The key equity indices traded with modest gains in early afternoon trade, supported by positive global cues. Notably, the closure of Hindenburg Research and favorable developments in the Israel-Hamas ceasefire contributed to the market’s upward movement. The Nifty traded above the 23,250 mark. Financial services shares advanced after declining in the past trading session. Trading was volatile due to the weekly F&O series expiry today.

At 12:30 IST, the barometer index, the S&P BSE Sensex, rose 259.97 points or 0.34% to 76,983.01. The Nifty 50 index added 84.25 points or 0.36% to 23,297.45.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index added 0.87% and the S&P BSE Small-Cap index rallied 1.27%.

The market breadth was strong. On the BSE, 2,722 shares rose and 1,105 shares fell. A total of 132 shares were unchanged.

Economy:

India’s trade deficit widened to $21.94 billion in December from $18.76 billion a year ago as merchandise exports contracted for the second month in a row, data released Wednesday showed. Exports contracted by about 1% year-on-year to $ 38.01 billion due to global uncertainties, while imports rose by about 5% to $ 59.95 billion. Gold imports in December amounted to $4.7 billion. However, the merchandise trade deficit narrowed in December compared with November. The government had revised November’s gold imports to $9.84 billion from $14.86 billion announced earlier. The correction had lowered the November trade deficit to $32.8 billion from a record $37.8 billion estimated earlier.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.09% to 15.27. The Nifty 30 January 2025 futures were trading at 23,370, at a premium of 72.55 points as compared with the spot at 23,297.45

The Nifty option chain for the 30 January 2025 expiry showed maximum Call OI of 53.7 lakh contracts at the 24,000 strike price. Maximum Put OI of 43.3 lakh contracts was seen at 23,000 strike price.

Buzzing Index:

The Nifty Financial Services index gained 1.07% to 22,922.80. The index shed 0.11% in the past trading sessions.

HDFC Life Insurance Company (up 8.9%), SBI Life Insurance Company (up 3.6%), Cholamandalam Investment & Finance Company (up 3.02%), Shriram Finance (up 2.83%), ICICI Prudential Life Insurance Company (up 2.49%), LIC Housing Finance (up 2.32%), SBI Cards & Payment Services (up 2.01%), Multi Commodity Exchange of India (up 1.85%), Power Finance Corporation (up 1.85%) and Axis Bank (up 1.31%) advanced.

Stocks in Spotlight:

Azad Engineering jumped 5.66% after the firm signed a long term supply agreement with Ge Vernova International LLC, USA with a contract value of $112 million, equivalent to Rs 960 crore.

Garuda Construction and Engineering jumped 5.66% after the company announced its largest-ever order win of Rs 1,087.34 crore from Gorakhpur Development Authority – a department of the Government of Uttar Pradesh.

Zen Technologies rallied 4.01% after the company announced that it has secured successful design registration for its 60 mm Mortar Training Simulator under the Designs Act, India.