The key benchmark indices displayed a positive bias throughout the trading day on Wednesday backed by suppotive global cues and encouraging macro economic data. Yesterday, after market hours, India reported Q2 GDP growth rate at 8.4 per cent, and the eight core-sector output for October also came in strong at 7.5 per cent.
Further, robust GST collections at Rs 1.31 trillion in November, the second highest since implementation. and a smart up-tick in manufacturing activity reading at 57.6 in November up from 55.9 in October lifted the market sentiment.
Earlier in the day, the markets started on a positive note taking cues from the neighbouring Asian indices. The BSE benchmark index, the Sensex, opened with a positive gap of 301 points, and extended gains on the back of buying in index Reliance, banking and IT shares. The BSE index touched a high of 57,846, and eventually ended with a gain of 620 points at 57,685.
The NSE Nifty touched a high of 17,213, and settled at 17,167, up 184 points.
Market Dashboard: Snapshot of key movers and shakers in trade today
The broader markets also ended in the positive zone. The BSE Midcap index surged 1 per cent, while the Smallcap index was up 0.3 per cent. The overall breadth was also positive.
IndusInd Bank was the major gainer among the Sensex 30 stocks, it reversed its 8-day fall with a 5.7 per cent rally. Axis Bank, SBI, Maruti, Tech Mahindra, Reliance Industries and ICICI Bank were the other major gainers, up 2-3 per cent each. Whereas, Dr.Reddy's, UltraTech Cement and Sun Pharma were the prominent losers.
In the broader markets, Aurionpro Solutions was locked at 5 per cent upper circuit at Rs 257.70 after the company announced order win from High Court of Madhya Pradesh for the complete digitisation and implementation of video surveillance systems and live audio-visual streaming system. This was the fifth straight upper circuit by the stock. READ MORE
Shares of Balrampur Chini Mills, Gujarat Narmada Valley Fertilizers and Chemicals (GNFC), Supreme Industries, Hindustan Copper and NBCC (India) rallied up to 9 per cent in intra-day trade, after these stocks were included in the Futures & Options segment with effect from December 31, 2021. READ MORE
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Among sectoral indices, the BSE Metal index surged 2.5 per cent. The Energy index also jumped 2 per cent. The Bankex advanced 1.8 per cent, and the auto index rallied 1.5 per cent.
In the primay market, the Initial Public Offer (IPO) by Tega Industries was fully subscribed within the first hour itself on the openig day. As of 03:30 PM, the issue was subscribed 3.8 times, with demand for retail quota at 6.7 times, and wealthy investors up to 2 times.
Star Health and Allied Insurance IPO was subscribed 18 per cent thus far. The retail quota recieved bids for up to 84 per cent.
Markets at 02:30 PM
LIVE market updates: The key benchmark indices have pared gains amid weakness in pharma shares and telecom major Bharti Airtel.
The BSE Sensex was up 452 points at 57,517, as against the day's high of 57,846. The NSE Nifty was up 135 points at 17,118. The broader indices were now mixed, with Midcap up 0.2 per cent, and the Smallcap down 0.2 per cent.
IndusInd Bank too had trimmed some of its gains, but was still up 4.2 per cent at Rs 923. Axis Bank, Tech Mahindra, SBI, Maruti and Reliance Industries were the other major gainers. On the flip side, Dr.Reddy's, UltraTech Cement, Sun Pharma and Titan were down 1-2 per cent each.
Meanwhile, markets in Europe have started trade on a positive note, the FTSE 100 has jumped over a per cent. DAX 30 and CAC 40 were up 0.7 per cent and 0.6 per cent, respectively.
The US futures also indicated a likley positive start after Tuesday's rout. Dow futures were up 0.3 per cent, and Nasdaq indicated a per cent gain at the opening bell.
Markets at Lunch (01:30 PM)
LIVE market updates: The key benchmark indices are holding steady gains in noon deals on the back of buying support in banking, metal and select IT and auto shares. Robust GST collection has also aided the market sentiment.
The Goods and services tax (GST) collections hit Rs 1.31 trillion in November; the second highest since India implemented the indirect tax system in 2017. READ MORE
"Looking ahead, collections may dip in December 2021, as suggested by the deceleration in the daily average e-way bill generation in the first three weeks of November 2021. Nevertheless, we expect CGST collections to rise to around Rs 5.8 trillion in FY2022, exceeding the FY2022 BE by nearly Rs 500 billion," said Aditi Nayar, chief economist at ICRA.
