Broader market trades firm

Key barometers further pared gains in mid-morning trade. At 11:26 IST, the barometer index, the S&P BSE Sensex, was up 36.08 points or 0.09% at 41,289.82. The Nifty 50 index was up 8.55 points or 0.07% at 12,177.

The undertone of the market was bullish after US President Donald Trump said that Phase 1 of the trade deal with China would be signed on 15 January. Meanwhile, the government's Rs 102 lakh crore infrastructure push to realise $5 trillion GDP goal also boosted sentiment.

The broader market continued to show resilience. The S&P BSE Mid-Cap index was up 0.14%. The S&P BSE Small-Cap index was up 0.36%.

The market breadth was positive. On the BSE, 1107 shares rose and 833 shares fell. A total of 125 shares were unchanged. In Nifty 50 index, 25 stocks advanced while 25 stocks declined.

Economy:

Finance minister Nirmala Sitharaman on Tuesday unveiled Rs 102 lakh crore of infrastructure projects that will be implemented in the next five years as part of the government's spending push in the infrastructure sector. The projects identified are in sectors such as power, railways, urban irrigation, mobility, education and health.

Meanwhile, India's current account deficit (CAD) shrank sharply in the September quarter to $6.3 billion or 0.9% of the gross domestic product (GDP) from 2% in the preceding quarter and 2.9% in the year-ago quarter. The contraction in the CAD was primarily on account of a lower trade deficit at $38.1 billion as compared with $50 billion a year ago.

India's fiscal deficit hit 114.8% of 2019-20 budget estimate at Rs 8.07 lakh crore at the end of November, according to the data released by the Controller General of Accounts (CGA). The country's fiscal deficit stood at Rs 7.17 lakh crore in the same period of the previous fiscal.

The fiscal deficit rose on the back of higher spending and lower revenue collection. The government has received nearly Rs 10 lakh crore, which is 48.6% of the annual target, while it incurred an expenditure of Rs 18 lakh crore, which is 65.3% of the annual target.

India's eight infrastructure sectors shrank for the fourth straight month in November at 1.5%, though the magnitude of contraction slowed from 5.8% in October. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Stocks in Spotlight:

Maruti Suzuki India was trading 0.21% lower at Rs 7351.90. The car major reported 11.5% decline in total auto sales to 1.33 lakh units in December 2019 compared with 1.50 lakh units in November 2018. Total sales, however, rose 3.9% last month compared with 1.28 lakh units in December 2018. Total domestic sales rose 3.5% to 1.25 lakh units while total exports sales jumped 10.2% to 7,561 units in December 2019 over December 2018.

Praj Industries jumped 2.49% after CRISIL reaffirmed its rating on company's long term facility at CRISIL AA with a stable outlook. The short term facility was reaffirmed at CRISIL A1+. The disclosure was made after market hours on Tuesday, 31 December 2019.

RITES was up 0.66% after credit rating agency Infomerics Valuation and Rating reaffirmed rating on company's short term bank facilities at IVR A1+

Foreign Market:

Asian markets are closed on account of the New Year holiday. In US, stocks finished Tuesday trade with modest gains on low volumes ahead of the New Year holiday on Wednesday.

US President Donald Trump said on Tuesday that Phase 1 of trade deal with China would be signed on 15 January at the White House. Trump tweeted that he would sign the deal with high level representatives of China and that he would later travel to Beijing to begin talks on the next phase.

The Phase 1 deal, struck earlier this month, is expected to reduce tariffs and boost Chinese purchases of American farm, energy and manufactured goods while addressing some disputes over intellectual property.

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