Firm trade persists on Dalal Street

Key barometer gauges continued their firm trade in afternoon session, on the back of mostly positive trade in Asian equities coupled with sustained buying by domestic institutional investors. Domestic sentiments remained firm with Union Minister Suresh Prabhu’s statement that the commerce and industry ministry is preparing an action plan for implementing the proposed new industrial policy, aimed at promoting manufacturing and economic growth of the country. The markets also drew some solace with a private report that the Reserve Bank of India (RBI) may have to conduct open market operations (OMOs) of another Rs 1,60,000 crore in the fourth quarter of the current fiscal to tide over the banking liquidity crisis. Besides, short-covering by participants with Thursday being the last trading session of the November series of derivative contracts also supported the sentiments. Rally in rupee, which gained 72 paise against the US dollar, also supported the up move in the domestic stock market.

On the global front, Asian markets are trading mostly in green, tracking a surge on Wall Street, after the chairman of the US Federal Reserve suggested it may nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets. Back home, the BSE Sensex is currently trading at 36083.15, up by 366.20 points or 1.03% after trading in a range of 35946.24 and 36122.99. There were 25 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.42%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Metal up by 1.46%, Consumer Durables up by 1.42%, Energy up by 1.39%, Auto up by 1.06% and Realty up by 1.03%, while IT down by 0.29%, TECK down by 0.18% and Telecom down by 0.05% were the few losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 3.16%, Mahindra & Mahindra up by 2.91%, Bajaj Auto up by 2.49%, Tata Motors up by 2.24% and Reliance Industries up by 2.03%. On the flip side, Yes Bank down by 6.12%, ONGC down by 2.03%, Coal India down by 1.53%, Sun Pharma down by 0.75% and TCS down by 0.54% were the top losers.

Meanwhile, Telecom Regulatory Authority of India (TRAI) will initiate an in-depth discussion with the telecom service providers on general principles related to spectrum including its valuation methodology, trading, sharing and leasing in the year 2019. TRAI chairman R S Sharma has clarified that the upcoming deliberations will not have any bearing on the past recommendations of TRAI on the auction of radio-waves.

Sharma further stated that the discussions assume significance as now they have a new National Digital Communications Policy in place and there are a lot of statements in the policy which will require deliberations. He said “we wanted to consult with the telecom service providers to figure out their view point on priority areas.” He also noted that other issues that will be taken up by the regulator next year include fiberisation, redesigning of Universal Service Obligation Fund (USOF) and designing of broadband readiness index for states -- a concept enshrined in the National Digital Communications Policy.

The telecom sector has been hurt by falling tariffs, eroding profitability, and mounting debt in the face of stiff competition triggered by disruptive offerings of Reliance Jio, owned by Mukesh Ambani. The industry has sought urgent relief measures for the troubled telecom sector, entailing debt restructuring, cut in levies like licence fee and spectrum charges, and release of GST input tax credit locked up with the government.

The CNX Nifty is currently trading at 10829.40, up by 100.55 points or 0.94% after trading in a range of 10782.35 and 10836.30. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.05%, Bajaj Finserv up by 3.43%, Vedanta up by 3.14%, BPCL up by 3.12% and Bajaj Finance up by 3.00%. On the flip side, Yes Bank down by 6.20%, HCL Tech. down by 2.41%, ONGC down by 2.17%, Coal India down by 1.65% and TCS down by 0.87% were the top losers.

Asian markets are trading mostly in green; Nikkei 225 increased 85.58 points or 0.38% to 22,262.60, Jakarta Composite added 90.03 points or 1.48% to 6,081.28, Straits Times surged 17.11 points or 0.55% to 3,111.59, KOSPI increased 5.88 points or 0.28% to 2,114.10 and Taiwan Weighted was up by 1.05 points or 0.01% to 9,885.36.

On the flip side, Hang Seng decreased 242.58 points or 0.92% to 26,439.98 and Shanghai Composite shed 27.95 points or 1.09% to 2,573.79.