Benchmarks continue lackluster trade slightly in red

Indian equity benchmarks continued their lackluster trade slightly in red in afternoon session, tracking thin trade in global equities ahead of year-end holidays. Investors’ sentiments remain dented with International Monetary Fund’s report that India is now in the middle of a significant economic slowdown, urging the government to take immediate policy actions to tackle the current prolonged downturn. However, losses remain capped as some support came with PHDCCI President D K Aggarwal’s statement that the new criteria for definition of micro, small and medium enterprises (MSMEs) on the basis of turnover will help in promoting the ease of doing business as the process of identification and dealings with such entities will become simpler and faster. On the sectoral front, hospital sector remained in focus after Credit rating agency CRISIL in its latest report stating that profitability of India’s hospital sector would continue to improve in the current financial year (FY20) as well as next financial year (FY21) driven by enhanced coverage under Ayushman Bharat as well as deeper expansion in smaller towns.

On the global front, Asian markets were trading mixed as the holiday lull offset optimism that a U.S.-China trade deal will boost exports and corporate earnings. Back home, the BSE Sensex is currently trading at 41582.20, down by 60.46 points or 0.15% after trading in a range of 41572.66 and 41702.98. There were 17 stocks advancing against 12 stocks declining, while 2 stocks remain unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.05%, while Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Metal up by 0.89%, Consumer Durables up by 0.40%, Telecom up by 0.33%, Auto up by 0.31% and Basic Materials was up by 0.26%, while IT down by 0.62%, Energy down by 0.50%, TECK down by 0.45%, Capital Goods down by 0.21% and FMCG was down by 0.09% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 2.12%, ONGC up by 1.36%, Hero MotoCorp up by 0.93%, Sun Pharma up by 0.69% and Mahindra & Mahindra was up by 0.68%. On the flip side, HCL Tech down by 1.85%, Reliance Industries down by 0.90%, Infosys down by 0.56%, TCS down by 0.53% and Axis Bank was down by 0.51% were the top losers.

Meanwhile, Credit rating agency CRISIL in its latest report has said that profitability of India’s hospital sector would continue to improve in the current financial year (FY20) as well as next financial year (FY21). It noted that the improvement in demand will be driven by enhanced coverage under Ayushman Bharat, deeper expansion in smaller towns, alterations made to healthcare delivery models by hospital chains to align with regulatory changes as well as factors like increasing lifestyle diseases and medical tourism.

According to the report, preference for private hospitals is increasing with insurance coverage of Rs 5 lakh under the Ayushman Bharat scheme (up from Rs 1-3 lakh under various government schemes). It expects 60-70 percent of bed additions to come up in tier II locations in the next 2-3 fiscals. It added that currently, healthcare facilities are clustered around tier I cities such as Chennai, New Delhi, Bengaluru, Kolkata, and Mumbai.

The report further said that even as revenue growth is set to increase to 14-15 percent over fiscals 2020 and 2021, operating profitability of hospital firms is also expected to improve to 16 percent over this period. It noted that this will be supported by a rise in bed occupancy rates to 75 per cent from 60-65 per cent, automation and optimisation of clinical procedures, efficient sourcing, and continuing recalibration of pricing of services.

The CNX Nifty is currently trading at 12246.45, down by 16.30 points or 0.13% after trading in a range of 12244.05 and 12283.70. There were 29 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 4.23%, Indusind Bank up by 2.12%, Zee Entertainment up by 1.66%, JSW Steel up by 1.44% and ONGC was up by 1.32%. On the flip side, HCL Tech down by 1.83%, Reliance Industries down by 0.97%, Wipro down by 0.93%, Eicher Motors down by 0.89% and UPL was down by 0.77% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 9.47 points or 0.04% to 23,830.58, Shanghai Composite gained 17.20 points or 0.58% to 2,979.95 and Straits Times advanced 7.67 points or 0.24% to 3,221.67. On the flip side, Hang Seng decreased 42.20 points or 0.15% to 27,864.21, Taiwan Weighted dropped 45.85 points or 0.38% to 11,976.38 and KOSPI fell 13.63 points or 0.62% to 2,190.08.