Indian equity benchmarks remained firm at higher levels in late afternoon session, mirroring positive opening of European markets. Optimism in broader markets coupled with heavy buying ahead of corporate earnings season, kept the markets in cheerful mood. Traders were taking encouragement with Commerce Minister Suresh Prabhu’s statement that the New Industrial Policy is in sync with the challenges and opportunities for India with the fourth industrial revolution technologies and will place the country firmly in the global supply and value chains. Sentiments remained positive with Federation of Indian Chambers of Commerce and Industry’s (FICCI) latest quarterly survey showing that the outlook for India’s manufacturing sector is positive for July-September quarter (Q2) even as the hiring outlook for the sector remains subdued. Besides, the survey report stated that exports to rise in the second quarter.
On the sectoral front, cement stocks were trading higher, aided by credit rating agency, India Ratings and Research’s (Ind-Ra) latest report showing that the overall demand conditions are likely to remain stable for Indian cement sector, amid a gradual economic growth forecast across cement end-markets. Further, stocks related to pharma sector were also trading in green, with a private report stating that the Indian pharmaceutical market (IPM) grew at 9.7% in the second quarter ended September, displaying pre-GST level growth rate. In scrip specific development, Som Distilleries & Breweries gained after its wholly owned subsidiary -- Woodpecker Distilleries & Breweries commenced production of IMFL from the Hassan facility in the state of Karnataka.
On the global front, European markets were trading in green, as France's consumer price inflation eased in September. The latest figures from the statistical office INSEE revealed that consumer price index rose 2.2% year-on-year following a 2.3% increase in August. Asian markets were also trading in green, after China's exports logged a double-digit growth in September. As per figures from customs administration, exports grew 14.5% year-on-year in September, faster than the 9.8% increase seen in August. Imports advanced an annual 14.3%, resulting in higher trade surplus of around $32 billion in September.
The BSE Sensex is currently trading at 34702.92, up by 701.77 points or 2.06% after trading in a range of 34279.78 and 34808.42. There were 30 stocks advancing against 1 stocks declining on the index.
The broader indices were trading in green; the BSE Mid cap index was up by 2.51%, while Small cap index was up by 2.57%.
The top gaining sectoral indices on the BSE were Auto up by 4.08%, Metal up by 3.55%, Realty up by 3.43%, Consumer Disc up by 3.26% and Basic Materials up by 3.13%, while IT down by 0.71% and TECK down by 0.51% were the only losing indices on BSE.
The top gainers on the Sensex were Maruti Suzuki up by 5.70%, Mahindra & Mahindra up by 5.45%, Bajaj Auto up by 4.77%, ITC up by 4.32% and Coal India up by 3.92%. On the flip side, TCS down by 2.42% was the sole loser.
Meanwhile, amid a gradual economic growth forecast across cement end-markets, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the overall demand conditions are likely to remain stable for Indian cement sector.
The rating agency maintained a stable outlook on the sector for the remaining period of current financial year. However, Ind-Ra pointed that rising input costs would impact the EBITDA growth of the companies (earnings before interest, tax, depreciation and amortization), further noting that cement prices have remained stagnant over the last few quarters, despite rising fuel prices.
Ind-Ra also made detailed projections over the region wise capacity utilization. As per the report, capacity utilisation in central region is likely to rise over the medium term, on the back of receding impact of sand mining issues, election season in central region states and improving utilisation level of Jaypee Associates’ assets, while utilisation in the western region is likely to be high, on speeding up of DFCCIL projects, Mumbai metro rail project, and road and irrigation projects, due to the upcoming elections in Maharashtra in September 2019. The agency also expects utilization to move in northward direction in east region.
The CNX Nifty is currently trading at 10470.10, up by 235.45 points or 2.30% after trading in a range of 10322.15 and 10492.45. There were 47 stocks advancing against 2 stocks declining, while 1 stock remained unchanged on the index.
The top gainers on Nifty were Eicher Motors up by 6.23%, Bajaj Finance up by 5.75%, Maruti Suzuki up by 5.65%, Mahindra & Mahindra up by 5.48% and Hindalco up by 4.85%. On the flip side, TCS down by 2.53% and HCL Tech down by 1.95% were the only losers.
All Asian markets were trading in green; Nikkei 225 soared 103.80 points or 0.46% to 22,694.66, Hang Seng zoomed 535.12 points or 2.07% to 25,801.49, Taiwan Weighted jumped 239.70 points or 2.39% to 10,045.81, Shanghai Composite added 23.45 points or 0.9% to 2,606.91, Jakarta Composite surged 77.76 points or 1.35% to 5,780.58, KOSPI gained 32.18 points or 1.49% to 2,161.85 and Straits Times was up by 32.99 points or 1.07% to 3,080.38.
All European markets were trading were trading in green; UK’s FTSE 100 increased 35.27 points or 0.5% to 7,042.20, France’s CAC rose 22.07 points or 0.43% to 5,128.44 and Germany’s DAX was up by 53.92 points or 0.47% to 11,593.27.
