surged 444.12 points or 1.14% to 38,895.58 and Taiwan Weighted added 148.05 points or 0.64% to 23,296.13. However, Straits Times fell 2.66 points or 0.07% to 3,808.12 and KOSPI dropped 3.69 points or 0.15% to 2,519.86.