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Indian equity benchmarks ended choppy session marginally in green in tandem with a similar recovery in other markets as investors waited for more details to assess the severity of the Omicron coronavirus variant on the world economy, allowing battered stock markets and oil prices to recover. The benchmarks staged a gap down opening, as traders remained cautious with report that as many as 438 infrastructure projects, each worth Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.34 lakh crore. Traders also took a note of Chief Economic Adviser (CEA) K V Subramanian’s statement that BRICS nations need to strengthen cooperation among themselves for supporting the recovery of BRICS economies and maintaining macro-economic and financial stability while protecting against future uncertainties and risks. Meanwhile, Industry body -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the GST Council to rationalise rates and stated that the current rates are not in sync with the demand creation and employment generation in the country.

However, key indices soon recovered their losses and traded on positive note as traders got some support as eminent economist Pinaki Chakraborty said that India's macroeconomic situation is certainly better than what it was a year ago, while expressing hope that the country will be back on the path of economic growth if there is no major third wave of the COVID-19 pandemic. Some support also came with Commerce and Industry Minister Piyush Goyal’s statement that bilateral trade between India and Canada stands at $10 billion currently and there is tremendous potential to take it to much higher levels. Goyal also said both sides have discussed the possibility of concluding the India-Canada comprehensive economic partnership agreement (CEPA), a kind of free trade pact, in two stages. Sentiments were also upbeat as foreign portfolio investors (FPI) have pumped in a net sum of Rs 5,319 crore in Indian capital markets despite a massive correction seen in equities. In October, they were net sellers to the tune of Rs 12,437 crore. However, the profit taking at higher levels capped the upside till the end.

On the flip side, Asian markets settled mostly lower on Monday, following the broadly negative cues from Wall Street, as worries about the global economy due to resurgence of coronavirus cases in Europe and the detection of a new and possibly vaccine-resistant coronavirus variant in South Africa hit global risk sentiment. European markets were trading higher despite rising concerns about a new coronavirus variant, Omicron. Back home, on the sectoral front, airline stocks were in focus as Union Health Ministry revised guidelines for international arrivals in India which will be effective from December 1. The existing guidelines have been revised in view of reporting of a new variant of SARS-CoV-2 (B.1.1.529; named Omicron) which has now been classified as a Variant of Concern by the World Health Organization. Stocks related to gem & jewellery sector were in watch as Commerce and Industry Minister Piyush Goyal asked the gem and jewellery industry to focus on areas like design, diversification of export product basket and lab grown diamonds with a view to boost outbound shipments and job creation.

Finally, the BSE Sensex rose 153.43 points or 0.27% to 57,260.58 and the CNX Nifty was up by 27.50 points or 0.16% to 17,053.95. 

The BSE Sensex touched high and low of 57,626.51 and 56,382.93, respectively and there were 13 stocks advancing against 17 stocks declining on the index.     

The broader indices were trading in red; the BSE Mid cap index was down by 0.93%, while Small cap index down by 1.90%.

The top gaining sectoral indices on the BSE were TECK up by 0.67%, IT up by 0.65%, Consumer Durables up by 0.54%, Energy up by 0.43% and Telecom up by 0.26%, while Utilities down by 2.61%, Realty down by 1.98%, Power down by 1.97%, Oil & Gas down by 1.51%, PSU down by 1.49% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 2.92%, HCL Technologies up by 2.25%, TCS up by 1.61%, Titan Company up by 1.60% and Bajaj Finance up by 1.41%. On the flip side, Sun Pharma down by 2.03%, NTPC down by 1.67%, Axis Bank down by 1.65%, Nestle down by 1.35% and Bajaj Auto down by 1.32% were the top losers.

Meanwhile, Industry body -- The PHD Chamber of Commerce and Industry (PHDCCI) has urged the GST Council to rationalise rates and stated that the current rates are not in sync with the demand creation and employment generation in the country. Pradeep Multani, President, PHDCCI, said ‘We urge the government to rationalise the GST rates into three major slabs of 5 per cent, 10 per cent and 15 per cent along with a few sin goods in the slab of 28 per cent’.

He suggested that items in category of 12 per cent rate should be reduced to 10 per cent and goods in the category of 18 per cent rate should be reduced to 15 per cent. He added that there should not be more than 25 items in the category of sin goods.

Multani said ‘The rationalisation of the tax slabs would create tremendous demand in the economy, subside the inflationary pressures and enhance the sentiments of producers for production and create employment opportunities for the growing workforce in the country’.

The CNX Nifty traded in a range of 17,160.70 and 16,782.40 and there were 15 stocks advancing against 35 stocks declining on the index.  

The top gainers on Nifty were Kotak Mahindra Bank up by 2.38%, HCL Technologies up by 2.16%, HDFC Life Insurance up by 1.74%, Titan Company up by 1.65% and TCS up by 1.64%. On the flip side, BPCL down by 2.56%, Sun Pharma down by 2.33%, Adani Ports down by 2.12%, UPL down  by 2.07% and  NTPC down by 1.86%.

European markets were trading higher; UK’s FTSE 100 increased 56.04 points or 0.8% to 7,100.07, France’s CAC increased 49.43 points or 0.73% to 6,789.16 and Germany’s DAX increased 62.04 points or 0.41% to 15,319.08.

Asian markets settled mostly lower on Monday tracking negative cues from Wall Street last week on fears about the global economic outlook following detection of a new and possibly vaccine-resistant Covid-19 variant 'Omicron' in more countries and governments are imposing travel controls. Chinese shares ended almost flat on omicron fears, while Chinese Evergrande Group's shares declined after its chairman Hui Ka Yan divested some of his stake in the cash-strapped property developer company to raise about $344 million. Japanese shares declined after Japan’s Prime Minister Fumio Kishida announced the country will bar entry by foreigners starting Tuesday.

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