Bourses continue to trade in fine fettle

Key benchmark indices continued to trade in fine fettle in afternoon session, led by buying in IT, Consumer Durables and Energy counters. Among heavy-weights Infosys, TCS, Indusind Bank and Reliance Industries exhibited a smart performance. Sentiments remained up-beat with a private report that the credit growth to the real economy has shown a healthy growth. The data denotes that the loans and advances by NBFCs clocked growth of 17.9 per cent for the quarter ended June 2018 and 20.1 per cent for the quarter ended September 2018 YoY. Investors took encouragement from 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, as investors held out hope that a weekend meeting between the U.S. and Chinese leaders can ease trade tensions. Back home, on the sectoral front banking stocks are on focus with a private report stating that the Banks' total credit to industry, retail and services doubled to 15.6 percent on year as of first week of November amid acceleration in consumption and revival of investment sentiment.

The BSE Sensex is currently trading at 35798.42, up by 285.28 points or 0.80% after trading in a range of 35605.34 and 35804.66. There were 18 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.12%, while Small cap index was up by 0.15%.

The top gaining sectoral indices on the BSE were IT up by 3.06%, TECK up by 2.55%, Consumer Durables up by 0.93%, Bankex up by 0.47% and Energy was up by 0.45%, while Realty down by 1.37%, Telecom down by 0.81%, PSU down by 0.38%, Oil & Gas down by 0.32% and Industrials was down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 3.77%, TCS up by 3.66%, Indusind Bank up by 1.81%, HDFC Bank up by 1.40% and Reliance Industries was up by 1.26%. On the flip side, Yes Bank down by 6.36%, Tata Motors down by 1.97%, Tata Motors - DVR down by 1.63%, Bharti Airtel down by 0.97% and Adani Ports &Special was down by 0.84% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Urjit Patel, who appeared before the Parliamentary Standing Committee on Finance, has stated that the central bank needed to keep a capital cushion in view of global financial uncertainty.

The RBI governor further said that the economy would get a boost from oil prices cooling off from four-year highs, and said fundamentals were robust. Moreover, he said that credit growth was 15 percent, inflation came down to 4 percent and cash to GDP ratio improved. Talking about the government's demonetisation decision, he said that the impact of November 2016 demonetisation had a transient on the economy.

Besides, talking about the implementation of the Basel III capital adequacy norms for banks, ha said adherence to the global norms was India’s commitment to G-20 nations. Additionally, at present, India's banking system, particularly state-owned banks, is grappling with huge bad loans. Recently, there has been a liquidity crisis for the important NBFC sector following re-payment default by IL&FS.

The CNX Nifty is currently trading at 10755.95, up by 70.35 points or 0.66% after trading in a range of 10699.85 and 10757.35. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were TCS up by 3.85%, Infosys up by 3.62%, Zee Entertainment up by 2.62%, Indusind Bank up by 1.50% and HCL Tech was up by 1.47%. On the flip side, Yes Bank down by 6.21%, Tata Motors down by 2.36%, BPCL down by 2.24%, Indian Oil Corp. down by 1.99% and Grasim Industries was down by 1.23% were the top losers.

Asian markets were trading mostly in green; KOSPI surged 8.80 points or 0.42% to 2,108.22, Nikkei 225 jumped 224.62 points or 1.01% to 22,177.02, Taiwan Weighted advanced 105.69 points or 1.07% to 9,884.31, Hang Seng rose 327.74 points or 1.23% to 26,659.70, Straits Times increased 7.49 points or 0.24% to 3,097.89 and Shanghai Composite was up by 23.60 points or 0.91% to 2,598.28.

On the flip side, Jakarta Composite was down by 3.84 points or 0.06% to 6,009.75.