Local equities continue to exhibit positive trend

Mirroring firm global cues, local equity benchmarks continued to exhibit positive trend in morning session, with Sensex gaining over half a percent. Traders remained energized with Commerce and Industry Minister Suresh Prabhu’s statement that he has taken up the issue of declining credit to exporters with the finance ministry to ensure adequate availability of funds to them. He said exports are growing and the ministry is taking steps to further accelerate the growth rate. On the sectoral front, banking stocks were trading in green, as a private report stated that banks' total credit to industry, retail and services doubled to 15.6% on year as of first week of November amid acceleration in consumption and revival of investment sentiment. Traders also took note of RBI Governor Urjit Patel's statement that the note ban's impact was transient and the economy is robust. The economy would get a boost from oil prices cooling off from four-year highs and asserted that the fundamentals were ‘robust’.

On the global front, Asian markets were trading mostly in green, following the positive cues overnight from Wall Street after comments from top White House economic advisor Larry Kudlow about trade talks with the Chinese government ‘at all levels’. Back home, India is expected to become the largest coking coal importer through sea route by 2022 as the country pushes for more steel production.

The BSE Sensex is currently trading at 35702.22, up by 189.08 points or 0.53% after trading in a range of 35605.34 and 35758.87. There were 21 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.03%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were IT up by 1.58%, TECK up by 1.28%, Consumer Durables up by 0.68%, FMCG up by 0.44% and Bankex was up by 0.40% while, Realty down by 1.60%, Telecom down by 1.40%, Power down by 0.44%, Healthcare down by 0.34% and PSU was down by 0.26% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.54%, TCS up by 1.60%, IndusInd Bank up by 1.40%, HDFC Bank up by 0.87% and Hero MotoCorp was up by 0.86%. On the flip side, Yes Bank down by 4.26%, NTPC down by 1.85%, Bharti Airtel down by 1.72%, Adani Ports down by 1.40% and Tata Motors - DVR was down by 1.27% were the top losers.

Meanwhile, with an aim to explore logistics partnerships with India, the Federation of Indian Export Organisations (FIEO) has said that it will organize a mega logistics meet from January 31, 2019-February 2, 2019. Mega logistics meet will improve logistics cost effectiveness and operational efficiencies for India’s global trade.

It is expected that over 20 countries including Afghanistan, Iran and Iraq to participate in a mega logistics meet early next year. The meet will focus on investment opportunities in infrastructure development, warehouse consolidation, technology integration and IT enablement and skilling of manpower.

Besides, the cost of logistics in India is a high 14 per cent, whereas in developed economies, its nearer 8 per cent. India ranked 44 in the World Bank’s Logistics Performance Index 2018. According to the Economic Survey 2017-18, India’s logistics industry is worth around $160 billion and is likely to touch $215 billion in the next two years.

The CNX Nifty is currently trading at 10723.80, up by 38.20 points or 0.36% after trading in a range of 10699.85 and 10742.40. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 3.19%, Infosys up by 2.42%, TCS up by 1.68%, Titan Co up by 1.27% and Hero MotoCorp was up by 1.24%. On the flip side, Yes Bank down by 4.05%, Bharti Airtel down by 2.42%, Bharti Infratel down by 2.18%, Indian Oil Corporation down by 1.70% and Grasim Industries was down by 1.65% were the top losers.

Asian market were trading mostly in green; Nikkei 225 gained 221.85 points or 1% to 22,174.25, KOSPI surged 5.87 points or 0.28% to 2,105.29, Shanghai Composite soared 22.16 points or 0.85% to 2,596.84, Hang Seng rose 228.39 points or 0.86% to 26,560.35 and Taiwan Weighted was down by 60.61 points or 0.62% to 9,839.23.

On the other hand, Jakarta Composite slipped 10.62 points or 0.18% to 6,002.97 and Straits Times was down by 0.45 points or 0.01% to 3,089.95.