Benchmarks continue firm trade at highest point of the day

Indian equity markets extended gains and are trading firm hovering near the highest point of the day in the late afternoon session on account of buying in front line blue chip counters. The sentiments got support after data showed narrowing of current account deficit (CAD) to 1.6 percent of the GDP in the September quarter, compared with 2.2 percent in the year-ago quarter. Traders were seen piling position in Metals, Oil & Gas and Power sector stocks.  In the scrip specific development, Drug maker Alkem Laboratories and diagnostic chain Dr Lal PathLabs continued their firm trade after debuting on bourses up by more than 30% from its issue price. Essar Oil was trading in green after its delisting got through as the markets regulator SEBI gave its go-ahead to the stock exchange BSE to accept nearly 2 crore shares tendered by the state-run LIC for the promoters’ buyout offer.

On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 7,850 and 25,800 levels respectively. The market breadth on BSE was positive in the ratio of 1598:938 while 216 scrips remained unchanged.

The BSE Sensex is currently trading at 25853.27, up by 262.62 points or 1.03% after trading in a range of 25689.70 and 25866.91. There were 28 stocks advancing against 2 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.62%.

The gaining sectoral indices on the BSE were Metal up by 1.96%, Oil & Gas up by 1.44%, Power up by 1.29%, Capital Goods up by 1.18%, Realty up by 1.04%.

The top gainers on the Sensex were GAIL India up by 4.79%, BHEL up by 3.64%, Sun Pharma up by 3.12%, Tata Steel up by 2.84% and Bharti Airtel up by 2.51%.

On the flip side, Mahindra & Mahindra down by 0.41% and Adani Ports & Special Economic Zone down by 0.19% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) has said that entities that received in-principle approval for setting up payments banks and small finance banks (SFBs) can join any payment system only after getting the final licence.

The central bank in its statement said that entities that have been granted in-principle approval by it for setting up payments banks and SFBs, can apply to the RBI for membership of any centralized / decentralized payment systems, including Bharat Bill Payment System, after receiving the licence for commencement of business under the Banking Regulation Act, 1949.

RBI Deputy Governor R Gandhi has said that the Reserve Bank is working on the next payment system vision document, which will cover what are the developmental initiatives the RBI should be encouraging the industry to do.

The central bank, in August and September, announced the names of 21 entities that were granted in-principle approval for setting up payments banks and SFBs. The ‘in-principle’ approval is valid for 18 months during which time the applicants have to comply with all requirements stipulated by the RBI before grant of final licence for commencement of banking business.

The CNX Nifty is currently trading at 7864.40, up by 78.30 points or 1.01% after trading in a range of 7826.10 and 7866.40. There were 45 stocks advancing against 5 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 4.96%, Hindalco up by 4.52%, BHEL up by 3.68%, Vedanta up by 3.37% and Sun Pharma up by 3.18%.

On the flip side, Asian Paints down by 0.17%, Adani Ports & Special Economic Zone down by 0.16%, Mahindra & Mahindra down by 0.16%, ACC down by 0.07% and BPCL down by 0.05% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 6.66 points or 0.33% to 1,999.22, FTSE Bursa Malaysia KLCI increased 17.63 points or 1.07% to 1,660.89, Taiwan Weighted increased 22.96 points or 0.28% to 8,315.70 and Hang Seng increased 210.57 points or 0.96% to 22,040.59.

On the other hand, Shanghai Composite decreased 15.68 points or 0.43% to 3,636.09 and Jakarta Composite decreased 7.71 points or 0.17% to 4,509.86.

Japan’s stock exchange was closed on account of ‘Emperor’s Birthday’ holiday.

The European markets were trading in green; UK’s FTSE 100 increased 84.7 points or 1.39% to 6,167.80, France’s CAC increased 65.93 points or 1.44% to 4,633.53 and Germany’s DAX increased 181.27 points or 1.73% to 10,670.02.