Local equities trade flat to positive

Local equity markets were trading flat to positive, led by gains in some Energy and IT stocks as investors awaited the retail inflation data due later in the day. Some pessimism came with a survey report that a majority of Indians are of the opinion that the country is headed in the right direction despite plummeting GDP numbers, prolonged economic slowdown and unemployment. Investors remained jittery with SBI’s research report which highlighted that India’s GDP growth is expected to fall further in the second quarter after touching a six-year low in the first quarter of FY20. Investors maintained cautious approach as a monthly survey report showed that Industrial production in September contracted 4.3%, the sharpest decline since October 2011 spanning both the 2004-05 and 2011-12 series. Besides, a private report stated that India’s July-September quarter Gross Domestic Product (GDP) data, scheduled for a release on November 29, will be important as headline growth has already slipped to a six-year low.

On the global turf, Asian peers were trading lower as growing worries that US-China trade talks are stalling and concern about intensifying unrest in Hong Kong hurt demand for risky assets. Back home, on the sectoral front, power stock remain in focus, as Power and New & Renewable Energy Minister R K Singh exuded confidence that India will have over 200 GW of renewable energy capacity by 2022. India has set an ambitious target of having 175 GW of renewable energy capacity by 2022.

The BSE Sensex is currently trading at 40369.04, up by 23.96 points or 0.06% after trading in a range of 40279.11 and 40447.17. There were 15 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.13%, while Small cap index was down by 0.41%.

The top gaining sectoral indices on the BSE were Energy up by 1.27%, IT up by 0.70%, Metal up by 0.53%, TECK up by 0.40% and Consumer Durables was up by 0.32%, while Capital Goods down by 0.67%, Telecom down by 0.58%, PSU down by 0.54%, BANKEX down by 0.54% and Industrials was down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.08%, Reliance Industries up by 2.09%, Tata Steel up by 1.38%, HCL Tech up by 0.61% and Power Grid was up by 0.42%. On the flip side, SBI down by 1.34%, Infosys down by 1.03%, ITC down by 0.94%, Axis Bank down by 0.79% and ICICI Bank was down by 0.78% were the top losers.

Meanwhile, economic think tank, the National Council of Applied Economic Research (NCAER) in its latest survey has said its Business Confidence Index (BCI), an indicator of business sentiment across Indian industry, stood at 103.1 in the second quarter of current financial year (Q2FY20), falling 15.3 per cent quarter-on-quarter, despite a small reprieve in July 2019. Business confidence across the industry declined on account of an all-pervasive worsening of business sentiment.

The BCI fell 22.5 per cent during the Q2FY20, as compared to the year-ago period. This is based on the 110th Round of the Business Expectations Survey (BES) carried out by NCAER. It mentioned that the numbers suggest a deep and all-pervasive worsening of business sentiments.

All five sectors covered by NCAER's BES -- consumer non-durables, consumer durables, intermediate goods, capital goods and services -- showed a deterioration of business sentiment. The BCI of each of the sectors registered double-digit decline of 11.4 per cent, 11.4 per cent, 21.4 per cent, 18.3 per cent and 13.1 per cent, respectively in September quarter as against the previous three months.

The CNX Nifty is currently trading at 11921.85, up by 8.40 points or 0.07% after trading in a range of 11895.45 and 11946.80. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Britannia up by 5.25%, TCS up by 3.19%, Reliance Industries up by 2.09%, Tata Steel up by 1.31% and Nestle was up by 1.07%. On the flip side, GAIL India down by 2.95%, Zee Entertainment down by 2.82%, SBI down by 1.37%, Adani Ports down by 1.30% and Dr. Reddys Lab was down by 1.27% were the top losers.

All Asian markets were trading lower, Hang Seng decreased 535.17 points or 1.98% to 26,530.11, Nikkei 225 slipped 212.12 points or 0.9% to 23,307.89, Taiwan Weighted dropped 47.97 points or 0.42% to 11,472.40, Jakarta Composite lost 20.45 points or 0.33% to 6,160.54, Straits Times trembled 20.06 points or 0.61% to 3,247.74, KOSPI fell 19.94 points or 0.93% to 2,120.98 and Shanghai Composite was down by 4.27 points or 0.15% to 2,910.55.