Key indices keep head above water in early noon deals

Local equity benchmarks managed to keep their head above water in early noon deals with both Sensex and Nifty trading above 37,500 and 11,100 marks, respectively, despite growing uncertainty over US-China trade talks and unabated foreign fund outflows. Stocks from Telecom, Capital Goods and Basic Materials counters were supporting the markets, while those from IT, Consumer Durables and Teck counters were adding to the underlying cautious undertone. Traders were getting encouragement with report that the Indian economy needs a boost and a slip in the fiscal deficit by 40 to 50 basis points will be a good trade-off if it propels demand. However, gains remain limited with report that India has moved down 10 places to rank 68th on an annual global competitiveness index, largely due to improvements witnessed by several other economies, while Singapore has replaced the US as the world’s most competitive economy. Meanwhile, a private report stated that the government has identified hundreds of products including electronics, toys, blankets and several daily-use items for possible import substitution by discouraging their shipments into the country.

On the global front, Asian markets were trading in red due to waning optimism about Sino-US trade deal. The US imposed visa restrictions on Chinese officials and also expanded its trade blacklist to include some of China's top artificial intelligence firms, worsening market sentiments. Back on home turf, in scrip specific developments, shares of Jindal Steel & Power surged on reporting 16% rise in production in Q2FY20. Ashoka Buildcon gained on securing order from SRIT India.

The BSE Sensex is currently trading at 37576.58, up by 44.60 points or 0.12% after trading in a range of 37415.83 and 37663.12. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in mixed; the BSE Mid cap index rose 0.16%, while Small cap index was down by 0.09%.

The top gaining sectoral indices on the BSE were Telecom up by 1.40%, Capital Goods up by 1.11%, Basic Materials up by 0.83%, Power up by 0.72% and Utilities was up by 0.69%, while IT down by 1.28%, Consumer Durables down by 1.23%, TECK down by 0.92%, Realty down by 0.51% and Energy was down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.03%, Larsen & Toubro up by 1.68%, Bharti Airtel up by 1.42%, Indusind Bank up by 1.33% and Asian Paints was up by 1.19%. On the flip side, Yes Bank down by 7.79%, HCL Technologies down by 2.90%, Hero MotoCorp down by 1.73%, TCS down by 1.45% and ITC was down by 1.27% were the top losers.

Meanwhile, in line with the government’s aim to make India digital, the Reserve Bank of India (RBI) has directed all state/UT Level Bankers Committees (SLBCs/ UTLBCs) to identify one district in their respective states/ UTs on a pilot basis in consultation with banks and stakeholders, to expand digital payments ecosystem.

The Apex Bank further noted that the identified district shall be allotted to a bank having significant footprint which will endeavour to make the district 100 per cent digitally enabled within one year, in order to enable every individual in the district to make/ receive payments digitally in a safe, secure, quick, affordable and convenient manner. This will include providing the necessary infrastructure and literacy to handle such transactions.

As per the RBI, the SLBCs/UTLBCs should endeavour to ensure that to the extent possible, districts identified are converged with the 'Transformation of Aspirational Districts' program of the government. Besides, the RBI advised that SLBC/ UTLBC convenor banks need to monitor the progress made in this regard on a quarterly basis and report the same to concerned regional offices/ sub-offices of the Reserve Bank.

The CNX Nifty is currently trading at 11140.65, up by 14.25 points or 0.13% after trading in a range of 11090.15 and 11159.15. There were 29 stocks advancing against 20 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Ultratech Cement up by 3.91%, Mahindra & Mahindra up by 2.80%, Cipla up by 2.24%, Bharti Infratel up by 1.93% and Bharti Airtel was up by 1.83%. On the flip side, Yes Bank down by 7.78%, Titan Company down by 3.42%, HCL Technologies down by 2.83%, Zee Entertainment down by 1.87% and Hero MotoCorp was down by 1.77% were the top losers.

All Asian markets were trading in red; Taiwan Weighted dropped 111.85 points or 1.02% to 10,905.46, Straits Times trembled 19.44 points or 0.62% to 3,091.41, Nikkei 225 slipped 129.64 points or 0.6% to 21,458.14, Jakarta Composite lost 16.08 points or 0.27% to 6,023.52, Hang Seng decreased 189.26 points or 0.73% to 25,704.14 and Shanghai Composite was down by 1.13 points or 0.04% to 2,912.44.