Market drifts higher in early trade; breadth strong

Key indices are trading with modest gains in early trade on buying demand in index pivotals. Positive Asian stocks also boosted sentiment. The Nifty hovered at the 18,150 level. At 9:25 IST, the barometer index, the S&P BSE Sensex, added 309.49 points or 0.51% at 60,926.59. The Nifty 50 index rose 94.25 points or 0.52% at 18,150.75.

In the broader market, the S&P BSE Mid-Cap index added 0.48% while the S&P BSE Small-Cap index rallied 0.72%.

The market breadth was strong. On the BSE, 2,220 shares rose and 579 shares fell. A total of 67 shares were unchanged.

Foreign portfolio investors (FPIs) bought shares worth Rs 111.91 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 378.74 crore in the Indian equity market on 11 January, provisional data showed.

Results Today:

IT majors Infosys (up 0.75%), Tata Consultancy Services (down 0.17%) and Wipro (up 0.51%) will release their December quarter earnings today, 12 January 2022.

Stocks in Spotlight:

UltraTech Cement rose 0.7%. The cement major announced the commissioning of Line II of the Bara Grinding Unit in Uttar Pradesh, having cement capacity of 2 mtpa.

DLF gained 2.42%. The realty major has clocked sales worth approximately Rs 1500 crore for towers in the first phase of the newly launched luxury residential project, ONE Midtown.

Tata Teleservices (Maharashtra) was locked in a lower circuit of 5% at Rs 276.50. The company opted for converting the interest from adjusted gross revenue dues amounting to Rs 850 crore to equity, following which the government will hold approx 9.5% in the company.

Global Markets:

Asian stocks are trading higher Wednesday as U.S. markets rallied overnight as comments from the Fed chief appeared to reassure investors.

US stock indices rose on Tuesday as investors were relieved that Federal Reserve Chair Jerome Powell's testimony to Congress did not include any major surprises.

Fed Chair Jerome Powell testified before a Senate committee on Tuesday as part of his re-confirmation process. Powell said that he expected a normalized supply chain to help ease inflation pressures in 2022 but said the Fed would not be afraid to hike rates further than projected if inflation remains high.

The World Bank Tuesday cut growth forecasts for the U.S., the Euro zone as well as China. It warned that high debt levels, rising income inequality and new coronavirus variants threatened the recovery in developing economies.

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