Local indices continue to trade higher in morning session

Indian equity benchmarks continued to trade higher in morning session, following gains in Asian peers. Most key sectoral indices witnessed buying with IT, TECK and Metal indices leading the pack. Sentiments remained positive with Commerce and Industry Minister Piyush Goyal’s statement that quality, technology and scale of production -- not government subsidies -- will help India take its annual exports to $1 trillion. He exhorted exporters and the industry as a whole to target $1 trillion worth of shipments. He said there is a need to identify areas where sensible policies can help take exports to $1 trillion. Some optimism also came as commerce ministry data showed that after contracting for six months in a row, the country's exports grew by 5.27 percent year-on-year to $27.4 billion in September, while imports slipped by 19.6 per cent to $30.31 billion. The trade deficit during the month under review narrowed to $2.91 billion as against $11.67 billion in the same period of 2019. Meanwhile, the Securities and Exchange Board of India (SEBI) has come out with a framework to monitor foreign holding in depository receipts (DRs). It said the broad operational guidelines have been put in place based on discussions with market participants.

On the global front, Asian markets were trading mostly in green, on hopes that President Donald Trump could be discharged from hospital later in the day, easing some of the political uncertainty that shook global bourses in the previous session. Meanwhile, the latest survey from Jibun Bank showed that the services sector in Japan continued to contract in September, albeit at a slower pace, with a seasonally adjusted services PMI score of 46.6. That's up from 45.0 in August, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction. The markets in China remain closed for the National Day holiday.

The BSE Sensex is currently trading at 39085.16, up by 388.11 points or 1.00% after trading in a range of 38923.19 and 39199.82. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.35%, while Small cap index was up by 0.52%.

The top gaining sectoral indices on the BSE were IT up by 2.98%, TECK up by 2.52%, Metal up by 1.72%, Bankex up by 1.66% and Realty up by 1.35%, while Oil & Gas down by 0.08%, Utilities down by 0.08% and Consumer Discretionary down by 0.01% were the few losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 4.44%, TCS up by 4.18%, Indusind Bank up by 3.28%, Infosys up by 2.88% and ICICI Bank up by 2.48%. On the flip side, Mahindra & Mahindra down by 1.70%, Asian Paints down by 1.41%, Ultratech Cement down by 1.16%, Bajaj Finserv down by 0.96% and ONGC down by 0.51% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said quality, technology and scale of production -- not government subsidies -- will help India take its annual exports to $1 trillion. He exhorted exporters and the industry as a whole to target $1 trillion worth of shipments. He said there is a need to identify areas where sensible policies can help take exports to $1 trillion.

Further, the minister released a study - Domestic Constraints for Exports in Select Sectors - published by the Export-Import Bank of India. According to the study, an immediate refund of GST could increase the overall GDP by 2 per cent, exports by 7 per cent, aggregate imports by 6 per cent, and overall employment by nearly 4 per cent. It identifies sector specific policy initiatives that could improve operational conditions and efficiency of exporters gems and jewellery, auto and auto-components, electronics, textiles and clothing, and pharmaceuticals sectors.

The study highlighted the need for direct government intervention to reduce costs at ports; attractive production oriented incentives; addressing procedural delays in approvals and refunds, as well as custom clearances by the Government; expediting GST refunds and duty drawback refunds to improve the manufacturing landscape, among others. It added the effects of immediate refund of GST on individual sectors are much larger, with exports from the six identified sectors expected to register double-digit growth.

The CNX Nifty is currently trading at 11527.85, up by 110.90 points or 0.97% after trading in a range of 11476.45 and 11554.00. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Wipro up by 4.44%, Tata Steel up by 4.40%, TCS up by 4.17%, Indusind Bank up by 3.53% and Infosys up by 2.79%. On the flip side, Mahindra & Mahindra down by 1.86%, GAIL India down by 1.36%, Asian Paints down by 1.29%, Ultratech Cement down by 1.10% and Bajaj Finserv down by 0.97% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 342.92 points or 1.46% to 23,801.97, Jakarta Composite soared 14.03 points or 0.28% to 4,940.76, Taiwan Weighted strengthened 23.39 points or 0.19% to 12,539.00, Straits Times advanced 13.11 points or 0.53% to 2,509.22, KOSPI rose 29.38 points or 1.26% to 2,357.27 and Nikkei 225 surged 276.34 points or 1.2% to 23,306.24.