Local equities continue to trade in green

Local equity markets continued to trade in green in late morning deals, with gains of around one third a percent. High beta indices like IT and FMCG were, as usual, inched higher with the up-move on the benchmarks. Yes Bank, TCS and Adani Ports were the prime gainers among heavy-weights, pushing the Sensex higher. Trader took note of a report that European Union has unveiled a 'strategy paper' outlining the broad roadmap for stepping up cooperation with India in a range of key sectors, including trade, investment, Defence and security, innovation, and on dealing with various global challenges. Meanwhile, a private report stated that India is keen to ink a trade agreement with Mauritius before Mauritian prime minister’s visit in January next year. Negotiations are under way at present and Mauritius wants duty cuts on its exports of textiles and marine products to India.

On the global front, Asian markets were trading mixed, after a modest rebound in technology and energy shares underpinned gains in US equities. Back on domestic turf, in scrip specific development, Redington gained with arm acquiring additional 24.8% stake in Citrus. Besides, Bajaj Finance surged on raising Rs 200 crore through NCDs.

The BSE Sensex is currently trading at 35341.84, up by 142.04 points or 0.40% after trading in a range of 35225.63 and 35364.50. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.16%, while Small cap index was up by 0.39%.

The top gaining sectoral indices on the BSE were IT up by 1.39%, TECK up by 1.05%, FMCG up by 0.78%, Energy up by 0.42% and Industrials was up by 0.27%, while Telecom down by 1.41%, Metal down by 0.72%, PSU down by 0.49%, Realty down by 0.26% and Utilities was down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.89%, TCS up by 1.84%, Adani Ports up by 1.40%, ONGC up by 1.19% and Infosys was up by 0.97%. On the flip side, Bharti Airtel down by 1.87%, Power Grid Corporation down by 1.20%, Tata Steel down by 1.08%, Coal India down by 0.79% and Mahindra & Mahindra was down by 0.72% were the top losers.

Meanwhile, Credit ratings agency, CRISIL Ratings in its latest report has lowered its sales growth forecast for the passenger vehicles (PVs) industry to 7-9 percent, from its previous estimate of 9-11 percent for the financial year 2019, largely due to sluggish demand and higher inventory even during the festive season. It also indicated that sales of domestic PVs increased by 1.55 percent to 2,84,224 units in October from 2,79,877 units in the corresponding month last year, halting three months of consecutive decline, although low market sentiments affected festive season demand. It added that of this, the car sales volume saw a flat growth, while the utility vehicles segment registered a 4 percent growth.

The ratings agency has stated that Dusshera and Diwali period (September and October/November), which typically contributes a fifth of annual sales, haven’t exactly sparkled for automobile makers or original equipment manufacturers (OEMs). It also observed that over the first 10 days of October, sales were affected due to shraadh (traditionally considered an unauspicious period), during which people in north India don’t buy new cars.

According to the report, sales of commercial vehicles continued to grow at a double-digit rate for the 12th straight month in October, increasing 25 percent year-on-year. It noted that this growth was led by an 18 percent rise in the sales volume of medium and heavy commercial vehicles (MHCV) and a 29 percent rise in the sales volume of light commercial vehicles (LCV). It pointed out that the strong growth momentum in MHCV sales volume was driven by higher growth in the tipper segment, backed by a rise in construction spending and an uptick in industrial activity. It added that the LCVs continued to benefit from steady demand from the rural economy and the consumption-driven and e-commerce sectors.

The CNX Nifty is currently trading at 10637.15, up by 37.10 points or 0.35% after trading in a range of 10605.70 and 10646.25. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Corporation up by 3.05%, Zee Entertainment up by 2.51%, Tech Mahindra up by 2.45%, TCS up by 1.90% and Yes Bank was up by 1.89%. On the flip side, Indian Oil Corporation down by 2.08%, HPCL down by 2.03%, Bharti Airtel down by 2.03%, Bharti Infratel down by 1.93% and BPCL was down by 1.27% were the top losers.

Asian markets were trading mixed; Jakarta Composite surged 39.01 points or 0.65% to 5,987.06, Nikkei 225 soared 126.55 points or 0.58% to 21,634.09, Straits Times gained 1.66 points or 0.05% to 3,040.31, Hang Seng was up by 19.50 points or 0.08% to 25,990.97.

On the other side, KOSPI declined 7.34 points or 0.35% to 2,069.21, Shanghai Composite fell 14.55 points or 0.55% to 2,636.96 and Taiwan Weighted was down by 1.67 points or 0.02% to 9,739.85.