Sensex, Nifty trade in red terrain during late morning deals

Indian equity benchmarks remained volatile during late morning session, with both Sensex and Nifty trading in red terrain. Downside remained capped on the back of positive cues from other Asian markets. Traders were seen taking a note of reports that the Reserve Bank deferred the implementation of the capital conservation buffer (CCB) requiring banks to set aside additional reserves of 0.625 per cent by a further six months due to the COVID-19 pandemic. The implementation of the regulations was to happen by September 30, and the same has been now deferred to April 1, 2021.

On the global front, Asian markets were trading mostly in green, after China's manufacturing sector logged a strong momentum in September driven by robust domestic and foreign demand after the easing of lockdown measures. The survey data from IHS Markit showed that the Caixin manufacturing Purchasing Managers' Index edged down to 53.0 in September from 53.1 in August. A score above 50 indicates expansion in the sector. Operating conditions strengthened in each of the past five months.

The BSE Sensex is currently trading at 37967.95, down by 5.27 points or 0.01% after trading in a range of 37828.11 and 38167.19. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.02%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were FMCG up by 1.17%, Healthcare up by 0.94%, Consumer Durables up by 0.20%, Consumer Discretionary up by 0.17% and IT up by 0.02%, while Metal down by 2.17%, Oil & Gas down by 1.77%, PSU down by 1.69%, Telecom down by 1.14% and Utilities down by 1.14% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.78%, Nestle up by 1.55%, Titan Co up by 1.38%, Asian Paints up by 1.19% and ITC up by 0.83%. On the flip side, Tata Steel down by 2.18%, NTPC down by 1.94%, ICICI Bank down by 1.67%, Power Grid down by 1.59% and Axis Bank down by 1.36% were the top losers.

Meanwhile, Nobel Laureate Abhijit Banerjee has said India is among the worst performing economies in the world and the government's economic stimulus was inadequate to tackle the problem. He said the stimulus measures did not increase consumption spending of lower income people as the government was not willing to put money in the hands of the low income population.

He said the country's economic growth was slowing down even before the Covid-19 pandemic hit. However, he said that the country will see a revival in growth in the July-September quarter of the current fiscal.

Talking about inflation, he said India's growth strategy was closed economy with the government creating lots of demand, which resulted in high growth and inflation. He opined India had 20 years of high inflation and high growth. The country benefited a lot from stable high inflation in the last 20 years.

The CNX Nifty is currently trading at 11215.65, down by 6.75 points or 0.06% after trading in a range of 11184.55 and 11280.75. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 3.50%, Cipla up by 2.56%, UPL up by 1.78%, Hindustan Unilever up by 1.74% and Nestle up by 1.72%. On the flip side, BPCL down by 6.82%, JSW Steel down by 2.48%, Coal India down by 2.42%, Tata Steel down by 2.24% and Indian Oil Corporation down by 2.14% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 273.94 points or 1.18% to 23,549.47, Taiwan Weighted strengthened 49.16 points or 0.39% to 12,516.89, KOSPI rose 19.81 points or 0.86% to 2,327.89, Shanghai Composite gained 14.50 points or 0.45% to 3,238.86 and Straits Times advanced 5.40 points or 0.22% to 2,477.01. On the other side, Jakarta Composite lost 28.53 points or 0.58% to 4,850.57 and Nikkei 225 slipped 258.68 points or 1.1% to 23,280.42.