Sensex, Nifty hold gains in late morning deals

Indian equity benchmarks were holding gains in late morning session, despite negative cues from other Asian markets. In line with the larger peers, the broader indices were too trading in green terrain. Domestic sentiments were positive, after industry body CII urged the government to extend the export incentive scheme MEIS till December 31 in its present form to help exporters. CII also suggested that the ambit of coverage under the Emergency Credit Line Guarantee Scheme (ECGLS) should be extended to the extent of any unutilised amount for revival of stressed sectors, including civil aviation, hospitality and tourism. These suggestions, among others, were made by the chamber during a meeting with Niti Aayog.

On the global front, Asian markets were trading mostly in red, after the manufacturing sector in Japan continued to contract in September, albeit at a barely slower pace, the latest survey from Jibun Bank revealed on Wednesday with a manufacturing PMI score of 47.3. That's up marginally from 47.2 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. Individually, production and new orders fell markedly again, although the rate of job shedding was the softest in four months. Business confidence rose to its strongest level in more than two years.

The BSE Sensex is currently trading at 37932.44, up by 198.36 points or 0.53% after trading in a range of 37850.65 and 38140.07. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.27%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Realty up by 1.69%, Energy up by 1.44%, IT up by 0.99%, Consumer Discretionary up by 0.98% and Auto up by 0.84%, while Telecom down by 5.91%, Power down by 1.46%, Utilities down by 1.01%, PSU down by 0.66% and Oil & Gas down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.37%, HCL Tech up by 2.28%, Reliance Industries up by 1.87%, Maruti Suzuki up by 1.47% and HDFC Bank up by 1.30%. On the flip side, Bharti Airtel down by 6.81%, Tata Steel down by 2.78%, NTPC down by 2.56%, Indusind Bank down by 1.75% and ONGC down by 1.73% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said India is not in a position to accept the concept of Data Free Flow with Trust (DFFT) as it is neither well understood nor is comprehensive enough in the legislation of many countries. He said that in view of the huge digital divide among countries, there is a need for policy space for developing countries which still have to finalise laws around digital trade and data. He also said data is a potent tool for development, and equitable access of data is a critical aspect for India.

Like many other developing countries, he said India is still in the phase of preparing a framework for its data protection and e-commerce laws. he added that ‘the existing regulations on which DFFT is sought to be premised, such as uninhibited cross border flow of data, are grossly inadequate to address our concerns on data access’. He noted that this could further aggravate the digital divide. He said that India, along with some other G-20 members, did not participate in the Osaka track last year due to its reservations.

On the issue of multilateral trading system, Goyal said it must be fair, transparent and balanced. He said reforms must preserve fundamental principles like non-discrimination, inclusiveness, recognition of special and differential treatment, and consensus based decision making. He said ‘we must recognise that WTO (World Trade Organisation) is a member led organisation, and the G-20 must not seem to be intrusive and driving the agenda for the multilateral trading system. Rather, our priority should be to correct the asymmetry and imbalance in the existing trading system’. Further, it is important to recognise the important role of small retailers in sustaining food chains and essential supplies to help sustain lives and economic activity through the COVID-19 pandemic and in future.

The CNX Nifty is currently trading at 11200.45, up by 46.80 points or 0.42% after trading in a range of 11184.60 and 11259.55. There were 26 stocks advancing against 23 stocks declining, while 1 stock remain unchanged on the index.

The top gainers on Nifty were HCL Tech up by 2.72%, Infosys up by 2.32%, Wipro up by 2.16%, Reliance Industries up by 1.77% and Eicher Motors up by 1.68%. On the flip side, Bharti Airtel down by 7.34%, Bharti Infratel down by 4.46%, Zee Entertainment down by 3.02%, Tata Steel down by 2.97% and NTPC down by 2.51% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 107.69 points or 0.46% to 23,252.61, Taiwan Weighted dropped 54.91 points or 0.43% to 12,590.60, Jakarta Composite lost 32.44 points or 0.66% to 4,901.65, Hang Seng decreased 2.88 points or 0.01% to 23,713.97 and Straits Times trembled 0.47 points or 0.02% to 2,462.82. On the flip side, Shanghai Composite gained 0.79 points or 0.02% to 3,275.09 and KOSPI rose 2.13 points or 0.09% to 2,334.72.