Indian bourses continue to trade in positive territory

Key benchmark indices continued to trade in positive territory in afternoon session, backed by gains in bluechip stocks, including Tata Motors - DVR, Tata Motors, Yes Bank and ICICI Bank. Sentiments remained positive 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). Some optimism also came 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. Besides, recovery in the rupee value against dollar along with encouraging earnings by some blue-chip firms also helped in building positive sentiments. The market participants overlooked 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 were trading mixed, as investors awaited the U.S. midterm elections. Back home, the BSE Sensex is currently trading at 35108.92, up by 158.00 points or 0.45% after trading in a range of 35018.13 and 35196.03. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index slipped 0.03%, while Small cap index was up by 0.37%.

The top gaining sectoral indices on the BSE were Telecom up by 1.17%, Realty up by 1.04%, Energy up by 1.03%, TECK up by 1.03% and IT up by 0.98%, while Metal down by 1.78%, Basic Materials down by 0.85%, FMCG down by 0.48%, PSU down by 0.17% and Healthcare down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors - DVR up by 4.31%, Tata Motors up by 4.24%, Yes Bank up by 3.09%, ICICI Bank up by 2.34% and TCS up by 2.08%. On the flip side, Vedanta down by 6.88%, Axis Bank down by 3.17%, Indusind Bank down by 1.86%, SBI down by 1.66% and ITC down by 0.75% were the top losers.

Meanwhile, amidst authorities working on ways to tackle the Infrastructure Leasing and Financial Services (IL&FS) crisis, Corporate Affairs Secretary Injeti Srinivas has said that the segment of housing finance within the Non-banking finance companies (NBFC) sector is facing liquidity problems but there is no crisis. He also stressed upon need for introspecting the business models followed in the NBFC sector and adopt the model that is sustainable.

Noting that liquidity challenges are more pronounced in some companies, Srinivas has said that it is across the NBFC sector that requires overall easing, and adequate steps being taken at the macro-level. He said “So, I don't see any crisis. It will be addressed duly in the short term. In the medium and the long term, the way you finance and expand all these will have to look into. All entities should follow sustainable business development approach.”

Corporate Affairs Secretary informed that the government has been taking steps to address the liquidity issue in the overall financial system and the RBI infused liquidity by way of purchasing bonds in the last few weeks. Talking about the Serious Fraud Investigation Office (SFIO) probe into the IL&FS case, he said there is progress on that front. He noted that there are more than 300 companies and there are many issues. He added that SFIO is investigating and it is taking deposition from key personnel.

The CNX Nifty is currently trading at 10560.40, up by 36.40 points or 0.35% after trading in a range of 10539.35 and 10600.25. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.16%, Yes Bank up by 3.14%, ICICI Bank up by 2.42%, TCS up by 2.06% and Sun Pharma up by 1.69%. On the flip side, Vedanta down by 7.01%, Cipla down by 6.19%, Axis Bank down by 3.17%, Indian Oil Corp. down by 2.60% and HPCL down by 1.76% were the top losers.

Asian markets were trading mixed; Hang Seng increased 101.30 points or 0.39% to 26,035.69, KOSPI increased 12.70 points or 0.61% to 2,089.62 and Nikkei 225 increased 248.76 points or 1.12% to 22,147.75. On the flip side, Shanghai Composite decreased 8.65 points or 0.33% to 2,656.78., Jakarta Composite decreased 3.80 points or 0.06% to 5,916.79 and Taiwan Weighted decreased 64.86 points or 0.66% to 9,824.95.