Domestic indices magnify gains in afternoon session

Domestic equity indices magnified their gains and were trading higher by over one percent in afternoon session as market participants indulged in enlarging their positions. Hectic buying in ITC, Tech Mahindra, Tata Steel, Indusind Bank and HDFC Bank companies’ stocks helped the markets to magnify their gains. Positive cues from the global markets supported domestic sentiments. Traders overlooked report that Monetary Policy Committee (MPC) Member Nagesh Kumar said the ongoing economic slowdown in the country has become serious enough to demand immediate policy attention. Advocating for 25 basis points (bps) cut in the repo rate during the December MPC meeting, he highlighted the urgent need to address the dual challenges of declining growth and inflationary concerns. All the sectoral indices on the BSE were trading in green led by Realty, Metal, Oil & Gas, Energy and Bankex. 

On the global front, Asian markets were trading in green following positive cues from the US markets on Friday. Traders remained optimistic on an improved outlook for interest rates after data showing a slower than expected pace of acceleration in US consumer price inflation raised hopes for more interest rate cuts by the US Fed next year. Back home, in the stock specific development, SRM Contractors gained after the company secured an order worth Rs 106 crore from National Highway Authority of India (NHAI).  

The BSE Sensex is currently trading at 78833.51, up by 791.92 points or 1.01% after trading in a range of 78438.67 and 78918.12. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.65%, while Small cap index down by 0.29%.

The top gaining sectoral indices on the BSE were Realty up by 1.71%, Metal up by 1.69%, Oil & Gas up by 1.65%, Energy up by 1.44%, Bankex up by 1.13%.

The top gainers on the Sensex were ITC up by 2.34%, Tech Mahindra up by 2.29%, Tata Steel up by 1.85%, Indusind Bank up by 1.81% and HDFC Bank up by 1.69%. On the flip side, Zomato down by 0.83% and TCS down by 0.55% were the only losers.

Meanwhile, Council for Leather Exports (CLE) Chairman Rajendra Kumar Jalan has said that the country's leather and footwear exports are expected to grow by over 12 per cent to $5.3 billion in the current financial year (FY25) on account of healthy demand in key global markets. He also said several global companies, including from the US, are showing keen interest in setting up manufacturing bases in India.

He said order books are good for the coming months and huge demand is coming from the US and UK. Indian exporters are exploring business opportunities in Africa as well. He informed that the industry is labour intensive, providing employment to about 42 lakh people. The sector has a total turnover of about $19 billion, which includes exports of $5 billion.

He further said the sector has the potential to reach a total turnover of $47 billion by 2030, which includes the domestic production of $25 billion and export turnover of $13.7 billion. He also requested the government that the Production-Linked Incentive Scheme (PLI) be extended to the sector as it will help achieve the $47 billion export target and create additional jobs for about 7-8 lakh people. Talking about Budget expectations, he said the council has urged the finance ministry to consider removing export duty on wet blue and crust from 20 per cent at present.

The CNX Nifty is currently trading at 23854.40, up by 266.90 points or 1.13% after trading in a range of 23701.60 and 23869.55. There were 47 stocks advancing against 3 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 3.52%, Trent up by 3.48%, ITC up by 2.30%, Tech Mahindra up by 2.25% and Grasim Industries up by 2.08%. On the flip side, TCS down by 0.64%, Bajaj Auto down by 0.11% and Hero MotoCorp down by 0.09% were the few losers.

All Asian markets were trading higher; Hang Seng advanced 172.73 points or 0.88% to 19,893.43, Jakarta Composite gained 87.46 points or 1.24% to 7,071.33, Shanghai Composite strengthened 9.13 points or 0.27% to 3,377.20, Straits Times rose 32 points or 0.86% to 3,751.93, KOSPI increased 38.84 points or 1.62% to 2,442.99, Nikkei 225 surged 474.16 points or 1.23% to 39,176.06 and Taiwan Weighted added 594.38 points or 2.57% to 23,104.63.