IGI Logo

Extending rally for third straight session, Indian equity benchmarks ended the Thursday’s trade above their crucial 57,300 (Sensex) and 17,050 (Nifty) levels, as investors cheered to studies about omicron reduced risk of hospitalization and severe disease with omicron compared to delta. Traders took some support with report that the I-T department said income tax refunds of over Rs 1.44 lakh crore have been issued to 1.38 crore taxpayers so far this fiscal. This includes 99.75 lakh refunds of Assessment Year (AY) 2021-22 (fiscal ended March 31, 2021) amounting to Rs 20,451.95 crore. Market participants also took some solace with MPC minutes released by the central bank showing that RBI Governor Shaktikanta Das pitched for continued policy support to nurture revival in sectors especially those which are exposed to the evolving headwinds in the wake of spread of Omicron variant of Covid.

Markets extended gains as additional support came after rating agency ICRA said that profitability of sugar, fertiliser and dairy sectors will remain stable in FY22, with only three months left to close the financial year 21-22. Meanwhile, Commerce and Industry Minister Piyush Goyal has pitched for simplicity while formulating measures to improve ease of living, doing business and reduce the compliance burden. Traders also got some support after Commerce and Industry Minister Piyush Goyal has pitched for simplicity with an aim to formulate measures to improve ease of living, doing business and reduce the compliance burden. He also called for the creation of a single identification number for businesses and individuals by merging several identification numbers that exist presently, such as Aadhaar, PAN and TAN, so that delivery of services becomes smoother and faster. Meager profit booking witnessed in later part of the trade but, market participants went home with a decent gains shrugging off private report that Indian Consumer Price Index could rise as much as 150 basis points putting pressure on the central bank, if the GST council chooses to raise rates for many goods in line with the recommendations of the finance commission.

Firm opening in European markets too aided sentiments with all the European counters trading in green as the latest coronavirus studies fueled optimism that economic growth can withstand omicron risks. Asian markets ended higher on Thursday following Wall Street’s lead as concerns over inflation and Covid eased with US data showing optimism about the economy despite the spread of the Omicron variant.

Back home, around 50 Indian companies are taking part in a three-day business exhibition in Nepal, aimed to promote Brand India and enhance bilateral trade and investment by creating awareness about trade opportunities available on both sides. On the sectoral front, IT industry stocks remained in focus with a private report stating that the US government has withdrawn the Donald Trump era proposal to change the process of granting H-1B visa from the current lottery system to a wage-based system, a move that could cheer the Indian IT companies.

Finally, the BSE Sensex gained 384.72 points or 0.68% to 57,315.28 and the CNX Nifty was up by 117.15 points or 0.69% to 17,072.60.       

The BSE Sensex touched high and low of 57,490.52 and 57,146.28, respectively and there were 20 stocks advancing against 10 stocks declining on the index.  

The broader indices ended in green; the BSE Mid cap index surged 1.01%, while Small cap index up by 0.73%.

The top gaining sectoral indices on the BSE were Realty up by 2.21%, PSU up by 1.64%, Oil & Gas up by 1.51%, Power up by 1.45% and Utilities was up by 1.40%, while Telecom down by 0.82% and Metal down by 0.27% were the only losing indices on BSE.

The top gainers on the Sensex were Power Grid Corporation up by 3.40%, ITC up by 2.48%, Bajaj Finance up by 2.12%, Infosys up by 1.77% and NTPC up by 1.67%. On the flip side, Bharti Airtel down by 0.93%, Sun Pharma down by 0.80%, Maruti Suzuki down by 0.57%, Ultratech Cement down by 0.56% and Asian Paints down by 0.27% were the top losers.

Meanwhile, with an aim to formulate measures to improve ease of living, doing business and reduce the compliance burden, Commerce and Industry Minister Piyush Goyal has pitched for simplicity. He also called for the creation of a single identification number for businesses and individuals by merging several identification numbers that exist presently, such as Aadhaar, PAN and TAN, so that delivery of services becomes smoother and faster.

Goyal said government departments can take cues from the private sector which often makes things simpler for users. Citing an example, he said it is because of this simplicity that many people prefer to book their tickets on online platforms like MakeMyTrip rather than on IRCTC. He said ‘Simplicity is extremely important...Young boys and girls come in and make a system which is (so) easy to navigate that our whole complex mechanism becomes totally redundant...I am only trying to explain that simplicity is going to be very important going forward’.

He also called for timely delivery of services, simple monitoring mechanism, practical feedback from stakeholders and easy processes to further improve ease of living. He pointed out ‘With all due respect, very fancy presentations that these big consulting companies come and give are never going to solve the problems of this country or the big, big reports that come from international organisations. We Indians can devise mechanisms which suit the Indian context’.

The CNX Nifty traded in a range of 17,015.55 and 17,118.65 and there was 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Power Grid Corporation up by 3.37%, Indian Oil Corporation up by 2.84%, ONGC up by 2.70%, ITC up by 2.50% and Cipla up by 2.25%. On the flip side, Divi's Lab down by 1.86%, JSW Steel down by 1.63%, Bharti Airtel down by 0.88%, Sun Pharma down by 0.63% and Ultratech Cement down by 0.50% were the top losers.

European markets were trading in green, France’s CAC increased 20.20 points or 0.28% to 7,361.86, Germany’s DAX gained 78.14 points or 0.50% to 15,671.61 and UK’s FTSE 100 was up by 22.88 points or 0.32% to 7,074.55.

Asian markets settled higher on Thursday amid thin volumes ahead of Christmas break. Wall Street’s overnight gains also supported Asian market sentiments as Omicron fears subsided and the latest data of revised third-quarter economic growth painted a positive picture of the world's largest economy. While, the US White House also said it was resuming talks on a major social spending bill with a senator Joe Manchin, who is crucial to passing the legislation. Chinese shares gained as Chinese authorities have adopted strict pandemic control measures under their policy of seeking to drive new transmissions to zero. Ahead of the country hosting Winter Olympics in Beijing, China has ordered a lockdown in the northern city of Xi’an, a city of 13 million people in central China. Moreover, Japanese shares advanced with positive data from a South African study which suggested that there are reduced risks of hospitalisation and severe disease in people infected with the Omicron corona-virus variant versus the Delta one.

Above views are of the author and not of the website kindly read disclaimer