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Local equity markets were trading firmly in green with gains of over one and half a percent each, which lifted both Sensex and Nifty above psychologically crucial 56,700 and 16,900 levels. Meanwhile, broader indices also participating into the rally were trading higher with gains of over 1.50% each. Sustained buying activities by both funds and retail investors mainly buoyed the sentiment. Sentiments were also buttressed with Joint Secretary in the Department of Commerce Amitabh Kumar’s statement that Indian exports showed a turnaround after December last year and are still going strong, while global trade took a hit during the COVID-19 pandemic. Further, support also came in as the partially convertible rupee was strengthened by 33 paise to 75.56 against the US dollar in early trade at the Interbank Foreign Exchange amid sustained overseas capital inflows. Although, bit of profit-booking has dragged the benchmarks from day’s highs, as India has recorded 200 cases of the Omicron coronavirus variant across 12 states, mostly in the western state of Maharashtra and the nation's capital New Delhi.

On the global front; all Asia markets were trading higher as Chinese markets cheered Beijing's move to help troubled property firms, although surging cases of the Omicron coronavirus variant remain a worry for investors. Back home, Snapdeal filed for an initial public offering (IPO). Snapdeal's IPO consists of a fresh issue of shares worth 12.5 billion rupees ($165.09 million) and an offer for sale of 30.8 million shares, according to its draft prospectus.

The BSE Sensex is currently trading at 56759.94, up by 937.93 points or 1.68% after trading in a range of 56197.08 and 56880.22. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 1.73%, while Small cap index was up by 1.85%.

The top gaining sectoral indices on the BSE were Metal up by 3.66%, Basic Materials up by 2.84%, Consumer Durables up by 2.42%, Realty up by 2.39% and IT was up by 2.15%, while there were no losing sectoral indices on the BSE.

The top gainers on the Sensex were Tata Steel up by 4.06%, HCL Tech up by 3.56%, Wipro up by 3.14%, Tech Mahindra up by 2.86% and Ultratech Cement was up by 2.81%. On the flip side, Power Grid down by 2.14% and Axis Bank was down by 0.17% were the only losers.

Meanwhile, amid a poor demand for entry-level 2Ws (two-wheelers) and the semiconductor shortage for PVs (passenger vehicles), credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has showed the 28.4% sequential decline in the domestic auto sales volumes (excluding CVs) in November 2021. The overall production and sales volumes decreased 26% yoy and 32% yoy, respectively, in November 2021.

According to the report, domestic PVs sales sequentially dropped 4.7% mom (month on month) in November 2021 and fell 18.6% yoy (year on year), on the account of the semiconductor shortage. This was despite a strong demand in the market, as reflected by low dealership inventory levels of 10-15 days. Domestic PV demand continued its shift towards utility vehicles (UVs), as the segment’s sales grew 1.5% yoy owing to original equipment manufacturers’ (OEMs) prioritisation of UV production over other PV segments. Export sales volume grew 12% mom and 16% yoy.

On two/three-wheelers front, the rating agency said that domestic 2Ws sales declined 32% mom and 34% yoy in November 2021 owing to the continued poor demand in entry-level segment especially in the rural market, increased cost of ownership on account of price hikes by OEMs and increased fuel prices. 2W export sales declined 4.7% mom while growing 9% yoy, while domestic 3Ws sales continued to be low owing to a shift in consumer preference towards personal mobility and financing issues. The sales dropped 29.3% mom and 7% yoy in November 2021.

The CNX Nifty is currently trading at 16904.45, up by 290.25 points or 1.75% after trading in a range of 16722.95 and 16928.90. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 4.22%, Hindalco up by 3.54%, HCL Tech up by 3.54%, JSW Steel up by 3.42% and Wipro was up by 3.33%. On the flip side, Power Grid down by 1.72%, Cipla down by 0.40%, Divi's Lab down by 0.07% and Axis Bank was down by 0.07% were the few losers.

All Asian markets were trading higher; Shanghai Composite gained 28.59 points or 0.8% to 3,622.19, Nikkei 225 surged 579.78 points or 2.08% to 28,517.59, Straits Times advanced 10.91 points or 0.36% to 3,083.88, Jakarta Composite soared 0.59 points or 0.01% to 6,547.70, Hang Seng increased 188.27 points or 0.83% to 22,933.13, Taiwan Weighted strengthened 120.16 points or 0.68% to 17,789.27 and KOSPI was up by 12.03 points or 0.41% to 2,975.03.

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