Markets continue to trade in green in early noon session

Indian equity markets continued to trade in green in early noon session with Sensex up by 143.43 points. Sentiments got boost with NITI Aayog vice chairman Rajiv Kumar’s statement that the government expects economy to grow by 6.5% in the current fiscal and that all efforts were focused on bringing India to a higher growth trajectory. Some support also came in with India Inc stating that the reduction in key policy rate by the RBI is expected to revive investment and encourage consumption, thereby kick-starting the sluggish economy. Meanwhile, finance ministry will kick-start the exercise to prepare annual Budget for 2020-21 from October 14 which, among other thing, will have to address critical issues pertaining to slowdown in growth and subdued revenue collection. However, broader indices, BSE Mid cap and Small cap were showing negative trend.

On the global front, Most of the Asian markets were trading in green as US unemployment rate dropped to the lowest in almost 50 years, easing concerns of a slowdown in the world's largest economy. Back home, banking stocks remained in focus with report that Reserve Bank of India (RBI) Governor Shaktikanta Das tried to assuage fears about the banking sector, reeling from one crisis after another, by claiming that it was sound and stable.

The BSE Sensex is currently trading at 37816.74, up by 143.43 points or 0.38% after trading in a range of 37534.54 and 37919.47. There were 14 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.29%, while Small cap index was down by 0.35%.

The few gaining sectoral indices on the BSE were Bankex up by 1.12%, Telecom up by 0.97%, Consumer Durables up by 0.48% and FMCG was up by 0.36%, while Healthcare down by 1.49%, PSU down by 1.42%, Oil & Gas down by 1.33%, Power down by 1.04%, Utilities down by 1.01% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.56%, HDFC Bank up by 2.03%, Kotak Mahindra Bank up by 1.66%, Bharti Airtel up by 1.30% and ICICI Bank up by 1.27%. On the flip side, Sun Pharma down by 2.27%, Mahindra & Mahindra down by 2.25%, NTPC down by 2.00%, ONGC down by 1.85% and Tata Motors - DVR down by 1.49% were the top losers.

Meanwhile, India Inc has said the reduction in key lending rate by 25 basis points by the Reserve Bank of India (RBI) is likely to revive investment and encourage consumption, thereby kick-starting the sluggish economy. It emphasized that it was now critical for banks to facilitate a faster transmission of rate cuts to ensure that the measures reap results.

Confederation of Indian Industry (CII) Director General Chandrajit Banerjee has said that the cumulative 135 basis points rate cuts this year coupled with a slew of measures announced by the government to provide growth stimulus to a variety of sectors is expected to lift growth from its current stupor and unleash animal spirits.

According to the PHD Chamber of Commerce and Industry President D K Aggarwal, repo rate cut will help induce demand and refuel economic growth in coming quarters. However, Exporters body Federation of Indian Export Organisations’ (FIEO) President Sharad Saraf, said the challenges in exports will continue and may aggravate with geo-political situation.

The CNX Nifty is currently trading at 11187.75, up by 13.00 points or 0.12% after trading in a range of 11117.85 and 11233.85. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Britannia up by 3.33%, Yes Bank up by 3.32%, HDFC Bank up by 1.65%, Kotak Mahindra Bank up by 1.33% and Bharti Airtel up by 1.28%. On the flip side, BPCL down by 4.02%, Zee Entertainment down by 3.93%, Mahindra & Mahindra down by 2.35%, Ultratech Cement down by 2.34% and Sun Pharma down by 2.28% were the top losers.

Asian markets were mostly trading in green; KOSPI rose 1.46 points or 0.07% to 2,022.15, Straits Times advanced 19.29 points or 0.63% to 3,097.65 and Taiwan Weighted strengthened 30.45 points or 0.28% to 10,924.93. On the flip side, Nikkei 225 slipped 43.59 points or 0.2% to 21,366.61 and Jakarta Composite was down by 30.24 points or 0.5% to 6,031.01.