Indices pare gains but continue to trade in green terrain

Indian stock markets continued to trade in the positive terrain in the early noon session amid buying in blue chip stocks from across various sectors. Buying in IT, TECK and Capital Goods stocks also helped markets to trade higher. Rupee appreciation and fall in crude oil prices too supported investors’ sentiments. Oil prices dipped after U.S. crude inventories increased to their highest level since December 2017 amid concerns of an emerging global glut, although an expected supply cut by producer cartel OPEC prevented further drops. The market breadth on BSE was positive, out of 2340 stocks traded, 1220 stocks advanced, while 990 stocks declined and 130 stocks remained unchanged on the BSE. The broader indices were also trading in green. However, the markets pared initial gains due to selling of Metal, PSU and Realty stocks. Investors were a bit concerned with a report highlighting that foreign institutional investors (FIIs) sold shares worth a net Rs 1652.04 crore on November 21, 2018.

On the global front, Asian markets were exhibiting mixed trend. Back home, telecom sector was in limelight with Secretary of Department of Telecommunications (DoT) Aruna Sundararajan stating that India will need to have fundamental rethink on satellite communication policy to fulfill growing connectivity demands which are being fuelled by mobile data growth, digital aspirations and advent of new-age technologies.

The BSE Sensex is currently trading at 35276.64, up by 76.84 points or 0.22% after trading in a range of 35225.63 and 35364.50. There were 13 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.04%, while Small cap index up by 0.36%.

The top gaining sectoral indices on the BSE were IT up by 0.94%, TECK up by 0.80%, FMCG up by 0.42%, Capital Goods up by 0.41% and Industrials up by 0.29%, while Metal down by 0.94%, PSU down by 0.51%, Realty down by 0.39%, Telecom down by 0.39% and Consumer Durables down by 0.38% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.61%, Adani Ports up by 1.32%, ONGC up by 0.92%, Yes Bank up by 0.88% and Larsen & Toubro up by 0.87%. On the flip side, Tata Steel down by 1.50%, Coal India down by 1.19%, Power Grid down by 1.04%, Mahindra & Mahindra down by 0.98% and Bharti Airtel down by 0.71% were the top losers.

Meanwhile, secretary of Department of Telecommunications (DoT) Aruna Sundararajan has said that India will need to have fundamental rethink on satellite communication policy to fulfill growing connectivity demands which are being fuelled by mobile data growth, digital aspirations and advent of new-age technologies. She outlined the rapid growth of mobile data usage, driven by first-time users, and India's rising digital clout, and mentioned that there is no looking back for the country when it comes to strengthening its communications infrastructure.

Sundararajan has stated that in an era of 5G and Internet of Things (IOT), the demand for communication infrastructure far from slowing down, will increase exponentially. She said “we must have digital communications infrastructure that facilitates all this...We really must have a fundamental rethink on India's satcom policy in light of what are the emerging requirements and India's aspirations.” She pointed out that the demand for communication network is also being impelled by financial service industry, digital payment companies, smartphone usage and social media. 

The DoT Secretary further said that a new telecom policy -- the National Digital Communications Policy (NDCP) 2018, aims to provide universal broadband connectivity at 50Mbps to every citizen by 2022, create four million additional jobs, and also talks of enhancing the sector’s contribution to the Gross Domestic Product (GDP) to 8 percent from 6 percent in 2017. She said “if we are to achieve robust modern digital communications infrastructure that the country needs...it has estimated the need for investment at $100 billion.” Stating that the country must embark on comprehensive review of its satellite communications policy, she stressed on the need to strike a balance between autonomy, security and the country's communications demand.

The CNX Nifty is currently trading at 10618.80, up by 18.75 points or 0.18% 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 up by 2.36%, Zee Entertainment up by 2.30%, Tech Mahindra up by 1.85%, TCS up by 1.63% and Adani Ports up by 1.38%. On the flip side, Indian Oil down by 1.91%, HPCL down by 1.85%, Tata Steel down by 1.29%, Ultratech Cement down by 1.28% and BPCL down by 1.27% were the top losers.

Asian markets were trading mixed; Hang Seng increased 28.490 points or 0.11% to 25,999.96, Nikkei 225 increased 139.01 points or 0.64% to 21,646.55, Jakarta Composite increased 39.01 points or 0.65% to 5,987.06 and Straits Times increased 3.81 points or 0.13% to 3,042.46.

On the flip side, KOSPI decreased 7.59 points or 0.37% to 2,068.96, Taiwan Weighted decreased 26.81 points or 0.28% to 9,714.71 and Shanghai Composite decreased 7.02 points or 0.27% to 2,644.49.