Sensex, Nifty trade in green

Indian equity bourses were trading in green terrain in late afternoon session, despite weak cues from European markets. Market participants were seen taking support with reports that India’s Wholesale price index (WPI) inflation again fell to 0.16% in the month of October 2019 as against 0.33% for the previous month and 5.54% during the corresponding month of the previous year. The street paid no heed towards Moody's Investors Service report stating that it cut India's economic growth forecast for current year to 5.6 per cent from 5.8 per cent estimated earlier, saying GDP slowdown is lasting longer than previously expected. It expected economic activity to pick up in 2020 and 2021 to 6.6 per cent and 6.7 per cent, respectively, but the pace to remain lower than in the recent past.

On the global front, European market were trading in red, despite Germany's economy expanded modestly in the third quarter supported by consumption and, thus avoided entering a widely expected technical recession. Gross domestic product grew a seasonally and calendar adjusted 0.1 percent from the previous three months. Asian markets were also trading in red, as Japan's economy grew at the slowest pace in a year in the third quarter as trade wars and a weaker global economy hurt exports and private consumption slowed. Gross domestic product grew an annualized 0.2 percent quarterly following a revised 1.8 percent expansion in the second quarter.

The BSE Sensex is currently trading at 40229.17, up by 113.11 points or 0.28% after trading in a range of 40026.99 and 40348.61. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was up by 0.01%, while Small cap index was down by 0.10%.

The top gaining sectoral indices on the BSE were IT up by 1.14%, TECK up by 0.57%, Consumer Durables up by 0.49%, Auto up by 0.27% and Bankex up by 0.26%, while Telecom down by 3.24%, Metal down by 1.89%, Basic Materials down by 0.96%, Oil & Gas down by 0.87% and PSU down by 0.75% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.37%, ICICI Bank up by 2.13%, Bajaj Finance up by 1.42%, Maruti Suzuki up by 1.30% and Bajaj Auto up by 0.92%. On the flip side, Indusind Bank down by 3.14%, Vedanta down by 3.00%, Tata Motors - DVR down by 2.42%, Tata Motors down by 2.23% and Bharti Airtel down by 1.79% were the top losers.

Meanwhile, State Bank of India’s (SBI) Economic Research Department in its Ecowrap report has said that credit growth picked up rapid pace beginning September 2019 - jumping by Rs 1.08 lakh crore - mainly helped by housing, NBFC and lately MSME. The report further said the week up to Diwali has shown an increase in currency in circulation of Rs 30,871 crore from the previous week, thereby showing that people have been demanding cash in the festive season.

It mentioned that the sectoral data for the month of September 2019, indicates that for the first time in current fiscal credit to industry turned positive and jumped by Rs 9,700 crore, of which Rs 8,200 crore is attributable to MSME sector. The report highlighted, in September, the jump in retail credit at Rs 51,900 crore was nearly double that of August, of which housing loans jumped by 2.6 times.

Bank lending to NBFC sector has remained robust and the YTD growth of such is highest across all segments at 11.3 per cent. Besides, it said ‘we are less hopeful of a growth pick up in second quarter 2019-20. Out of 26 indicators, only 5 indicators were showing acceleration in September. This indicates the extend of demand slowdown in the economy is still significant and would take longer time to recover.’

The CNX Nifty is currently trading at 11860.05, up by 19.60 points or 0.17% after trading in a range of 11802.65 and 11895.65. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.48%, ICICI Bank up by 2.23%, Bajaj Finance up by 1.54%, Maruti Suzuki up by 1.33% and BPCL up by 1.08%. On the flip side, Bharti Infratel down by 5.68%, Zee Entertainment down by 3.15%, GAIL India down by 3.15%, Indusind Bank down by 3.07% and Vedanta down by 2.83% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 235.63 points or 0.89% to 26,335.83, Nikkei 225 slipped 178.32 points or 0.76% to 23,141.55, Jakarta Composite lost 68.80 points or 1.12% to 6,073.70, Taiwan Weighted dropped 17.41 points or 0.15% to 11,450.42 and Straits Times was down by 8.14 points or 0.25% to 3,231.08. On the flip side, KOSPI rose 8.50 points or 0.4% to 2,130.95 and Shanghai Composite was up by 9.90 points or 0.34% to 2,915.14.

All European markets were trading in red; FTSE lost 26.65 points or 0.36% to 7,324.56, CAC fell 8.47 points or 0.14% to 5,898.62 and DAX was down by 59.88 points or 0.45% to 13,170.19.