Indian bourses trade marginally higher in afternoon deals

Indian equity indices, altering between positive and negative territory, were now trading marginally higher in afternoon session, amid positive global cues and sustained foreign fund inflow. Traders took some support with the finance ministry stating that public sector banks (PSBs) have extended support of Rs 2.56 lakh crore to NBFCs by way of credit and pooled buyout since September 2018 as part of efforts to provide much-needed liquidity to the sector. However, gains remain capped as anxiety remained among the local traders with a monthly survey showing that manufacturing activity in the country continued to weaken in October, with factory orders and production rising at the weakest rates in two years. The headline seasonally adjusted IHS Markit India Manufacturing Purchasing Managers' Index (PMI) fell to a two-year low of 50.6 in October from 51.4 in September. Some concern also came with data released by the Centre for Monitoring Indian Economy (CMIE) indicating that India's unemployment rate in October rose to 8.5%, the highest since August 2016, and up from 7.2% in September, reflecting the impact of a slowdown in the economy.

On the global front, Asian market were mostly trading in green, as a surprise bounce in Chinese manufacturing activity eclipsed doubts raised by a report over whether the United States and China can reach a long-term trade deal. Back home, the BSE Sensex is currently trading at 40197.37, up by 68.32 points or 0.17% after trading in a range of 40014.23 and 40283.30. There were 19 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.55%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Realty up by 1.43%, Telecom up by 1.16%, Bankex up by 0.89%, Basic Materials up by 0.68% and Healthcare was up by 0.62%, while Energy down by 1.07%, Consumer Durables down by 1.01%, Oil & Gas down by 0.80%, IT down by 0.54% and TECK was down by 0.15% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.66%, Bajaj Finance up by 1.75%, Tata Steel up by 1.54%, Tech Mahindra up by 1.49% and Axis Bank was up by 1.39%. On the flip side, Yes Bank down by 3.19%, TCS down by 2.42%, Mahindra & Mahindra down by 1.83%, Asian Paints down by 1.41% and Reliance Industries was down by 1.14% were the top losers.

Meanwhile, dented by weak growth of both factory orders and production, India's manufacturing activity slowed down in the month of October. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance –slipped to a two-year low of 50.6 in October from 51.4 in September.

The survey report found that output expanded at the slowest rate in two years, on the back of subdued market demand along with competitive pressures. Besides, sales increased for the twenty-fourth consecutive month, but the upturn was the slowest over this period. Business confidence also got hit by challenging market conditions coupled with delayed client payment in October.

On the price front, lower demand for raw materials and semi-finished items led to a fall in overall cost burdens, the first in over four years. However, the decrease in input costs was fractional overall. Conversely, selling prices continued to increase in October. Although slight, the rate of charge inflation was at a seven-month high.

Further, unfinished business increased further in the reported month, amid reports of delays in the receipt of payment from clients. The rise in backlogs was the fastest since March, albeit marginal overall. As for supply chains, there was a marginal increase in lead times for inputs. However, the deterioration in vendor performance was similar to the fractional pace recorded in September.

The CNX Nifty is currently trading at 11891.05, up by 13.60 points or 0.11% after trading in a range of 11843.35 and 11918.30. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 9.27%, Bharti Infratel up by 5.46%, Indusind Bank up by 4.39%, Bajaj Finserv up by 3.32% and JSW Steel was up by 2.13%. On the flip side, Yes Bank down by 2.84%, Indian Oil Corp. down by 2.69%, TCS down by 2.45%, Titan Co down by 2.16% and Mahindra & Mahindra was down by 1.91% were the top losers.

Asian market were mostly trading in green; Hang Seng increased 161.12 points or 0.6% to 27,067.84, Taiwan Weighted strengthened 40.82 points or 0.36% to 11,399.53, Shanghai Composite gained 26.67 points or 0.91% to 2,955.73, KOSPI rose 16.72 points or 0.8% to 2,100.20 and Straits Times was up by 1.02 points or 0.03% to 3,230.90.

On the global front, Jakarta Composite lost 23.74 points or 0.38% to 6,204.58 and Nikkei 225 was down by 76.27 points or 0.33% to 22,850.77.