Benchmarks trade flat with positive bias

Fluctuating between green and red terrain, key Indian benchmarks were trading flat in afternoon session, tracking weak cues from other Asian markets. Broader indices were trading mixed with the BSE Mid cap index rose 0.14%, while Small cap index was down by 0.07%. Traders were taking solace as 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. However, upside remain capped as Nobel Laureate Abhijit Banerjee states that the India is among the worst performing economies in the world and the government’s economic stimulus was inadequate to tackle the problem. But, he said that the country will see a revival in growth in the July-September quarter of the current fiscal.

On the global front, Asian markets were trading mostly lower as traders turned their attention to the first US presidential debate, while hopes for a second stimulus were given a boost after top Democrat Nancy Pelosi said she was hopeful a deal could be done. Back home, in scrip specific development, Lakshmi Vilas Bank slipped amid concerns over Clix Capital deal, while VA Tech Wabag jumped on allotment of 5 million shares to Rekha Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala on preferential basis.

The BSE Sensex is currently trading at 37994.41, up by 21.19 points or 0.06% after trading in a range of 37828.11 and 38167.19. There were 14 stocks advancing against 15 stocks declining, while 1 stock remains unchanged on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.14%, while Small cap index was down by 0.07%.

The top gaining sectoral indices on the BSE were FMCG up by 1.56%, Healthcare up by 1.12%, Consumer Durables up by 0.37%, Capital Goods up by 0.35%, Consumer Discretionary was up by 0.24%, while Metal down by 2.26%, Oil & Gas down by 1.94%, PSU down by 1.68%, Utilities down by 1.21% and Telecom was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.22%, Nestle up by 1.75%, Asian Paints up by 1.61%, Titan Company up by 1.53% and ITC was up by 1.42%. On the flip side, Tata Steel down by 2.55%, NTPC down by 1.88%, ICICI Bank down by 1.58%, Power Grid down by 1.38% and Axis Bank was down by 1.36% were the top losers.

Meanwhile, Chemicals & Fertilizers Minister D V Sadananda Gowda has said that it is a good time to invest in India's chemical sector that has huge growth potential. He noted that specialty chemicals is one of the areas where huge potential for growth lies. He also said that it is a good time to invest in the country when the government is focusing on self-sufficiency in domestic production.

The minister stated that the past couple of decades have seen a significant shift in the manufacturing of chemicals, particularly the specialty chemicals from EU and North America, to Asia. He also said that the Indian chemical industry has a huge role to play to make India a $5 trillion economy, with a potential to contribute $300 billion to the GDP by 2025 as compared to $160 billion at present.

Gowda further said India is looking forward to incentivising manufacturers, through Production Linked Incentives (PLIs) and development of infrastructure facilities, to set up the entire value chain of drug production in upcoming three bulk drug parks.

The CNX Nifty is currently trading at 11,230.05, up by 9.25 points or 0.08% after trading in a range of 11184.55 and 11280.75. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 3.58%, Cipla up by 2.55%, Hindustan Unilever up by 2.45%, UPL up by 2.03% and Nestle was up by 1.97%. On the flip side, BPCL down by 6.55%, JSW Steel down by 2.75%, Tata Steel down by 2.51%, Coal India down by 2.08% and Indian Oil Corporation was down by 1.80% were the top losers.

Asian markets were trading mostly in red; Straits Times trembled 3.28 points or 0.13% to 2,468.33, Nikkei 225 slipped 353.98 points or 1.5% to 23,185.12, Shanghai Composite declined 11.40 points or 0.35% to 3,212.96, Jakarta Composite was down by 33.31 points or 0.68% to 4,845.79.

On the other hand; Taiwan Weighted strengthened 47.88 points or 0.38% to 12,515.61 and Hang Seng was up by 188.02 points or 0.81% to 23,463.55.