Local equities rebound in positive territory

Subsequent to a flat-to-negative opening, local equity markets rebounded in positive territory and currently trading higher amid alternate bouts of buying-selling. Gains in IT and Consumer Durables shares provided some support, however losses in Realty, Industrials and Oil & Gas stocks pulled the markets. Sentiments turned positive with Union Minister Nitin Gadkari’s statement that the government will soon make changes to the definition of a micro, small and medium enterprise and hoped to generate five crore jobs in the MSME sector in five years. Traders took note of a private report that India's oil imports fell to their lowest in more than three years in September to 3.82 million barrels per day (bpd), as some refiners cut purchases due to shutdowns for maintenance and fuel upgrades. However, further upside remain capped with Global rating agency Fitch’s report that Banks would face a capital shortfall of about $50 billion (about Rs 3.5 lakh crore) in the event of a systemic crisis in the non-banking financial company (NBFC) sector. The stress test examines the potential impact on banks of liquidity pressures in the NBFC sector developing into widespread failures.

On the global front, Asian markets were trading mostly in red, after British lawmakers rejected the government`s timetable to fast-track legislation for its deal to take Britain out of the European Union. Back home, in the scrip specific development, Bharti Airtel gained as its arm partners with Finablr for international money remittances. Besides, Oriental Bank of Commerce surged on reporting 24% rise in Q2 net profit at Rs 125.90 crore.

The BSE Sensex is currently trading at 39098.14, up by 134.30 points or 0.34% after trading in a range of 38866.08 and 39148.97. There were 17 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.11%, while Small cap index was up by 0.41%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.20%, IT up by 0.94%, TECK up by 0.75%, Power up by 0.63% and PSU was up by 0.56%, while Realty down by 0.41%, Industrials down by 0.32%, Capital Goods down by 0.24%, Oil & Gas down by 0.18% and Metal was down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were HCL Tech up by 2.29%, SBI up by 2.18%, Tech Mahindra up by 1.98%, Axis Bank up by 1.30% and Hero MotoCorp was up by 1.12%. On the flip side, IndusInd Bank down by 1.06%, Kotak Mahindra Bank down by 0.90%, Mahindra & Mahindra down by 0.83%, Tata Motors down by 0.72% and Hindustan Unilever was down by 0.71% were the top losers.

Meanwhile, in order to support foreign investors, who want to invest in India, the Department for Promotion of Industry and Internal Trade (DPIIT) is planning to set up a single window system. The single-window system may have representatives from both the Centre and state governments. The system will help in getting all relevant approvals and clearances required by foreign investors.

DPIIT Secretary Guruprasad Mohapatra has said that the proposal was being sent to Commerce and Industry Minister Piyush Goyal for approval. Mohapatra said the new mechanism will help in all approvals and clearances that a company requires to set up a plant in a state, district or town.

Besides, the government is taking a series of steps to attract foreign direct investment (FDI). It has liberalised norms in several sectors such as single brand retail trading, coal mining, insurance and contract manufacturing. DPIIT is also looking to further liberalise FDI norms and they are holding internal meetings with different ministries in this regard. FDI in the country has increased by 28% to $16.3 billion during April-June this fiscal.

The CNX Nifty is currently trading at 11625.55, up by 37.20 points or 0.32% after trading in a range of 11554.40 and 11638.80. There were 29 stocks advancing against 20 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were Bajaj Finserv up by 2.57%, HCL Tech up by 2.33%, Eicher Motors up by 2.23%, SBI up by 2.18% and Tech Mahindra was up by 1.99%. On the flip side, Adani Ports down by 4.80%, Zee Entertainment down by 1.72%, Grasim Industries down by 1.58%, IndusInd Bank down by 1.14% and Kotak Mahindra Bank was down by 0.92% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 243.33 points or 0.91% to 26,542.87, Taiwan Weighted dropped 51.07 points or 0.45% to 11,220.18, Straits Times trembled 20.65 points or 0.65% to 3,140.02, KOSPI fell 11.02 points or 0.53% to 2,077.84, Shanghai Composite declined 9.02 points or 0.31% to 2,945.36 and Jakarta Composite lost 2.80 points or 0.04% to 6,222.70. On the other hand, Nikkei 225 surged 24.40 points or 0.11% to 22,573.30.