Local equities trading flat with positive bias

Local equity markets were trading flat with a positive bias in morning session, amid sustained foreign fund inflows. Traders were seen piling positions in FMCG, Consumer Disc and Consumer Durables sector, while selling was witnessed in Metal, Telecom and Basic Materials sector stocks. Traders found some comfort with a report that foreign institutional investors (FIIs) continued to be net buyers in the capital market, infusing Rs 686.33 crore on October 16, and domestic institutional investors bought shares worth Rs 1,576.73 crore. Some support also came with Union Finance Minister Nirmala Sitharaman’s statement that investors can find no better place in the world than India that has a democracy loving and capitalist respecting environment. However, further upside remain capped with a report that the Securities and Exchange Board of India (SEBI) is planning to further tighten rules for participatory notes (P-notes), offshore derivative instruments issued by brokers to foreign investors not registered in the country.

On the global front, Asian markets were trading mixed amid a report that there’s still a ways to go before the US and China finalize a ‘phase one’ limited trade deal. Back on the domestic turf,  Steel Industry stocks were in focus as India has imposed a provisional $29-$200 a tonne anti-dumping duty to rein in burgeoning and predatory imports of galvalume steel products from China, Vietnam and Korea which were causing material injury to the domestic industry.

The BSE Sensex is currently trading at 38678.55, up by 79.56 points or 0.21% after trading in a range of 38557.43 and 38702.89. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.52%, while Small cap index was up by 0.25%.

The top gaining sectoral indices on the BSE were FMCG up by 0.68%, Consumer Disc up by 0.51%, Consumer Durables up by 0.45%, Auto up by 0.43% and Capital Goods was up by 0.39%, while Metal down by 1.02%, Telecom down by 0.70%, Basic Materials down by 0.69%, IT down by 0.34% and TECK was down by 0.33% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 1.17%, Axis Bank up by 1.04%, Asian Paints up by 0.87%, Mahindra & Mahindra up by 0.85% and Bajaj Finance was up by 0.78%. On the flip side, Vedanta down by 2.14%, TCS down by 1.70%, Tata Steel down by 1.28%, Tech Mahindra down by 1.07% and HCL Tech was down by 1.03% were the top losers.

Meanwhile, amid concerns over the limited availability of spectrum in the mid frequency bands marked for 5G services, Telecom Secretary Anshu Prakash has said that the Telecom Department (DoT) is trying to get more spectrum free in the 3.3-3.6 Ghz band for 5G services. With the defence and the space departments claiming frequencies in the 3.3-3.6 Ghz band, which has been recommended for 5G services by the regulator Telecom Regulatory Authority of India (Trai), around 175 Mhz of radio waves have been left free for mobile services.

Prakash said the government is looking at all aspects to make spectrum auction suitable for industry. He asid ‘we are looking at all aspects. Reforms could be in terms of the number of instalments, rate of interest. What we have received is the pricing from the Trai.’ Besides, he also said that spectrum in the 26 Ghz band, which is likely to be finalised by UN body International Telecommunications Union (ITU) for 5G, will not be a part of the upcoming auction this financial year. The 26 Ghz band is the core band for 5G globally and will be cost-effective for rolling out networks

The DoT has informed the ITU that India will primarily use spectrum in the 26 Ghz band for satellite services on the demand of space agency ISRO. The department has submitted a proposal to the ITU for allowing the use of 26 Ghz band for mobile services with conditions that 5G services will not interfere with satellite operations.

The CNX Nifty is currently trading at 11475.20, up by 11.20 points or 0.10% after trading in a range of 11439.65 and 11480.90. There were 23 stocks advancing against 25 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Eicher Motors up by 3.96%, Britannia up by 2.07%, Zee Entertainment up by 1.46%, Coal India up by 1.41% and Bajaj Finserv was up by 1.26%. On the flip side, Vedanta down by 2.40%, Hindalco down by 2.00%, JSW Steel down by 1.86%, TCS down by 1.80% and Tata Steel was down by 1.21% were the top losers.

Asian markets were trading mixed, Hang Seng increased 198.52 points or 0.74% to 26,862.80, Nikkei 225 surged 24.14 points or 0.11% to 22,497.06, Jakarta Composite soared 7.99 points or 0.13% to 6,177.58 and Shanghai Composite was up by 0.14 points to 2,978.85.

On the other hand, Taiwan Weighted dropped 3.55 points or 0.03% to 11,159.28, Straits Times trembled 7.34 points or 0.23% to 3,127.37 and KOSPI was down by 8.53 points or 0.41% to 2,074.30.