Markets turn green in early noon deals

Local equity benchmarks erased all losses to turn positive in early noon session, both Sensex and Nifty were trading above 38,700 and 11,500 marks, respectively. Buying in frontline stocks such as HDFC, HDFC Bank and Tata Motors - DVR were aiding sentiments, while selling in Indusind Bank, Bharti Airtel and TCS kept the gains in the markets in check. Some comfort came in the markets with RBI’s report that lower crude prices and higher invisible receipts have helped the country narrow the current account deficit to 2% of GDP or at $14.3 billion in the first quarter, down 30 basis points from year-ago. Sentiment also got a boost with a report that the government indicated its maiden offshore bonds issuance might not materialise this fiscal but stuck to its budgeted gross market borrowing target and the fiscal glide path, despite projecting gross revenue forgone of Rs 1.45 lakh crore due to a sharp cut in the corporate tax rates. However, gains remain limited as the growth in India's manufacturing sector remained weak in September and forward looking indicators in a private business survey suggest the country's wobbly economy is unlikely to start recovering anytime soon.

On the global front, Asian markets were trading mostly higher, as investors clung to hopes that China and the US could work towards reaching a deal on trade and other issues in the fourth quarter. Back on street, in scrip specific development, shares of Anuh Pharma gained on getting EuGMP Certificate from Spanish Health Authority for five products. Meanwhile, the monthly sales numbers for the auto companies have started trickling in, as Maruti Suzuki India has reported total sales of 122,640 units in September 2019, as compared 162,290 units in September 2018, registering fall of 24.4%.

The BSE Sensex is currently trading at 38777.32, up by 109.99 points or 0.28% after trading in a range of 38434.25 and 38923.78. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.14%, while Small cap index was down by 0.39%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.34%, Consumer Durables up by 1.03%, Auto up by 0.74%, Energy up by 0.62% and PSU was up by 0.40%, while Telecom down by 2.20%, Realty down by 1.36%, TECK down by 1.25%, IT down by 1.12% and Metal was down by 0.86% were the losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.15%, HDFC Bank up by 1.64%, Tata Motors - DVR up by 1.60%, Mahindra & Mahindra up by 1.57% and Maruti Suzuki was up by 1.51%. On the flip side, Indusind Bank down by 4.54%, Bharti Airtel down by 2.42%, TCS down by 1.84%, HCL Technologies down by 1.42% and Tata Steel was down by 1.40% were the top losers.

Meanwhile, The growth of eight core infrastructure industries contracted to over three-and-half year low of 0.5% in August 2019, as compared to same period of last year, due to decline in output of coal, crude oil, natural gas, cement, and electricity. It had expanded by 4.7% in August last year. According to data released by the ministry of Commerce and Industry, the combined Index of eight core industries stood at 128.2 in August, 2019, which was 0.5% lower compared to the index of August, 2018. Its cumulative growth during April to August, 2019-20 was 2.4%. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).    

Among eight core sectors, Coal production having 10.33% weight declined 8.6% in August, 2019 over August, 2018, and its cumulative index decreased by 0.2% during April to August, 2019-20 over corresponding period of the previous year.  Petroleum Refinery production having 28.04% weight increased 2.6% in August, 2019 over August, 2018, while its cumulative index dropped by 1.1% during April to August, 2019-20 over the corresponding period of previous year.  

The Natural Gas production having 6.88% weight declined by 3.9 percent in August, 2019 over August, 2018, and its cumulative index was down by 1.5% during April to August, 2019-20 over the corresponding period of previous year. Steel production having 17.92% weight increased by 5.0% in August, 2019 over August, 2018 and its cumulative index surged by 9.7% during April to August, 2019-20 over the corresponding period of previous year. Electricity generation having 19.85% weight fell by 2.9% in August, 2019 over August, 2018 while its cumulative index increased by 4.6% during April to August, 2019-20 over the corresponding period of previous year.

Cement production having 5.37% weight declined by 4.9% in August, 2019 over August, 2018 while its cumulative index increased by 1.3% during April to August, 2019-20 over the corresponding period of previous year. Fertilizer production having 2.63% weight surged by 2.9% in August, 2019 over August, 2018, and, its cumulative index declined by 0.3% during April to August, 2019-20 over the corresponding period of previous year. Crude Oil production having 8.98% weight declined by 8.6% in August, 2019 over August, 2018 and its cumulative index fell by 0.2% during April to August, 2019-20 over the corresponding period of previous year. 

The CNX Nifty is currently trading at 11501.60, up by 27.15 points or 0.24% after trading in a range of 11406.50 and 11554.20. There were 24 stocks advancing against 25 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were BPCL up by 5.72%, HDFC up by 2.01%, Mahindra & Mahindra up by 1.74%, HDFC Bank up by 1.57% and Indian Oil Corporation was up by 1.56%. On the flip side, Indusind Bank down by 4.84%, Bharti Airtel down by 2.44%, Grasim Industries down by 2.06%, Cipla down by 1.95% and Coal India was down by 1.90% were the top losers.

Asian markets were trading mostly higher, KOSPI rose 6.42 points or 0.31% to 2,069.47, Nikkei 225 surged 144.44 points or 0.66% to 21,900.28, Taiwan Weighted strengthened 137.97 points or 1.27% to 10,967.65 and Straits Times was up by 28.64 points or 0.92% to 3,148.63. On the flip side, Jakarta Composite was down by 13.64 points or 0.22% to 6,155.46.