Benchmarks trade in fine fettle in early deals

Indian equity benchmarks have made a positive start and are trading in fine fettle in early deals on Wednesday, as traders opted to buy beaten down but fundamentally strong stocks after two days of continuous drubbing. Sentiments remained optimistic on good domestic economic data. Retail inflation on the back of easing food and fuel prices eased to 14-month low of 4.20 percent in October this year, strengthening the case for RBI rate cut next month. On the same time, exports continued to grow for the second month in a row, expanding by 9.59 percent to $ 23.51 billion in October on healthy growth in shipments of jewellery and engineering products. Though, imports too increased by 8.11 percent to $ 33.67 billion, leaving a trade deficit of $ 10.16 billion in the month under review.

Positive global cues too supported sentiments, with most of the Asian markets trading in green at this point of time led by the Japanese market, which is up by over a percent in early deals after the dollar fell from a five-month high versus the yen as investors questioned whether financial markets overreacted to Donald Trump’s shock U.S. election victory. The US markets ended higher in last session following report from Commerce Department, showing that retail sales increased by more than expected in the month of October.

The BSE Sensex is currently trading at 26450.09, up by 145.46 points or 0.55% after trading in a range of 26326.89 and 26621.40. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index slipped 0.26%, while Small cap index was down by 0.65%.

The top gaining sectoral indices on the BSE were IT up by 1.41%, TECK up by 1.34%, Telecom up by 0.46%, Realty up by 0.33% and Auto was up by 0.29%, while Consumer Durables down by 2.85%, Basic Materials down by 1.62%, Metal down by 1.47%, Healthcare down by 1.04% and Capital Goods down by 0.62% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.05%, Asian Paints up by 2.41%, Maruti Suzuki up by 1.95%, ONGC up by 1.74% and Infosys up by 1.55%. On the flip side, Tata Steel down by 2.74%, Lupin down by 2.31%, Adani Ports &Special down by 1.82%, Axis Bank down by 1.75% and Tata Motors down by 1.37% were the top losers.

Meanwhile, after the government’s decision to stop toll collections on National Highways till the midnight of November 18, National Highways Authority of India (NHAI) has proposed to compensate up to 75% of the losses due to the move resulting from demonetization. NHAI Chairman Raghav Chandra said that on an average daily toll collection is around Rs 60-75 crore across the country so the loss they are facing is very huge. Therefore, they have proposed that they will make interim relief to these concessionaires by paying nearly 75% of the losses to ease their cash flow.

Chandra said that NHAI has put forward the proposal to the government for its approval. He added that there are around 100 tolls which are publicly funded and around 265 private tolls. But these 100 publicly funded tolls have also been given on contract to private operators. So, to ensure that these also don't face cash flow problem because of the decision, they have decided to provide the relief even to these tolls. He also said that this move is necessary for the concessionaires so that they don't face huge licenses and they will be able to support the government's demonetization plans.

After the Prime Minister Narendra Modi’s decision to withdraw denominations of Rs 500 and Rs 1000 from circulation, Union Minister for Roads and Highways Nitin Gadkari had asked all the toll operators to stop collection at all toll plazas to enable smooth movement of traffic. Earlier, the deadline for toll exemption was November 14 which has been extended to November 18. This deadline extension is aimed at offering respite to the cash-strapped citizens, who are queuing up outside ATMs and banks to withdraw or exchange money.

The CNX Nifty is currently trading at 8138.15, up by 29.70 points or 0.37% after trading in a range of 8100.50 and 8210.05. There were 26 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were TCS up by 3.14%, Zee Entertainment up by 2.87%, Asian Paints up by 2.54%, Maruti Suzuki up by 1.99% and Infosys up by 1.87%. On the flip side, Aurobindo Pharma down by 3.03%, Tata Motors - DVR down by 2.93%, Ambuja Cement down by 2.54%, Tata Steel down by 2.48% and Kotak Mahindra Bank down by 2.46% were the top losers.

Asian markets were trading mostly in green; KOSPI Index gained 14.57 points or 0.74% to 1,982.10, Taiwan Weighted increased 70.49 points or 0.79% to 9,001.52, Jakarta Composite surged 93.17 points or 1.83% to 5,171.67, Hang Seng rose 137.1 points or 0.61% to 22,461.01 and Nikkei 225 was up by 206.25 points or 1.17% to 17,874.40.

On the flip side, Shanghai Composite decreased 4.37 points or 0.14% to 3,202.62 and FTSE Bursa Malaysia KLCI was down by 1.03 points or 0.06% to 1,629.53.