Benchmarks trade in fine fettle in early deals

Indian equity benchmarks made an optimistic start and are trading in fine fettle in early deals on Tuesday, as traders took some support with a private report that the government has generated higher-than-expected revenues from customs duties, which may help it rein in the fiscal deficit within its FY19 target of 3.3% of gross domestic product (GDP). Traders also took encouragement with rating agency Crisil’s report that the rupee may appreciate to 71 against the dollar by March 2019 on positives like the dip in crude prices and the $75-billion currency swap with Bank of Japan. Traders paid no heed towards report that excessive competition at times can result in stress in a particular sector, Finance Minister Arun Jaitley said pointing out that these are challenges of the growing economy. He also said that with the growing economy, the role of each regulator will expand.

On the global front, Asian markets are exhibiting mixed trend with markets seemingly in a holding pattern after a muted US session ahead of midterm elections. The US markets ended mixed on Monday ahead of highly anticipated midterm elections but oil prices lifted energy stocks and defensive sectors.

Back home, select stocks from power sector edged higher with report that average spot power price at Indian Energy Exchange (IEX) rose 45.5% in October at Rs 5.94 per unit over Rs 4.08 per unit in the year-ago month. IEX witnessed highest ever sales volume of 7,125 million units (MU) during the month due to higher demand, coal shortage, lower wind and hydro power generation. In scrip specific developments, Wipro gained on collaborating with Check Point Software Technologies, HCL Technologies soared on entering into partnership with Deutsche Bank and Tata Motors edged higher on entering into agreement with Gulf Oil Lubricants.

The BSE Sensex is currently trading at 35080.22, up by 129.30 points or 0.37% after trading in a range of 35018.13 and 35196.03. There were 22 stocks advancing against 9 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.16%, while Small cap index was up by 0.33%.

The top gaining sectoral indices on the BSE were TECK up by 1.05%, Telecom up by 1.04%, IT up by 1.02%, Energy up by 0.79% and Industrials was up by 0.62%, while Metal down by 0.94%, Basic Materials down by 0.45%, Healthcare down by 0.25%, PSU down by 0.12% and FMCG was down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 4.17%, Tata Motors up by 3.69%, TCS up by 1.49%, Sun Pharma up by 1.40% and Infosys up by 1.33%. On the flip side, Vedanta down by 5.87%, SBI down by 1.98%, Mahindra & Mahindra down by 0.51%, NTPC down by 0.39% and HDFC down by 0.31% were the top losers.

Meanwhile, pointing out challenges of the growing economy, Finance Minister Arun Jaitley has said that excessive competition at times can result in stress in a particular sector. He also said that with the growing economy, the role of each regulator will expand.

Jaitley said ‘Excessive competition at times can result in pricing of nature that the sector of the economy itself feels stressed because everybody then tends to follow the leader.’ He added that ‘Therefore, what do you do in such situation of this kind. These are all challenges which are going to emerge as economy moves further and expand further.’ He also said if the current growth rate continues for a decade or two, Indian economy expansion is going to be exponential.

The Finance Minister further said the size is going to increase, the size of industry is going to increase, the size of services sector will increase and the role of each regulator while exercising self-restraint will also expand. Explaining the object of the competition law, he said protection of consumer interest was a key pillar of this. He highlighted that the government wanted effective market players, reasonably optimum in number so that the consumer interest is protected. That was the object of the competition law when the state withdraws and leaves the economy to markets.

The CNX Nifty is currently trading at 10566.60, up by 42.60 points or 0.40% after trading in a range of 10543.25 and 10600.25. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 3.61%, Sun Pharma up by 1.80%, Bajaj Finserv up by 1.78%, TCS up by 1.73% and GAIL India up by 1.61%. On the flip side, Vedanta down by 5.71%, Cipla down by 4.01%, SBI down by 1.86%, Indian Oil Corporation down by 0.68% and Maruti Suzuki down by 0.63% were the top losers.

Asian markets are trading mixed; Nikkei 225 surged 239.47 points or 1.08% to 22,138.46, Jakarta Composite increased 5.68 points or 0.1% to 5,926.27 and KOSPI was up by 2.09 points or 0.1% to 2,079.01.

On the flip side, Taiwan Weighted decreased 77.89 points or 0.79% to 9,811.92, Hang Seng slipped 39.69 points or 0.15% to 25,894.70 and Shanghai Composite was down by 28.08 points or 1.06% to 2,637.35.