Sensex, Nifty continue to trade near record highs

Holding their gaining momentum, key Indian benchmarks continued trading near record highs in late afternoon session, backed majorly by realty and telecom stocks. Investors were still getting encouragement with the reports that eight core sectors grew to a six-month high of 5.2 per cent in September, helped by a robust performance in coal, natural gas and refinery segments. World Bank’s report stating India jumped 30 spots to number 100 in the latest 'Ease of Doing Business' for 2018, was helping the indices to maintain their rally. Apart from the World Bank report, the markets were also lifted by firm opening in European markets. Further support also came with Department of Industrial Policy and Promotion (DIPP) secretary Ramesh Abhishek’s statement that the government is working with the World Bank to recognise over 200 reforms that will help propel India into the top-50 bracket in ease of doing business. Furthermore, in line with the larger peers, the broader markets too performed well in the late noon deals. Meanwhile, the government gave ex-post facto clearance to implementation of the Special Banking Arrangement (SBA) of Rs 10,000 crore for payment of outstanding claims towards fertiliser subsidy in 2016-17.

On the global front, European markets were trading in green, despite a terrorist attack in New York, as investors focused on earnings reports. Asian markets too ended mostly in green. Back home, in scrip specific development, Premier Explosives jumped higher after the company bagged an order worth Rs 144.92 crore from Coal India, for supply of bulk explosives. 

The BSE Sensex is currently trading at 33601.93, up by 388.80 points or 1.17% after trading in a range of 33340.62 and 33651.52. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.31%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Telecom up by 4.22%, Realty up by 3.39%, Bankex up by 1.98%, FMCG up by 1.47% and Metal up by 1.09%, while Utilities down by 0.40%, IT down by 0.36%, Power down by 0.30%, Consumer Durables down by 0.27% and Healthcare down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 7.46%, ICICI Bank up by 4.78%, SBI up by 3.81%, HDFC up by 2.50% and Axis Bank up by 2.34%. On the flip side, Dr. Reddy’s Lab down by 2.39%, Power Grid Corporation down by 1.72%, TCS down by 1.31%, Sun Pharma down by 0.93% and Asian Paints down by 0.35% were the top losers.

Meanwhile, amid subdued demand conditions due to negative impacts of Goods and Services tax (GST), India’s manufacturing sector growth lost its momentum in the month of October. The seasonally adjusted Nikkei India Manufacturing Purchasing Manger’s Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 50.3 in October from 51.2 in September, indicating stagnation in the health of the manufacturing sector. However, the reading signaled an expansion for the third consecutive month, remaining above the no-change mark of 50.0.

As per the survey report, fractional rise witnessed in output, while new export orders for Indian goods reduced in October at fastest rate since September 2013. The report further added that employment increased for the third consecutive month in October due to greater outstanding business but the increment was modest and broadly unchanged from September’s recent high.

On the inflation front, input costs remained higher by rising at the fastest pace since May, while output prices rose in October as the companies attempted to pass on higher cost burdens to clients and to protect profit margins. The report further noted that purchasing activity fell marginally for the first time in three months and the reduction also witnessed in pre-production stocks.

The CNX Nifty is currently trading at 10430.75, up by 95.45 points or 0.92% after trading in a range of 10383.05 and 10451.65. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 7.54%, ICICI Bank up by 4.80%, SBI up by 3.76%, HDFC up by 2.57% and Axis Bank up by 2.55%. On the flip side, Eicher Motors down by 3.86%, Dr. Reddy’s Lab down by 2.39%, UPL down by 2.36%, HCL Tech. down by 1.99% and TCS down by 1.68% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 2.57 points or 0.08% to 3,395.91, Taiwan Weighted increased 12.56 points or 0.12% to 10,806.36, Jakarta Composite increased 26.63 points or 0.44% to 6,032.41, KOSPI Index increased 33.04 points or 1.31% to 2,556.47, Hang Seng increased 348.52 points or 1.23% to 28,594.06 and Nikkei 225 increased 408.47 points or 1.86% to 22,420.08. On the flip side, FTSE Bursa Malaysia KLCI decreased 4.49 points or 0.26% to 1,743.43.

All European markets were trading in green; France’s CAC increased 20.37 points or 0.37% to 5,523.66, UK’s FTSE 100 increased 25.98 points or 0.35% to 7,519.06 and Germany’s DAX increased 132.37 points or 1% to 13,361.94.