Markets continue to trade in high spirit

Indian equity benchmarks continued to trade in high spirit in afternoon session, on account of broad based buying in blue chip counters amid positive Asian cues. Majority of the sectoral indices on BSE were into positive territory, stocks from PSU, Auto and Power counters were the prominent gainers. On the flip side, stocks from IT and TECK counters were the only losers on the index. Traders were encouraged with report that the Finance Ministry is likely to provide capital support from the Rs 20,000 crore fund approved by Parliament in recently concluded session to some Public Sector Banks (PSBs) in the third quarter (Q3) itself. Adding optimism, DPIIT has shared a list of 24 key sectors including food processing, toys, furniture, agro chemicals and textiles with respective ministries asking them to work on an action plan with a view to boost domestic manufacturing and make India a self-reliant country.

On the global front; Asian markets were trading mostly higher by signs of China's economic recovery was gaining momentum with pent-up demand, fiscal stimulus and surprisingly resilient exports boosting sentiment across the region. Back on street; on the sectoral front; shares of multiplex companies like PVR and Inox Leisure were trading firm as West Bengal Chief Minister Mamata Banerjee said that cinema halls and open-air theatres will be allowed to operate in the state from October 1 with a limited number of participants.

The BSE Sensex is currently trading at 37887.39, up by 498.73 points or 1.33% after trading in a range of 37544.05 and 37946.50. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 2.12%, while Small cap index was up by 2.12%.

The top gaining sectoral indices on the BSE were PSU up by 3.19%, Auto up by 3.07%, Power up by 3.07%, Metal up by 2.77% and Oil & Gas was up by 2.68%, while IT down by 0.24% and TECK was down by 0.03% were the only losing indices on BSE.

The top gainers on the Sensex were ONGC up by 6.17%, Indusind Bank up by 5.74%, Bajaj Finance up by 5.21%, Axis Bank up by 4.29% and NTPC was up by 3.48%. On the flip side, TCS down by 0.92%, Infosys down by 0.91% and Hindustan Unilever was down by 0.11% were the top losers.

Meanwhile; Reserve Bank of India (RBI) in its latest data has showed that bank credit rose by 5.26 percent to Rs 102.24 lakh crore, while deposits grew by 11.98 percent to Rs 142.48 lakh crore in the fortnight ended September 11. In the fortnight ended September 13, 2019, advances were at Rs 97.13 lakh crore and deposits stood at Rs 127.22 lakh crore.

In the previous fortnight ended September 11, 2020, bank credit had grown by 5.49 percent to Rs 102.11 lakh crore while deposits at 10.92 percent to Rs 141.76 lakh crore. On a year-on-year (y-o-y) basis, non-food bank credit grew at 6.7 percent in July as against a growth of 11.4 percent in the same month of the last year. Growth in loans to industry slowed to 0.8 percent in July as compared with 6.1 percent growth in July 2019. Advances to agriculture and allied activities registered a growth of 5.4 percent in the reporting month as compared with a growth of 6.8 percent last year in the same period.

Credit to the services sector continued to grow at a robust, albeit decelerated, rate of 10.1 percent in July 2020 as against 15.2 percent growth. Personal loans continued to perform well registering a growth of 11.2 percent as compared with 17 percent growth in July 2019. Within this sector, vehicle loans registered accelerated growth of 8.1 percent in July 2020 as compared with the growth of 4.9 percent in the corresponding month of the previous year.

The CNX Nifty is currently trading at 11206.30, up by 156.05 points or 1.41% after trading in a range of 11099.85 and 11212.60. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were ONGC up by 6.10%, Indusind Bank up by 5.53%, Bajaj Finance up by 5.13%, Tata Motors up by 4.99% and Adani Ports & SEZ up by 4.52%. On the flip side, Infosys down by 0.84%, TCS down by 0.76%, Wipro down by 0.27% and Hindustan Unilever was down by 0.22% were the top losers.

Asian markets were trading mostly higher; Straits Times advanced 13.83 points or 0.56% to 2,486.11, Nikkei 225 surged 307.00 points or 1.32% to 23,511.62, KOSPI rose 29.29 points or 1.29% to 2,308.08, Hang Seng increased 200.33 points or 0.86% to 23,435.75 and Taiwan Weighted was up by 229.85 points or 1.88% to 12,462.76.

On the other side; Jakarta Composite lost 18.07 points or 0.37% to 4,927.72 and Shanghai Composite was down by 2.07 points or 0.06% to 3,217.35.