Sensex, Nifty continue to trade in positive terrain

Indian stock markets continued to trade in positive terrain in the early noon session due to buying in Realty, Oil & Gas and PSU stocks. Buying in frontline stocks such as Bajaj Finance, ICICI Bank and Bajaj Auto were aiding sentiment, while selling in Vedanta, Hero MotoCorp and Power Grid Corporation kept the gains in the markets in check. Traders were getting encouragement with World Bank’s report that India has halved its poverty rate since the 1990s and achieved a seven plus growth rate over the last 15 years. India is both critical to the success of global development efforts, including eliminating extreme poverty, and as an influential leader for global goods. However, upside remain limited as IMF in its latest World Economic Outlook report has revised India's Gross Domestic Product (GDP) growth projection to 6.1% for the year 2019, which is 1.2% lower from its April projections of 7.3%. Meanwhile, according to private report Finance Minister Nirmala Sitharaman stated that India wants to comply with global sanctions, including U.S. sanctions on Venezuela and Russia, but also needs to maintain its own strength and strategic interests.

On the global front, Asian markets were trading mostly higher, following better than expected earnings results from major US companies. Moreover, optimism about a possible Brexit deal boosted investors’ sentiment. Back on street, in scrip specific developments, shares of MCX gained after the company’s consolidated net profit doubled to Rs 72 crore in September quarter (Q2FY20), on the back of higher turnover. It had posted profit of Rs 36 crore in the year-ago quarter. Besides, Bajaj Consumer Care surged after Mutual Funds-led institutional investors bought more than 20 per cent stake from the promoters of the personal products company.

The BSE Sensex is currently trading at 38602.61, up by 96.52 points or 0.25% after trading in a range of 38466.76 and 38666.38. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.07%, while Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were Realty up by 1.35%, Oil & Gas up by 0.81%, PSU up by 0.81%, Energy up by 0.74% and Bankex up by 0.67%, while Utilities down by 0.72%, Power down by 0.47%, Metal down by 0.36%, Auto down by 0.27% and Consumer Durables was down by 0.11% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.77%, ICICI Bank up by 1.52%, Bajaj Auto up by 1.18%, HDFC up by 1.08% and SBI was up by 1.01%. On the flip side, Vedanta down by 2.28%, Hero MotoCorp down by 1.66%, Power Grid Corporation down by 1.17%, ITC down by 1.01% and Mahindra & Mahindra was down by 0.99% were the top losers.

Meanwhile, continuing its losing streak for the second straight month, India’s merchandise exports dropped by 6.57% in September 2019 as compared to same period of last year, on the back of significant dip in shipments from key sectors like petroleum, engineering, leather, chemicals, and gems & jewellery. Trade deficit, gap between imports and exports, narrowed to a seven-month low of $10.86 billion in September from $14.95 billion a year ago.  

As per the data released by the Commerce Ministry, merchandise exports fell by 6.57% to $26.03 billion in September 2019, as compared to $27.87 billion in the same month a year ago. In Rupee terms, it was down by 7.71% to Rs 1,85,710.81 crore in September 2019, as compared to Rs 2,01,234.95 crore in September 2018. Cumulative value of exports for the period April- September 2019-20 was $159.57 billion as against $163.48 billion during the period April- September 2018-19, registering a negative growth of 2.39%. In Rupee terms, it was down by 0.42% to Rs 11,16,766.77 crore from Rs 11,21,474.97 crore. 

Non-petroleum and Non Gems and Jewellery exports in September 2019 were $19 billion, as compared to $19.84 billion in September 2018, exhibiting a negative growth of 4.20%.  Non-petroleum and Non Gems and Jewellery exports in April- September 2019-20 were $118.41 billion, as compared to $119.01 billion for the corresponding period in 2018-19, a decrease of 0.50%.     

The CNX Nifty is currently trading at 11459.25, up by 30.95 points or 0.27% after trading in a range of 11423.70 and 11481.05. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were BPCL up by 4.57%, Zee Entertainment up by 4.49%, Grasim Industries up by 3.47%, Bajaj Finance up by 2.82% and Wipro was up by 2.09%. On the flip side, Vedanta down by 2.31%, Hindalco down by 2.16%, Adani Ports &Special down by 1.80%, Hero MotoCorp down by 1.67% and Cipla was down by 1.34% were the top losers.

Asian markets were trading mostly in green, Straits Times advanced 19.59 points or 0.63% to 3,135.76, Hang Seng increased 94.12 points or 0.36% to 26,598.05, KOSPI rose 12.64 points or 0.61% to 2,080.81, Taiwan Weighted strengthened 43.70 points or 0.39% to 11,155.50, Nikkei 225 was up by 267.39 points or 1.2% to 22,474.60. On the other hand, Jakarta Composite lost 9.43 points or 0.15% to 6,148.74 and Shanghai Composite was down by 6.77 points or 0.23% to 2,984.28.