Benchmarks trade slightly in red in morning deals

Trimming their initial gains, Indian equity benchmarks are trading slightly in the red in early deals as investors opted to book some of their profit. Sentiments also remained dampened after the eight core sector’s growth plunged to eight-month low of 1.9 per cent in September much lower than 5.8 per cent in August this year, as output in crude oil, natural gas and fertiliser declined. However, down-side remained capped as some support came in with Finance Minister Arun Jaitley’s statement that economic growth in the current fiscal will be in the 5.5-5.9 per cent range and declining prices of crude oil and food will help lower inflation. FM has outlined major priorities of the government as reviving and sustaining higher GDP growth, increasing savings, fiscal consolidation, keeping the Current Account Deficit at moderate level and reviving investment cycle, among others.

On the global front, the US markets ended higher last session supported by good consumer sentiment data. The Asian markets were trading mostly in the green at this point of time taking cues from the US markets and data that China’s manufacturing rose last month led by global recovery, although the country is heading for the slowest full-year expansion.

Back home, on the sectoral front, software, technology and realty witnessed the maximum gain in trade, while auto, consumer durables and oil and gas remained the top losers on the BSE sectoral space. The broader indices, however, outperforming benchmarks, while the market breadth on the BSE was positive; there were 1258 shares on the gaining side against 737 shares on the losing side while 66 shares remain unchanged.

The BSE Sensex opened at 27943.04; around 78 points higher as compared to its previous closing of 27865.83, and has touched a high and a low of 27969.82 and 27789.40 respectively. The BSE Sensex is currently trading at 27852.67, down by 13.16 points or 0.05%. There were 14 stocks advancing against 16 stocks declining on the index.

The overall market breadth remained in the favour of advances with 61.04% stocks advancing against 35.76% declines. The broader indices were trading in green; the BSE Mid cap index was up by 0.55%, while Small cap index up by 0.60%.

The gaining sectoral indices on the BSE were IT up by 0.93%, TECK up by 0.93%, Realty up by 0.88%, Metal up by 0.85% and Infrastructure up by 0.31% while, Auto down by 1.13%, Consumer Durables down by 1.07%, Oil & Gas down by 0.30% and Bankex down by 0.15% were the few losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 2.25%, Dr. Reddys Lab up by 2.13%, Hindalco up by 1.23%, Infosys up by 1.07% and TCS up by 0.93%. On the flip side, GAIL India down by 3.16%, Mahindra & Mahindra down by 2.46%, Hero MotoCorp down by 2.01%, Bajaj Auto down by 1.92% and Maruti Suzuki down by 1.29% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has raised the limit for urban co-operative banks (UCBs) to sanction loan against gold collateral to Rs 2 lakh from Rs 1 lakh at present under the bullet repayment scheme.

As per the bullet repayment scheme, the UCBs are allowed to sanction loan only on conditions that the period of loan shall not exceed 1 year from the date of sanction. Interest will become due for payment along with principal only at the end of 12 months from the date of sanction. Further, banks should maintain a Loan to Value (LTV) ratio of 75 per cent on the outstanding amount on an ongoing basis, failing which the loan will be treated as a Non Performing Asset.

The RBI’s notification further stated that UCBs should take necessary and usual safeguards and formulate suitable policy for lending against gold jewellery with the approval of their boards of directors.

In another announcement, Reserve Bank also directed urban co-operative banks to strictly adhere to the requirement of using their full name along with their logo or abridged name as a brand promotion exercise. Central bank noted that UCBs efforts towards brand building do not compromise with the rule of proper disclosure to the public. Earlier, a Standing Advisory Committee in 2006 had allowed UCBs to use logo or shorter names.

The CNX Nifty opened at 8,348.15; around 26 points higher as compared to its previous closing of 8,322.20, and has touched a high and a low of 8,350.60 and 8,297.70 respectively.

The CNX Nifty is currently trading at 8315.40, down by 6.80 points or 0.08%. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 2.56%, Sesa Sterlite up by 2.07%, Dr. Reddys Lab up by 1.89%, Tech Mahindra up by 1.65% and Zee Entertainment up by 1.42%. On the flip side, GAIL India down by 3.05%, Mahindra & Mahindra down by 2.60%, Bajaj Auto down by 2.11%, Hero MotoCorp down by 2.10% and BHEL down by 1.60% were the top losers.

Asian markets were trading mostly in the green; Hang Seng surged by 296.02 points or 1.25% to 23,998.06, Straits Times rose 13.12 points or 0.40% to 3,287.37, Shanghai Composite increased by 14.82 points or 0.61% to 2,435.00 and Taiwan Weighted was up by 48.62 points or 0.54% to 9,023.38. On the flip side, KOSPI Index dropped 9.71 points or 0.49% to 1,954.72, Jakarta Composite contracted 9.06 points or 0.18% to 5,080.49 and FTSE Bursa Malaysia KLCI was down by 0.26 points or 0.01% to 1,854.89. The Japanese market remained shut for the trade today for Culture Day holiday.