Key gauges extend gains in morning deals

Indian equity benchmarks extended gains in morning deals, amid buying in blue-chip stocks like Adani Ports & SEZ, Indusind Bank and SBI amid firm trends in global markets. Sentiments remained positive as Economic Affairs Secretary Ajay Seth stated that second quarter GDP growth at 5.4 per cent is lower than the potential but exuded confidence that the second half to be better. He added several high-frequency indicators in the month of October are pointing towards that. Traders overlooked a private report that the recent decline in corporate earnings is likely to cast a shadow on the government’s direct-tax receipts and its fiscal position. Tax payment by listed companies was down 7 per cent year-on-year (Y-o-Y) in Q2FY25, their worst showing in the last four years and the first decline in corporate tax in seven quarters. Sector-wise, power stocks remained in watch as the government data showed that India's power consumption rose 5.14 per cent to 125.44 billion units (BU) in November as compared to the year-ago month. In November 2023, power consumption was 119.30 GW. On the global front, Asian markets are trading higher following the positive lead from Wall Street where a rally in the world’s largest technology companies drove stocks to fresh all-time highs. 

The BSE Sensex is currently trading at 80606.63, up by 358.55 points or 0.45% after trading in a range of 80244.78 and 80626.76. 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 0.71%, while Small cap index was up by 0.93%.

The top gaining sectoral indices on the BSE were PSU up by 0.99%, Oil & Gas up by 0.96%, Bankex up by 0.92%, Energy up by 0.91% and Industrials up by 0.78%, while FMCG down by 0.52% and Consumer Durables down by 0.13% were the few losing indices on BSE.

The top gainers on the Sensex were Adani Ports &SEZ up by 3.79%, Indusind Bank up by 1.88%, SBI up by 1.77%, HDFC Bank up by 1.52% and Axis Bank up by 1.19%. On the flip side, ITC down by 1.58%, Bharti Airtel down by 0.94%, Sun Pharma down by 0.57%, Kotak Mahindra Bank down by 0.48% and ICICI Bank down by 0.28% were the top losers.

Meanwhile, rating agency ICRA has said that it expects sequential revenue growth for India Inc in the December quarter, led by improved rural demand and uptick in government spending, additionally supported by the festival season. However, it said headwinds such as uneven urban demand and evolving global uncertainties could weigh on growth in the second half of the fiscal.

Further, it expects the operating profit margin (OPM) for India Inc to improve in the coming quarters. As a result, the credit metrics of India Inc in the October-December period of FY25 are estimated to improve with the interest coverage ratio in the range of 4.5-5 times, against 4.1 times in Q2 FY25.

Kinjal Shah, Senior Vice President and Co-Group Head -- Corporate Ratings, ICRA -- said while corporate India witnessed a muted sequential revenue growth in Q2 FY2025, led by the ongoing slowdown in urban demand, lower government spending amid monsoon-related disruptions, the same is expected to improve in the upcoming quarters. 

Shah added this would be supported by continued growth in consumption-oriented sectors like FMCG, retail as well as improved revenues in commodity-oriented sectors like iron and steel and cement, among others, led by uptick in government capex spending as well as increased rural demand.

The CNX Nifty is currently trading at 24395.50, up by 119.45 points or 0.49% after trading in a range of 24280.00 and 24399.00. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Adani Ports &SEZ up by 3.69%, Shriram Finance up by 3.02%, ONGC up by 2.04%, Cipla up by 1.85% and SBI up by 1.83%. On the flip side, ITC down by 1.51%, Trent down by 1.45%, Bharti Airtel down by 1.09%, Hindalco down by 0.57% and Sun Pharma down by 0.51% were the top losers.

All Asian markets are trading higher; Nikkei 225 surged 879.84 points or 2.28% to 39,392.86, Taiwan Weighted added 254.12 points or 1.12% to 22,991.05, Hang Seng advanced 69.62 points or 0.35% to 19,619.91, KOSPI increased 38.55 points or 1.57% to 2,493.03, Straits Times rose 38.37 points or 1.02% to 3,789.72, Jakarta Composite gained 100.41 points or 1.42% to 7,147.40 and Shanghai Composite strengthened 6.76 points or 0.2% to 3,370.74.