Benchmarks extend gains on the streets

Key benchmark indices extend their gains on the streets in late afternoon session, with Sensex and Nifty gaining around 200 and 40 points, respectively. Buying in metal, FMCG and Auto counters providing support to the markets, while buying in blue-chip stocks like Yes Bank, Tata Motors and ITC too aiding sentiments. Market participants remained optimistic on Commerce and Industry Minister Suresh Prabhu’s statement that the development of industrial park rating system would help increase competitiveness of industries and promotion of the manufacturing sector. The system is being developed by the ministry to assess industrial parks in the country based on four pillars internal and external infrastructure, connectivity, environment and safety management, and business support services. Meanwhile, the foreign investors have pumped in nearly Rs 8,285 crore into the Indian capital markets so far this month, after pulling out hefty funds in October, due to fall in crude oil prices, recovery in rupee and improvement in the liquidity situation.

On the global front, European markets are trading mostly in green, despite US Vice President Mike Pence’s statement that the US would not back down from its trade dispute until China changes its ways. Asian markets were trading mostly higher at this point of time, but investors were keeping a close eye on the China-US trade row after Donald Trump’s optimistic comments on a possible deal were offset by a war of words between his vice president and Xi Jinping.

The BSE Sensex is currently trading at 35648.89, up by 191.73 points or 0.54% after trading in a range of 35511.10 and 35723.38. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.21%, while Small cap index was up by 0.29%.

The top gaining sectoral indices on the BSE were Realty up by 1.32%, Metal up by 1.02%, FMCG up by 0.83%, Basic Materials up by 0.78%, Auto up by 0.61%, while Oil & Gas down by 0.86% and PSU was down by 0.46% were the only losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 6.06%, Tata Motors - DVR up by 2.58%, Tata Motors up by 2.45%, ITC up by 2.21% and Vedanta was up by 1.91%. On the flip side, ONGC down by 1.53%, ICICI Bank down by 1.51%, Axis Bank down by 1.40%, Asian Paints down by 1.09% and SBI was down by 0.90% were the top losers.

Meanwhile, amid improving rupee, low inflation coupled with weakening oil prices, the industry chamber, Associated Chambers of Commerce and Industry of India (ASSOCHAM) is expecting foreign institutional investors (FIIs) to stage a strong comeback into India sooner than later. A sharp rally by the rupee was buoyed by big drop in global oil prices. India is the third largest importer of crude oil, and a steep fall in global prices also eases concerns about inflation, fiscal and current account deficit.

Signs of reversal in trend came on November 15, when provisional data with the exchanges showed that foreign funds inflow touched a three-month high of Rs 2,043.06 crore. The rupee and the US dollar equation along with an uncertain domestic and global economic growth outlook had triggered a massive foreign fund outflow from the country’s capital markets in October. Investors pulled out from emerging markets to redeploy their capital into safe-havens such as the US securities.

According to data provided by the National Securities Depository (NSDL), this year outflow of foreign funds stands at Rs 39,209 crore from the equity segment, highest since 2008 when they had withdrawn Rs 51,252 crore in the wake of global crisis. However, another major reason for the funds outflow was the US Federal Reserve’s decision to raise its key interest rate in the month of September. A rate hike by the US Fed generally drives away foreign funds from major emerging markets like India.

The CNX Nifty is currently trading at 10720.70, up by 38.50 points or 0.36% after trading in a range of 10688.80 and 10743.85. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 6.07%, Tata Motors up by 2.25%, ITC up by 2.15%, Vedanta up by 1.96% and Indusind Bank was up by 1.92%. On the flip side, Indiabulls Housing Finance down by 3.72%, GAIL India down by 2.69%, ICICI Bank down by 1.71%, Indian Oil down by 1.57% and Bajaj Finance was down by 1.54% were the top losers.

Asian markets were trading mostly in green; Taiwan Weighted soared 31.60 points or 0.32% to 9,828.69, KOSPI increased 8.16 points or 0.39% to 2,100.56, Shanghai Composite surged 24.40 points or 0.9% to 2,703.51, Hang Seng jumped 188.47 points or 0.71% to 26,372.00 and Nikkei 225 was up by 140.82 points or 0.65% to 21,821.16. On the flip side, Straits Times decreased 16.47 points or 0.54% to 3,067.13 and Jakarta Composite was down by 16.17 points or 0.27% to 5,996.18.

All European markets were trading in green; UK’s FTSE 100 increased 29.79 points or 0.42% to 7,043.67, France’s CAC rose 31.57 points or 0.62% to 5,056.77 and Germany’s DAX was up by 70.33 points or 0.62% to 11,411.33.