Benchmarks trade in fine fettle in noon deals

Indian equity benchmarks are trading in fine fettle in noon deals as investors continued to buy beaten down but fundamentally strong stocks after six days of continuous drubbing. Sentiments remained up-beat since morning after growth in eight core sectors rose to 4-month high of 3.2 percent in September because of sharp pick-up in fertiliser production and electricity generation. Buying in banking counter too supported the sentiments after Global rating agency Moody’s on Monday said it expected a gradual improvement in the working environment as it upgraded its outlook for India’s banking system from negative to stable. Metal shares are trading higher on rebound in the commodity prices.

On the global front, Asian markets were trading mostly in green at this point of time as inflation in South Korea unexpectedly increased at the fastest pace in almost a year, helping the government's assessment that economy is in turnaround. Back home, on the sectoral front, software, public sector undertaking and technology witnessed the maximum gain in trade, while capital goods and consumer durables remained the only losers on the BSE sectoral space. The broader indices too were going neck-to-neck with benchmarks, while the market breadth on the BSE was positive; there were 1,467 shares on the gaining side against 960 shares on the losing side while 85 shares remain unchanged.

The BSE Sensex is currently trading at 26631.44, up by 72.29 points or 0.27% after trading in a range of 26604.19 and 26732.24. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.32%, while Small cap index up by 0.52%.

The gaining sectoral indices on the BSE were Power up by 0.92%, IT up by 0.76%, PSU up by 0.60%, TECK up by 0.52% and Metal up by 0.51%, while Capital Goods down by 0.25% and Consumer Durables down by 0.09% were the only losing indices on BSE.

The top gainers on the Sensex were NTPC up by 3.16%, Hindalco up by 2.47%, Mahindra & Mahindra up by 1.41%, Vedanta up by 1.19% and Dr. Reddys Lab up by 1.00%. On the flip side, GAIL India down by 1.37%, ITC down by 1.10%, Bharti Airtel down by 0.94%, Lupin down by 0.88% and Larsen & Toubro down by 0.61% were the top losers.

Meanwhile, in line with global trends, Oil Marketing Companies (OMCs) have hiked non-subsidized or market-priced domestic cooking gas (LPG) by Rs 27.5 per 14.2-kg bottle, which consumers buy after exhausting their quota of subsidised cooking fuel. The increase comes on back of four straight monthly reductions in rates of non-subsidized or market-priced LPG.

Following the hike, non-subsidised cooking gas (LPG) now costs Rs 545 per 14.2-kg cylinder in Delhi. In Kolkata, it will cost Rs 575 per cylinder, in Mumbai, Rs 555 and in Chennai, the price will be Rs 559.50 a cylinder. Non-subsidised LPG price was last cut on October 1 by Rs 42 to Rs 517.50 in Delhi. Prior to that, rates were cut by Rs 25.50 on September 1, Rs 23.50 on August 1 and by Rs 18 per cylinder to Rs 608.50 on July 1.

Meanwhile, the oil firms have marginally slashed the prices of the Jet fuel or aviation turbine fuel (ATF). In Delhi, it has been cut by Rs 142.56 per kilolitre, or 0.3 percent, to Rs 43,041.61 per kilolitre. The reduction comes on the back of 5.5 percent or Rs 2,245.92 per kilolitre increase in ATF price on October 1. This price cut will bring marginal relief to the cash-strapped carriers. Jet fuel prices constitute over 40% of an airline’s operating cost. Rates vary from airport to airport depending on the local sales tax or value-added tax (VAT).

State-owned fuel retailers, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate.

The CNX Nifty is currently trading at 8066.40, up by 15.60 points or 0.19% after trading in a range of 8056.30 and 8100.35. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were NTPC up by 3.39%, Hindalco up by 2.41%, ACC up by 1.62%, Power Grid up by 1.55% and Mahindra & Mahindra up by 1.50%. On the flip side, Asian Paints down by 1.93%, GAIL India down by 1.63%, Kotak Mahindra Bank down by 1.20%, ITC down by 1.10% and Lupin down by 0.87% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 9.32 points or 0.56% to 1,673.39, KOSPI Index rose 13.16 points or 0.65% to 2,048.40, Jakarta Composite surged 72.57 points or 1.63% to 4,537.53, Taiwan Weighted added 98.42 points or 1.14% to 8,713.19 and Hang Seng was up by 221.08 points or 0.99% to 22,591.12. On the flip side, Shanghai Composite was down by 15.23 points or 0.46% to 3,309.85.