On the bourses, the Sensex was up 575 points at 57,640, and the Nifty had added 161 points to 17,144. The overall market breadth was also positive, with 1,791 advancing shares verus 1,344 declining stocks on the BSE.
IndusInd Bank and Axis Bank continue to remain the top gainers among the Sensex 30, while Dr.Reddy's and Sun Pharma have lost ground.
Among sectors, the Energy, IT, Bankex, auto and metal indices have rallied over a per cent each.
Elsewhere in Asia, Kospi and Straits Times surged around 2 per cent each. Hang Seng and Taiwan were up around a per cent each. Shanghai and Nikkei were up 0.4 per cent each.
Markets at 11:15 AM
LIVE market updates: After a strong Q2 GDP data, expansion of the Manufacturing PMI has bolstered investor confidence around a sustainable economic recovery.
The manufacturing PMI, which came in at a 10-month high of 57.6, was the highest reading since January and the fifth straight month of expansion.
Against this backdrop, the BSE Sensex rose 761 points, or 1.33 per cent, to 57,826 level. The Nifty50, too, was back above 17,200-mark, up 225 points.
The gains were led mainly by financials and auto stocks such as IndusInd Bank (up 5.6 per cent), Maruti Suzuki, Axis Bank, HDFC, and SBI. RIL, Tech M, and HCL Tech were also lending support to the benchmarks.
Among these, shares of IndusInd Bank moved higher by 5 per cent to Rs 929 on the BSE in Wednesday’s intra-day trade after a straight 8-day fall. In past eight trading days, the stock of private sector lender had declined 15 per cent. READ MORE
Primary market update: The initial public offer by Tega Industries has been subscribed 1.3 times so far on Day 1 backed by retail investors. The small investors' portion has been subscribed 2.6 times.
That of Star Health and Allied Insurance has been subscribed 14 per cent so far on Day 2.
Markets at 10 AM
Currency market: The rupee opened higher on Wednesday, at 74.96 per US dollar, relative to Tuesday's close of 75.16/$
Meanwhile, India's manufacturing activity grew at the fastest pace in 10 months in November, buoyed by a strong pick-up in demand, but higher inflationary pressure left factories worried about their future prospects, a private survey showed on Wednesday.
IndusInd Bank (up 3.7 per cent) was the top Sensex gainer, followed by Tech M, HDFC, NTPC, Tata Steel, and UltraTech Cement. Power Grid was the only loser on the index, down 0.2 per cent.
Sectorally, nearly all the key indices on the NSE were trading over 1 per cent higher with an exception of the Nifty Pharma and FMCG indices (up 0.8 per cent each).
LIVE market updates: The BSE Sensex and the Nifty50 indices were ruling over half a per cent higher in pre-open deals. The 30-pack index was at 57,364, up 299 points, while the 50-pack index was up 124 points at 17,107.
Among individual stocks, Bajaj Auto reported a 10 per cent decline in total sales for the month of October. READ MORE
(Updated at 8:17 AM)
LIVE market updates: Investors would be torn between positive domestic news but tepid global mood, leading to volatility on Dalal Street.
With its GDP growth rate at 8.4 per cent in Q2, India emerged as the fastest growing large economy in the world. However, it is yet to reach pre-Covid economic levels.
Globally, key US indices sank on Tuesday, after Fed chairman Jerome Powell hinted of wrapping up tapering of bond purchases a few months sooner, citing inflation risk. The Dow Jones (652 points) and S&P 500 indices slumped 1.9 per cent each, while the Nasdaq shed 1.6 per cent.
However, major markets across Asia-Pacific bounced back on Wednesday, following losses the day before that were triggered by renewed uncertainty on the omicron Covid variant.
Hang Seng and Kospi had rallied 1.2 per cent and 1.1 per cent, respectively. Nikkei and Straits Times added 0.3 per cent and 0.8 per cent. Shanghai and Taiwan were flat.
At 8:15 AM, SGX Nifty was at 17,155 level relative to Nifty's spot close of 16,983 on Tuesday.