Sensex, Nifty recover losses; Metal shines

Key Indian equity benchmarks recovered all of their losses in late afternoon session, following firm opening in European markets. Positive Gross Domestic Product (GDP) forecast along with gains led by metal and Healthcare stocks, helped the key indices to erase losses. The International Monetary Fund (IMF) in its latest World Economic Outlook (WEO) report has retained India’s economic growth forecast at 7.3% for the current year 2018. Some support also came with a report stating that India is all set to emerge as the 11th wealthiest country in the world as its personal financial wealth is projected to grow by 13% to $5 trillion by 2022 from the current $3 trillion. Adding some comfort, DIPP Secretary Ramesh Abhishek said that India is taking several steps, including hiring more manpower and increasing use of technology, to reduce time for granting patents and trademarks.

However, gains were limited, amid reports that India fared poorly, ranking 147 out of 157 countries, in terms of its commitment to reducing inequality. Upside also remained capped with credit rating agency CRISIL’s latest report that farmers’ income remain low in calendar year 2018, despite normal rainfall.  Some concerns also came with another report showing that India is one of the most vulnerable countries for extreme weather events. On the sectoral front, agri stocks remained in limelight, supported by Union Agriculture Minister Radha Mohan Singh’s statement that the Union government has launched a system to eliminate the role of middle men in procuring farming produce, to ensure better monetary benefits to peasants. In scrip specific development, Garware Technical Fibres gained on expanding its presence in Gujarat.

On the global front, European markets were trading in green, despite Eurozone investor confidence weakened in October largely due to uncertainties about the fiscal policy stance in Italy and the automobile industry in Germany. As per survey data from think tank Sentix, the investor sentiment index fell more-than-expected to 11.4 in October from 12.0 in September. Asian markets were trading mixed, on concerns about rising interest rates globally and mounting tensions over trade. Chinese Foreign Minister Wang Yi accused the US of constantly escalating the trade dispute with China and harming the communist country's rights and interests with its support for Taiwan, in a sign of sharply deteriorating relations between the two countries.

The BSE Sensex is currently trading at 34499.77, up by 25.39 points or 0.07% after trading in a range of 34285.06 and 34711.68. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.36%, while Small cap index was down by 0.61%.

The top gaining sectoral indices on the BSE were Metal up by 1.85%, Healthcare up by 1.34%, TECK up by 0.33%, IT up by 0.23% and Bankex up by 0.01%, while Consumer Durables down by 2.61%, Auto down by 2.41%, FMCG down by 1.74%, Consumer Disc down by 1.31% and Industrials down by 1.31% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 4.45%, Vedanta up by 3.36%, Coal India up by 2.93%, HDFC up by 2.93% and Yes Bank up by 2.51%. On the flip side, Tata Motors down by 14.62%, Tata Motors - DVR down by 12.69%, Asian Paints down by 3.87%, Hindustan Unilever down by 2.97% and Maruti Suzuki down by 2.37% were the top losers.

Meanwhile, expressing some worries, credit rating agency CRISIL in its latest report has said that farmers’ income remain low in calendar year 2018, despite normal rainfall. However, the rating agency noted that non-farm incomes are on an uptrend.

As per the report, three key kharif growers such as Gujarat, West Bengal and Bihar are under the impact of weak rains, while six others such as Rajasthan, Madhya Pradesh, Uttar Pradesh, Andhra Pradesh, Karnataka and Maharashtra, which saw overall normal rains, had pockets of severe deficiency and that too in the crucial months of July and August. This has impacted sowing.

CRISIL further highlighted that employment for low-skilled agricultural labourers and non-agricultural rural wages got boost on account of the government’s thrust on constructing rural infrastructure, coupled with waning impact of demonetization.  It also said that wage levels are modest, but there is a steady rise.

The CNX Nifty is currently trading at 10372.00, up by 23.95 points or 0.23% after trading in a range of 10279.35 and 10397.60. There were 28 stocks advancing against 21 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 5.29%, Dr. Reddy’s Lab up by 4.78%, Vedanta up by 4.14%, Zee Entertainment up by 3.60% and Coal India up by 3.14%. On the flip side, Tata Motors down by 13.66%, Titan down by 4.90%, Eicher Motors down by 3.95%, Asian Paints down by 3.59% and Grasim Industries down by 3.54% were the top losers.

Asian markets were trading were trading mixed; Nikkei 225 plunged 314.33 points or 1.34% to 23,469.39, Hang Seng decreased 29.66 points or 0.11% to 26,172.91 and Straits Times was down by 15.56 points or 0.49% to 3,165.89. On the flip side, Taiwan Weighted increased 10.90 points or 0.1% to 10,466.83, Shanghai Composite added 4.51 points or 0.17% to 2,721.02 and Jakarta Composite was down by 22.15 points or 0.38% to 5,783.22.

European markets were trading mostly in green; UK’s FTSE 100 increased 2.37 points or 0.03% to 7,235.70 and France’s CAC surged 5.11 points or 0.1% to 5,305.36. On the flip side, Germany’s DAX was down by 6.07 points or 0.05% to 11,941.09.