Equity markets pare gains; Metal, PSU stocks down

Domestic equity markets continued to trade in the green zone in the early noon session due to continued foreign capital inflows. As per provisional data from the stock exchanges, foreign investors pumped in Rs 2043.06 crore on November 15, 2018. Buying in Telecom, Energy and Healthcare stocks also helped markets to remain in the green trajectory. Sentiments remained upbeat with RBI’s independent director S Gurumurthy stating that India’s economy would have collapsed if it were not for Narendra Modi’s demonetisation. Investors also took some support with Reserve Bank’s data showing that cash in circulation has almost doubled during the Diwali week ending November 09 to Rs 49,420 crore from Rs 28170 crore in the Diwali week last year. However, the markets pared gains due to selling in Metal, and PSU stocks. Oil & Gas sector was also amongst the top losers as oil prices rose amid expectations of supply cuts from OPEC, although record US production dragged.

On the global front, Asian markets were exhibiting mixed trend as hopes for a thaw in the Sino-U.S. trade standoff were tempered by disappointing results from U.S. chipmaker Nvidia Corp which slugged the tech sector. Back home, traders turned cautious with Fitch’s report highlighting that India’s growth is expected to decelerate to 7.3 percent in FY20 and FY21 due to risks from tightening financial conditions, high oil prices. It also said that the government may find it tough to meet its fiscal deficit target of 3.3 percent.

The BSE Sensex is currently trading at 35402.50, up by 141.96 points or 0.40% after trading in a range of 35324.37 and 35545.85. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.21%, while Small cap index was down by 0.02%.

The top gaining sectoral indices on the BSE were Telecom up by 3.24%, Energy up by 1.09%, Healthcare up by 0.47%, TECK up by 0.44% and FMCG was up by 0.42%, while Metal down by 0.92%, PSU down by 0.71%, Oil & Gas down by 0.55%, Bankex down by 0.30% and Consumer Durables down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 5.99%, Reliance Industries up by 2.13%, HDFC Bank up by 1.45%, HDFC up by 1.27% and Wipro up by 0.93%. On the flip side, Yes Bank down by 6.70%, ONGC down by 2.49%, Tata Steel down by 1.57%, Infosys down by 1.26% and Axis Bank down by 0.98% were the top losers.

Meanwhile, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya has said that after the Goods and Services Tax (GST) implementation, the pharmaceutical sector grew 6% to Rs 1,31,312 crore on a year-on-year basis till May 31 current year.   Mandaviya further highlighted that impact of the GST on the sector has largely been positive and constructive. He also said that before GST, annual turnover of the pharma sector as on May 31, 2017 was Rs 1,14,231 crore. There has also been a significant jump in the number of drug approvals after GST.

He has pointed out that Pharmaceutical companies can now consolidate their warehouses at strategic locations, effecting a reduction in the cost of distribution. Accordingly, it will benefit warehouse strategy and improve supply chain efficiency in the sector. Elaborating on the reasons for the growth, he said that under the 'One Nation, One Tax' regime, the removal of complexity of multiple taxes has reduced their cascading effect on the final product.

Besides, he stated that it is expected that GST will to decrease the manufacturing cost in view of merging of different taxes levied earlier and promote ease of doing business. It will create one single market for all stakeholders with equal chance towards development.

The CNX Nifty is currently trading at 10654.55, up by 37.85 points or 0.36% after trading in a range of 10633.80 and 10695.15. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 5.39%, HCL Tech up by 2.97%, Eicher Motors up by 2.44%, Reliance Industries up by 2.22% and Zee Entertainment up by 2.11%. On the flip side, Yes Bank down by 6.61%, Indiabulls Housing down by 3.98%, JSW Steel down by 2.71%, ONGC down by 2.64% and Indian Oil down by 2.15% were the top losers.

Asian markets were trading mixed; traits Times increased 28.38 points or 0.92% to 3,082.91, KOSPI increased 3.27 points or 0.16% to 2,091.33, Shanghai Composite increased 24.35 points or 0.9% to 2,692.52 and Jakarta Composite increased 85.52 points or 1.42% to 6,041.26.

On the flip side, Hang Seng decreased 9.740 points or 0.04% to 26,093.60, Taiwan Weighted decreased 29.37 points or 0.3% to 9,797.09 and Nikkei 225 decreased 123.28 points or 0.57% to 21,680.34.