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Gaining rally persisted over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading near their intraday high points, on the back of positive cues from other Asian markets. Domestic sentiments remained optimistic, as the Union Government released two instalments of tax devolution to State Governments amounting to Rs 1,16,665 crore, as against normal monthly devolution of Rs 58,333  crore, in line with the commitment of Government of India to strengthen the hands of States to accelerate their capital and developmental expenditure.

The street overlooked reports stating that Moody's slashed India's GDP growth projections for 2022 to 7 per cent from 7.7 per cent earlier as the global slowdown and rising domestic interest rates will dampen economic momentum. This is the second time that Moody's Investors Service has cut India's growth estimates. In September, it had cut projections for the current year to 7.7 per cent from 8.8 per cent estimated in May.

On the global front, Asian markets were trading higher, after producer prices in Japan were up 0.6 percent on month in October. That matched expectations and was down from the upwardly revised 1.0 percent increase in September (originally 0.7 percent). On a yearly basis, producer prices spiked 9.1 percent - exceeding expectations and slowing from the upwardly revised 10.2 percent jump in the previous month (originally 9.7 percent).

The BSE Sensex is currently trading at 61701.55, up by 1087.85 points or 1.79% after trading in a range of 61311.02 and 61730.00. There were 21 stocks advancing against 8 stocks declining, while one stock remained unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.39%, while Small cap index was up by 0.55%.

The top gaining sectoral indices on the BSE were IT up by 3.24%, TECK up by 2.85%, Metal up by 2.26%, Realty up by 1.99% and Bankex up by 1.33%, while Auto down by 0.16% and FMCG down by 0.12% were the only losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 6.05%, HDFC up by 5.70%, Infosys up by 3.84%, HCL Technologies up by 3.48% and TCS up by 3.38%. On the flip side, Kotak Mahindra Bank down by 0.54%, NTPC down by 0.52%, Dr. Reddy's Laboratories down by 0.43%, Hindustan Unilever down by 0.42% and SBI down by 0.31% were the top losers.

Meanwhile, Chairman of Tea Board Saurav Pahari said that the Tea Board has sought an assistance of Rs 1000 crore for the industry for a period of five years starting 2022-23. He also said that in the budget submitted to the commerce ministry, the focus has been on handholding the small tea growers (STGs) which contribute to 52 per cent of the total production in the country.

Pahari said that the budget is primarily intended to handhold the STGs which contribute to 52 per cent of the country's production volumes. He said that the Board had also sought subsidy for orthodox tea production which has a good export market. It is good to note that the tea industry on the whole now acknowledges the contribution of the STGs. It should be a collaborative effort between the big tea planters and the STGs for the development of the industry.

He further said tea exports had plummeted but now are picking up. However, domestic production has not picked up as expected. India needs to build the brand image of tea. He also said that technology has to be adopted to optimise the use of labour in the industry, while production costs have to be kept within control to ensure profitability.

The CNX Nifty is currently trading at 18332.65, up by 304.45 points or 1.69% after trading in a range of 18259.35 and 18335.70. There were 38 stocks advancing against 12 stocks declining on the index.

The top gainers on Nifty were HDFC Bank up by 6.26%, HDFC up by 5.79%, HDFC Life Insurance up by 3.87%, Infosys up by 3.86% and HCL Tech. up by 3.56%. On the flip side, Eicher Motors down by 4.50%, Hero MotoCorp down by 0.91%, Britannia Industries down by 0.86%, NTPC down by 0.55% and Dr. Reddy's Lab down by 0.54% were the top losers.

All Asian markets were trading higher; KOSPI rose 80.93 points or 3.37% to 2,483.16, Straits Times advanced 50.46 points or 1.59% to 3,223.64, Shanghai Composite gained 50.63 points or 1.67% to 3,086.76, Jakarta Composite soared 114.36 points or 1.64% to 7,081.20, Taiwan Weighted strengthened 503.80 points or 3.73% to 14,007.56, Nikkei 225 surged 817.47 points or 2.98% to 28,263.57 and Hang Seng increased 1120.83 points or 6.97% to 17,201.87.

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