Bourses near day’s high; Sensex gains over 300 points

Key Indian equity benchmarks extended gains in late afternoon session to reach their near intraday high points, aided by firm opening of European markets. The optimism remained on the street, with the Organization for Economic Cooperation and Development’s (OECD) statement that it is expecting India’s economy to grow close to 7.5% in 2019 and 2020. India’s gross domestic product (GDP) grew 6.7% in 2017-18. Some comfort also came with a private report indicating that the Reserve Bank of India is expected to keep the key policy rates unchanged at its ensuing policy review meet next month, amid easing global crude oil prices and robust agriculture production. Traders took note of Economic Affairs Secretary Subhash Chandra Garg’s statement that the Reserve Bank of India should provide more liquidity to non-banking finance companies (NBFCs) in a bid to boost lending. However, the broader indices failed to join rally in late noon deals, with Small cap index falling 0.24%.

On the sectoral front, banking stocks were trading higher, as bank credit rose 14.88% to Rs 91.11 lakh crore in the fortnight ended November 9, while deposits grew by 9.13% to Rs 118.25 lakh crore. However, metal stocks remained under pressure, after World Steel Association (worldsteel) reported that India registered a marginal growth in its crude steel output at 8.77 million tonne (MT) during October 2018. The country had produced 8.73 MT crude steel during the same month a year ago. Further, realty stocks were in focused with Care Ratings’ latest report stating that India's infrastructural landscape is changing quickly. Over the last four years, the Narendra Modi-led government has focused heavily on infrastructural development, with the total number of projects rising 87%. At present, 1,361 projects are being implemented in the country. Besides, stocks related to coal industry remained in limelight, amid reports that the Geological Survey of India (GSI) has found 44 new coal blocks in four states of Eastern India.

On the global front, European markets were trading in green, after EU leaders backed UK Prime Minister Theresa May's Brexit withdrawal agreement despite last-minute concerns from Spain. Adding some optimism, France's manufacturing confidence has increase in November after easing in the previous two months. The figures from the statistical office INSEE showed that the manufacturing confidence index rose to 105 from 104 in October. Meanwhile, France's private sector growth slowed less-than-expected in November at the slowest pace in two months. As per survey data from IHS Markit, the composite Purchasing Managers' Index, or PMI, which combines manufacturing and services, fell to 54 from 54.1 in October. The street had expected a reading of 53.9. Asian markets were also trading in green, amid bets that US President Donald Trump and his Chinese counterpart Xi Jinping will find a solution to the trade dispute at the Group of 20 summit in Buenos Aires this week.

The BSE Sensex is currently trading at 35282.05, up by 301.03 points or 0.86% after trading in a range of 34896.07 and 35283.14. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.13%, while Small cap index was down by 0.24%.

The top gaining sectoral indices on the BSE were FMCG up by 1.86%, Telecom up by 1.06%, Bankex up by 0.99%, TECK up by 0.74% and Consumer Disc up by 0.66%, while Metal down by 2.00%, Healthcare down by 1.09%, Basic Materials down by 0.79%, PSU down by 0.76% and Utilities down by 0.58% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.91%, Wipro up by 2.93%, Asian Paints up by 2.52%, Indusind Bank up by 2.21% and Bharti Airtel up by 2.15%. On the flip side, Yes Bank down by 5.42%, ONGC down by 3.94%, Coal India down by 3.21%, Sun Pharma down by 2.98% and Vedanta down by 2.73% were the top losers.

Meanwhile, raising concerns, credit rating agency, India Ratings (Ind-Ra) in its latest report has said that a change of even $1 per barrel would impact India’s import bill by Rs 6,160 crore, as the country continues to be a large importer of crude oil. India meets over 80% of its oil demand through imports.

The rating agency further noted that oil prices may rebound, if the organisation of the petroleum exporting countries (OPEC) and its allies take decision to hold their supply, and added that Russia and Saudi Arabia are the largest exporters of oil globally and the US produces only about 11.5 million barrels a day.

As per the report, Brent crude oil price, the global benchmark for crude prices, continued its upward trajectory to hit a four-year high of $86.07 per barrel on October 4 this year, as the market grappled with the expected loss of oil supply from sanction-hit Iran.

The CNX Nifty is currently trading at 10610.20, up by 83.45 points or 0.79% after trading in a range of 10489.75 and 10610.45. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.90%, Wipro up by 3.00%, Asian Paints up by 2.39%, Indusind Bank up by 2.35% and BPCL up by 2.28%. On the flip side, Yes Bank down by 5.24%, ONGC down by 4.11%, Coal India down by 3.35%, Sun Pharma down by 3.15% and Vedanta down by 2.78% were the top losers.

Asian markets were trading mostly in green; Straits Times increased 28.96 points or 0.94% to 3,081.45, Hang Seng zoomed 448.50 points or 1.7% to 26,376.18, Jakarta Composite gained 3.75 points or 0.06% to 6,009.95, Nikkei 225 jumped 165.45 points or 0.76% to 21,812.00, KOSPI rose 25.54 points or 1.23% to 2,083.02 and Taiwan Weighted surged 98.06 points or 1% to 9,765.36. On the flip side, Shanghai Composite was down by 3.67 points or 0.14% to 2,575.81.

All European markets were trading in green; UK’s FTSE 100 added 82.63 points or 1.17% to 7,035.49, France’s CAC gained 69.40 points or 1.38% to 5,016.35 and Germany’s DAX was up by 136.95 points or 1.21% to 11,329.64.