Firm trade persists on Dalal Street

Firm trade continued on the Dalal Street in late afternoon session, aided by firm cues from European markets. Domestic sentiments were optimistic, as banks credit flow to commercial sector has gone up by 15.6% on year-on-year basis, registering highest growth since demonetisation. According to the fortnightly data released by the Reserve Bank of India (RBI), the adjusted non-food bank credit stood at Rs 97.32 lakh crore as on November 9, 2018 as compared to Rs 84.22 lakh crore reported in the year-ago fortnight. Some comfort also came with a private report stating that Indian analytics, data science and big data industry is estimated to be $2.71 billion in revenues and growing at a healthy rate of 33.5% CAGR.  However, the broader markets were trading contradictory to the larger peers, with both Mid cap and Small cap losing more than 0.35%. On the sectoral front, stocks related to minerals and mining industry remained in limelight, amid reports that the Geological Survey of India (GSI) is going to use ultra-modern remote-sensing technology developed by the National Aeronautics and Space Administration (NASA) for the first time in India to map surface mineralogy.

On the global front, European markets were trading in green, as UK retail sales growth in November was greater than expected, though retailers are gloomy about activity in the next three months. The survey by the Confederation of British Industry showed that the monthly retail sales balance of the Distributive Trades survey rose to +9 from +5 in October. The street overlooked reports that France's consumer confidence dropped in November to its lowest level since early 2015. As per survey data from the statistical office INSEE, the consumer confidence index fell to 92 from 95 in October. Asian markets were also trading in green, on hopes for a positive outcome from Donald Trump's high-stakes trade talks with Xi Jinping, while dovish comments from the Federal Reserve's number-two suggested the bank could slow its pace of interest rate hikes.

The BSE Sensex is currently trading at 35781.99, up by 268.85 points or 0.76% after trading in a range of 35605.34 and 35822.16. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.36%, while Small cap index was down by 0.38%.

The top gaining sectoral indices on the BSE were IT up by 3.37%, TECK up by 2.79%, Energy up by 0.80%, Consumer Durables up by 0.66% and Bankex up by 0.13%, while Telecom down by 1.97%, Realty down by 1.84%, PSU down by 1.50%, Oil & Gas down by 0.88% and Industrials down by 0.85% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 4.33%, TCS up by 4.11%, Reliance Industries up by 2.08%, HDFC Bank up by 1.65% and Indusind Bank up by 1.55%. On the flip side, Yes Bank down by 8.71%, Tata Motors down by 2.67%, Bharti Airtel down by 2.37%, Tata Motors - DVR down by 2.19% and Sun Pharma down by 1.97% were the top losers.

Meanwhile, banks credit flow to commercial sector has gone up by 15.6 per cent on year-on-year basis, registering highest growth since demonetisation. According to the fortnightly data released by the Reserve Bank of India (RBI), the adjusted non-food bank credit stood at Rs 97.32 lakh crore as on November 9, 2018 as compared to Rs 84.22 lakh crore reported in the year-ago fortnight.

Adjusted non-food bank credit consists of non-food bank credit and total non-statutory liquidity ratio (SLR) investments of banks in commercial papers, shares and bonds/debentures and as per the report, the non-food credit surged 15.12 percent to Rs 90.51 lakh crore during the reported fortnight, while the total non-SLR investments was up by 22.26 percent to Rs 6.81 lakh crore as against Rs 5.57 lakh crore.

Meanwhile, bank credit was lowest during the November 2016 to March 2017 period, following the government's move to demonetise high-value currency notes on November 8, 2016.

The CNX Nifty is currently trading at 10740.30, up by 54.70 points or 0.51% after trading in a range of 10699.85 and 10757.80. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were TCS up by 4.16%, Zee Entertainment up by 4.06%, Infosys up by 3.99%, HCL Tech. up by 2.24% and Reliance Industries up by 2.15%. On the flip side, Yes Bank down by 8.87%, BPCL down by 4.26%, HPCL down by 3.80%, Tata Motors down by 2.67% and Eicher Motors down by 2.66% were the top losers.

Asian markets were trading mostly in green; Straits Times increased 2.82 points or 0.09% to 3,093.22, Hang Seng zoomed 350.60 points or 1.31% to 26,682.56, Nikkei 225 soared 224.62 points or 1.01% to 22,177.02, KOSPI added 8.80 points or 0.42% to 2,108.22, Taiwan Weighted gained 105.69 points or 1.07% to 9,884.31 and Shanghai rose increased 27.06 points or 1.04% to 2,601.74. On the flip side, Jakarta Composite was down by 18.99 points or 0.32% to 5,994.60.

All European markets were trading in green; UK’s FTSE 100 surged 8.97 points or 0.13% to 7,025.82, France’s CAC added 8.98 points or 0.18% to 4,992.13 and Germany’s DAX was up by 0.42 points to 11,309.53.