Local equity markets trade with healthy gains

Indian equity markets continued to trade with healthy gains in late afternoon session. Buoyant Mid-caps and Small-caps also elevated over 2% gains on their respective front line stocks. Local investors cheered after 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. Traders took note of report that the Department for Promotion of Industry and Internal Trade (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. Sector wise, sugar stocks remained in focus, as Government has extended sugar export deadline by 3 months till December.

On the global front, Asian markets are trading mostly in green tracking a healthy lead from Wall Street as bargain-buyers moved in following a recent sell-off, though advances were limited by worries about fresh virus spikes and the reimposition of economically damaging containment measures. European markets were trading higher helped by upbeat industrial profits data from China and a jump in German lender Commerzbank after it appointed a new chief executive officer.

The BSE Sensex is currently trading at 37951.94, up by 563.28 points or 1.51% after trading in a range of 37544.05 and 38005.87. There were 27 stocks advancing against 3 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 2.37%, while Small cap index was up by 2.37%.

The top gaining sectoral indices on the BSE were Power up by 3.17%, Bankex up by 3.11%, Metal up by 3.03%, PSU up by 2.98% and Auto was up by 2.73%, while IT down by 0.21% were the only losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 8.53%, Bajaj Finance up by 5.97%, ONGC up by 5.30%, Axis Bank up by 5.11% and Sun Pharma up by 3.99%. On the flip side, TCS down by 0.96%, Infosys down by 0.68% and Hindustan Unilever down by 0.38% were the top losers.

Meanwhile, with an aim to boost domestic manufacturing and make India a self-reliant country, the Department for Promotion of Industry and Internal Trade (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.

The other sectors include organic farming, iron, aluminium and copper, electronics, industrial machinery, furniture, leather and shoes, and auto parts. Each ministry has been sent those sectors to identify their response.

DPIIT is working actively on promoting domestic manufacturing of toys and furniture. Several meetings were held with stakeholders to identify these sectors which have the potential to become global winners and make India a strong manufacturing hub.

The CNX Nifty is currently trading at 11225.80, up by 175.55 points or 1.59% after trading in a range of 11099.85 and 11234.05. There were 46 stocks advancing against 4 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 8.35%, Bajaj Finance up by 6.10%, ONGC up by 5.44%, Axis Bank up by 5.24% and Tata Motors up by 4.60%. On the flip side, Wipro down by 0.99%, TCS down by 0.92%, Infosys down by 0.74% and Hindustan Unilever down by 0.48% were the top losers.

Asian markets are trading mostly in green, Nikkei 225 surged 307.00 points or 1.32% to 23,511.62, Hang Seng increased 240.63 points or 1.04% to 23,476.05, Taiwan Weighted strengthened 229.85 points or 1.88% to 12,462.76, KOSPI rose 29.29 points or 1.29% to 2,308.08 and Straits Times was up by 11.66 points or 0.47% to 2,483.94. On the flip side, Shanghai Composite declined 1.89 points or 0.06% to 3,217.53 and Jakarta Composite was down by 39.24 points or 0.79% to 4,906.55.

European markets were trading higher; UK’s FTSE 100 increased 75.70 points or 1.3% to 5,918.37, France’s CAC increased 84.70 points or 1.79% to 4,814.36 and Germany’s DAX was up by 304.36 points or 2.44% to 12,773.56.