Local equities extend gains in morning trade

Local equity benchmarks extended their gains in morning session, with Sensex and Nifty gaining around 80 and 25 points, respectively. High beta indices like IT and Power inched higher with the up-move on the benchmarks. Among heavy-weights IndusInd Bank, Vedanta and Infosys exhibited a smart performance. Traders took note of Reserve Bank of India (RBI) governor Shaktikanta Das’ statement that financial stability has emerged as a key consideration for monetary policy formulation in post-2008 financial crisis, beyond the imperatives of inflation and growth. However, further gains remain arrested, as Global rating agency Fitch cut India’s GDP growth rate forecast for FY20 by 20 bps to 6.6 per cent, even as it retained FY21 estimate at 7.1 per cent. Earlier this year, Fitch Ratings had slashed India’s growth forecast for the next financial year beginning April 1, to 6.8 per cent from its previous estimate of 7 per cent. Besides, a private report stated that planting of summer-sown crops in India has been delayed by at least two weeks because of the slow progress of monsoon rains in central and western parts of the country, raising concerns over lower production.

On the global front, Asian markets were trading mostly in green, as investors awaited the start of a closely-watched meeting by the US Federal Reserve, set to kick off later stateside. Back home, a report stated that the US government’s decision to withdraw trade benefits under the Generalised System of Preferences (GSP) is likely to impact the gems and jewellery exports the most.

The BSE Sensex is currently trading at 39050.21, up by 89.42 points or 0.23% after trading in a range of 38960.25 and 39146.03. There were 20 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.33%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were IT up by 0.70%, TECK up by 0.62%, Power up by 0.55%, Capital Goods up by 0.47% and Utilities was up by 0.41%, while Telecom down by 0.43%, Consumer Durables down by 0.36%, FMCG down by 0.19%, Energy down by 0.13% and Consumer Disc was down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were IndusInd Bank up by 1.98%, Vedanta up by 1.86%, Infosys up by 1.53%, Power Grid up by 1.52% and ICICI Bank was up by 1.17%. On the flip side, Asian Paints down by 1.70%, Maruti Suzuki down by 0.93%, Hindustan Unilever down by 0.86% and Tata Steel down by 0.74% and SBI was down by 0.52% were the top losers.

Meanwhile, expressing optimism over job generation, Niti Aayog CEO Amitabh Kant stated that circular economy has the potential to generate 1.4 crore jobs in next 5-7 years and create lakhs of new entrepreneurs. He added that sustainable development and resource circularity is the need of the hour to implement circular economy. Circular economy implies reusing waste back into the production cycle to produce new products and uses instead of wasting such materials with embedded resources.

He said that world population would reach 9.7 billion by 2050 of which 3 billion people would prosper to middle class consumption level. He noted that this would require 71 per cent more resources per capita, thereby raising total mineral and material demand from 50 billion tonnes in 2014 to 130 billion tonnes in 2050.

Kant also highlighted the need of promoting non-government organisations to spread awareness and developing circular economy as a national agenda. Resource efficiency is closely linked to the concept of circular economy which has gained prominence as a policy goal for sustainable development in recent years.

The CNX Nifty is currently trading at 11697.15, up by 25.00 points or 0.21% after trading in a range of 11662.80 and 11719.70. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.37%, IndusInd Bank up by 2.05%, Vedanta up by 1.68%, Power Grid up by 1.57% and Cipla was up by 1.53%. On the flip side, Indiabulls Housing down by 2.25%, Asian Paints down by 1.65%, Titan Company down by 1.23%, Hindalco down by 1.21% and Hindustan Unilever was down by 1.05% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 179.36 points or 0.66% to 27,406.52, Jakarta Composite soared 49.00 points or 0.79% to 6,239.53, Straits Times advanced 25.96 points or 0.81% to 3,233.95, Taiwan Weighted strengthened 14.55 points or 0.14% to 10,545.09, KOSPI rose 6.74 points or 0.32% to 2,097.47 and Shanghai Composite was up by 2.36 points or 0.08% to 2,889.98. On the other side; Nikkei 225 slipped 164.49 points or 0.78% to 20,959.51.