Key indices trade near day’s high

Indian equity benchmarks were trading near their intraday high points in late afternoon session, mirroring firm opening of European markets. Buying optimism at Energy and Oil & Gas counters along with easing inflation, spur gains in the markets. India’s retail inflation based on Consumer Price Index (CPI) softened to a one-year low of 3.31% in the month of October 2018, the back of cheaper kitchen staples, fruits and protein-rich items. The street paid no heed towards Moody's Investors Service report stating that global credit conditions will weaken in 2019 as economic growth decelerates, funding costs increase, liquidity tightens and market volatility returns. Traders even overlooked report that several ministries have flagged major concerns over ongoing negotiations for the Regional Comprehensive Economic Partnership (RECP) agreement, with cheap imports from China being the biggest fear, apart from expectations that there will only be limited gains for the country. On the sectoral front, pharma stocks were trading lower, despite reports that after tepid single-digit growth in August and September, the Indian pharmaceutical industry is back on the double-digit track on strong anti-infectives and respiratory segments growth.

On the global front, European markets were trading in green, as the French economy likely retained its growth momentum in the fourth quarter. The pace of growth accelerated to 0.4% in the third quarter from 0.2% in the second quarter, largely underpinned by domestic demand and exports. Besides, Italy's industrial production rose in September after declining in the previous two months. As per preliminary data from the statistical office ISTAT, industrial production grew a calendar adjusted 1.3% year-on-year in September, following a 0.8% fall in August and a 1.3% slump in July. Asian markets were trading in red, as a slew of factors such as concerns about slowing global growth, falling oil prices, Italian budget woes and fears of a peak in corporate earnings growth prompted investors to dump riskier assets.

The BSE Sensex is currently trading at 35105.69, up by 292.70 points or 0.84% after trading in a range of 34672.20 and 35115.22. There were 25 stocks advancing against 6 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.10%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Energy up by 1.84%, Oil & Gas up by 1.78%, Auto up by 1.02%, Bankex up by 0.87% and Capital Goods up by 0.86%, while Healthcare down by 0.84%, Realty down by 0.64% and Consumer Durables down by 0.19% were the only losing indices on BSE.

The top gainers on the Sensex were Hero MotoCorp up by 2.01%, NTPC up by 2.00%, Reliance Industries up by 1.71%, ICICI Bank up by 1.60% and Axis Bank up by 1.53%. On the flip side, Sun Pharma down by 4.28%, Tata Motors down by 2.66%, Tata Motors - DVR down by 2.14%, Power Grid Corporation down by 0.89% and Indusind Bank down by 0.11% were the top losers.

Meanwhile, raising concerns, credit rating agency, ICRA in its latest report has said that the delays in the resolution process beyond the 270-day period have cost the lenders to the first 'dirty list' of 12 large defaulters a whopping Rs 4,000 crore in interest income foregone.

The rating agency further noted that out of the list, only four cases have been resolved so far and the rest cases have crossed 450 days since being admitted by the National Company Law Tribunal (NCLT). Further detailing about the cases, ICRA said that after the bankruptcy laws were passed in May 2016, that pending corporate insolvency cases under the IBC surged to 816 as of the September quarter, from 723 in the June quarter.

ICRA also expressed need for reduction in the timelines for completion of the resolution process to strengthen the IBC process. It further said that another way to speed up the resolution is to lower the minimum threshold of Rs 1 lakh in dues to approach the NCLT.

The CNX Nifty is currently trading at 10564.95, up by 82.75 points or 0.79% after trading in a range of 10440.55 and 10576.30. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.39%, Indian Oil Corporation up by 4.66%, BPCL up by 3.98%, HPCL up by 3.91% and Ultratech Cement up by 3.04%. On the flip side, Sun Pharma down by 4.22%, Tata Motors down by 2.85%, Indiabulls Housing Finance down by 1.94%, Power Grid Corporation down by 0.99% and Cipla down by 0.73% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted decreased 55.37 points or 0.57% to 9,775.84, Nikkei 225 plunged 459.36 points or 2.11% to 21,810.52, Straits Times lost 14.60 points or 0.48% to 3,053.55 and KOSPI fell 9.21 points or 0.44% to 2,071.23. On the flip side, Shanghai Composite increased 24.36 points or 0.92% to 2,654.88, Hang Seng rose 159.69 points or 0.62% to 25,792.87 and Jakarta Composite was up by 66.39 points or 1.14% to 5,843.44.

All European markets were trading in green; UK’s FTSE 100 surged 42.48 points or 0.6% to 7,095.56, France’s CAC added 39.15 points or 0.77% to 5,098.24 and Germany’s DAX was up by 103.08 points or 0.9% to 11,428.52.