Domestic indices trade lower in early deals

Domestic equity markets made negative start on Monday, underperforming their Asian peers. Benchmark indices are trading lower with cut of 0.22% each in early deals due to selling in Oil & Gas, Energy and FMCG stocks. Investors remained on sidelines and deferred from making any large moves ahead of RBI Monetary Policy Committee meeting starting today. The outcome of the meeting will come on December 07. There are expectations that the Reserve Bank of India MPC is likely to announce a 35 basis points (bps) rate hike. Market participants are awaiting services PMI data to be out later in the day. Traders overlooked Economic Advisory Council member Sanjeev Sanyal’s statement that India is capable of sustaining an economic growth of 9 per cent for many years, even as he asserted that a high sustained GDP growth rate is key for the world to achieve the 2030 Sustainable Development Goals (SDGs). Besides, after pulling out money from Indian equities market in the past two months, FPIs made a strong come back in November with a net investment of Rs 36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends.

Most of the Asian markets are trading higher as traders remain optimistic that the US Fed will slow the pace of interest rate hikes as early as next month. The easing of Covid-19 restrictions in China following mass protests against strict pandemic curbs is also aiding market sentiment. Meanwhile, the services sector in Japan continued to expand in November, albeit at a slower rate, the latest survey from Jibun Bank revealed on Monday with a PMI score of 50.3.

Back home, sugar industry stocks were in focus as industry body ISMA said India's sugar production has increased marginally to 47.9 lakh tonnes in the October-November period. Sugar marketing year runs from October to September. In stock specific development, Ion Exchange rose after the company bagged a Rs 343.36 crore order from Indian Oil Corporation. Dilip Buildcon advanced on order win worth Rs 702 crore.

The BSE Sensex is currently trading at 62732.07, down by 136.43 points or 0.22% after trading in a range of 62662.58 and 62939.63. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.09%, while Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were Metal up by 1.83%, Realty up by 0.15%, Industrials up by 0.14%, PSU up by 0.09%, while Oil & Gas down by 0.58%, Energy down by 0.48%, FMCG down by 0.43%, Power down by 0.41%, Utilities down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.05%, Indusind Bank up by 0.75%, Wipro up by 0.58%, Bajaj Finance up by 0.16% and SBI up by 0.16%. On the flip side, Nestle down by 0.76%, Bharti Airtel down by 0.75%, Titan Company down by 0.70%, Power Grid down by 0.68% and Mahindra & Mahindra down by 0.57% were the top losers.

Meanwhile, expressing optimism over India’s economic prospects, Economic Advisory Council member Sanjeev Sanyal has said India is capable of sustaining an economic growth of 9 per cent for many years, even as he asserted that a high sustained GDP growth rate is key for the world to achieve the 2030 Sustainable Development Goals (SDGs). He said India has a per capita income of only $2,200 and that has been achieved after several years of very high growth rate.

He said ‘Particularly for the Global South, sustaining high GDP growth rate is critical to achieving SDGs and without that, all we are doing will be re-distributing poverty. Even for relatively advanced countries, most of them have very high debt levels. For them also, sustained high level of GDP growth will be very important.’ Adopted in 2015 by the UN General Assembly, the SDGs are a collection of 17 global goals ‘for peace and prosperity for people and the planet, now and into the future’ that are intended to be achieved by 2030.

The goals are: no poverty, zero hunger, good health and well being, quality education, gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation and infrastructure and reduced inequalities. The remaining goals are: sustainable cities and communities, responsible consumption and production, climate action, life below water, life on land, peace, justice and strong institutions and partnerships for the goals.

He said that the GDP growth rate has been good for India despite the recent global crises, but there was still a scope to do better. As per the latest data, India's economic growth slowed to 6.3 per cent in the September quarter of 2022-23 on account of contraction in output of manufacturing and mining sectors, but the country continues to remain the fastest-growing major economy ahead of China which registered an economic growth of 3.9 per cent in July-September 2022.

The CNX Nifty is currently trading at 18654.25, down by 41.85 points or 0.22% after trading in a range of 18647.00 and 18728.60. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.80%, Tata Steel up by 2.28%, JSW Steel up by 1.84%, Indusind Bank up by 1.15% and UPL up by 0.94%. On the flip side, SBI Life Insurance down by 1.13%, Britannia Industries down by 1.02%, Adani Enterprises down by 0.96%, Titan Company down by 0.83% and Power Grid down by 0.82% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 rose 9.93 points or 0.04% to 27,787.83, Straits Times advanced 17.21 points or 0.53% to 3,276.35, Hang Seng surged 609.69 points or 3.26% to 19,285.04, Taiwan Weighted jumped 85.27 points or 0.57% to 15,055.95 and Shanghai Composite was up by 49.24 points or 1.56% to 3,205.38. On the other hand, KOSPI declined 12.78 points or 0.52% to 2,421.55 and Jakarta Composite was down by 11.51 points or 0.16% to 7,008.13.