Markets pare most of the early gains to trade marginally in green

Indian equity Markets have pared most of their early gains and are trading marginally in green in early noon session as sentiment on the street weakened after Indian manufacturing growth slowed to seven-month low in September. The investors also remained concerned about the report that the monsoon season ended on Wednesday with a 14% deficit, making it the weakest monsoon since 2009. In terms of average countrywide rainfall during the season (June-September), this year was the third lowest since 1979, the other acutely deficient year being 2002. However, rupee appreciation provided some support to markets. The rupee appreciated by 10 paise to 65.58 against the dollar in early trade on sustained selling of the American currency by exporters and banks amid increased foreign fund inflows. Market breadth is positive on the BSE with 1,258 advances and 963 declines.

On the global front, Asian markets were trading in green; drawing strength from overnight gains in global equities markets following their weakest quarter in four years. Back home, in scrip specific development, share of Suven Life Sciences was trading up by 4.96% after the company secured one product patent from New Zealand, one product patent from Singapore and one product patent from USA corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with Neurodegenerative diseases and these Patents are valid through 2032.  At present, Sensex and Nifty were holding above the crucial 26,200 and 7,950 levels respectively.  Apart from blue chips, broader indices too equally participated in the rally with both mid cap and small cap indices trading up by 0.21% and 0.33% respectively.

The BSE Sensex is currently trading at 26213.02, up by 58.19 points or 0.22% after trading in a range of 26171.20 and 26431.80. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.21%, while Small cap index up by 0.33%.

The top gaining sectoral indices on the BSE were Power up by 0.46%, Consumer Durables up by 0.34%, TECK up by 0.33%, Capital Goods up by 0.24% and IT up by 0.11%, while Realty down by 1.00%, Auto down by 0.67%, Bankex down by 0.16%, Oil & Gas down by 0.14%, Metal down by 0.04% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.49%, Lupin up by 2.25%, Wipro up by 2.03%, TCS up by 1.97% and Infosys up by 1.11%. On the flip side, Tata Motors down by 2.04%, GAIL India down by 2.02%, Maruti Suzuki down by 1.97%, BHEL down by 1.73% and HDFC down by 0.95% were the top losers.

Meanwhile, Reserve Bank of India (RBI) governor Raghuram Rajan, acknowledging Prime Minister Narendra Modi’s initiative to market India as an investment destination has described him as being “ahead of us” and said that his visits abroad need to be backed up with “action on the ground” to reinforce the “good impression that is created”.  He said that “I think the world view of India in the aftermath of Modi’s foreign visits is changing positively.

Rajan said that we have to come up to speed in a number of dimensions. He added that it is known abroad that there are some issues that they have to deal with, but it should not be worse than their expectations. For example, if the idea of India as a strong economy is sold outside and they come in, and they don't find the ease of doing business, the permissions, etc people aren't (happy).”

The RBI chief also praised the government for effective food management, which he said helped keep food inflation in check despite two consecutive years of drought. Invoking PM Modi's advice to India Inc, Dr Rajan said investors must take a plunge with a 'hope and a prayer' and not wait for government actions. Rajan said he will be “accommodative” if data permits, signaling the possibility of further easing in interest rates.

The governor further said the relationship between the RBI and the government has been strong, but added that he did not always agree with the finance minister's point of view, adding that in a sense we have to be a gatekeeper and sometimes say no!

The CNX Nifty is currently trading at 7959.55, up by 10.65 points or 0.13% after trading in a range of 7935.00 and 8008.25. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 2.81%, Sun Pharma up by 2.66% and Lupin up by 2.23%, TCS up by 2.16% and Ambuja Cement up by 2.09%. On the flip side, HCL down by 10.24%, BHEL down by 1.85%, Maruti Suzuki down by 1.85%, Tata Motors down by 1.77% and GAIL India down by 1.75% were the top losers.

Asian markets were trading in green; FTSE Bursa Malaysia KLCI increased 5.6 points or 0.35% to 1,626.64, Shanghai Composite increased 14.64 points or 0.48% to 3,052.78, KOSPI Index increased 19.91 points or 1.01% to 1,982.72, Straits Times increased 26.71 points or 0.96% to 2,817.60, Jakarta Composite increased 35.73 points or 0.85% to 4,259.64, Taiwan Weighted increased 114.7 points or 1.4% to 8,295.94, Hang Seng increased 289.7 points or 1.41% to 20,846.30 and Nikkei 225 increased 400.03 points or 2.3% to 17,788.18.