Benchmarks trade higher in early deals ahead of macro-economic data

Indian equity benchmarks extended their rally for yet another session with optimistic start on Monday, taking lead from Asian peers. Markets are trading firm with notable gains of around 0.70% each in early deals, supported by buying in Bankex, PSU and FMCG stocks. Investors are eyeing the industrial production data for August and CPI inflation for September to be released later in the day. Some encouragement came in with the report that concerted efforts by the Reserve Bank to move to a non/less-cash economy by pushing digital payments have begun to pay rich dividends as the volume of such payments has jumped manifold in the past five years. Some support also came in with report that foreign portfolio investors (FPI) have invested Rs 1,086 crore on a net basis so far in October in Indian markets, tracking encouraging factors including improved GST collection, acceleration in economic activity and positive global cues. Traders took note of report that India will press for early and complete disengagement of troops by China from all the friction points in eastern Ladakh at the seventh round of high-level military talks between the two countries to be held today.

On the global front, most of the Asian markets were trading higher following the positive cues from Wall Street Friday amid continued optimism about a new US stimulus bill after President Donald Trump suggested he was once again in favor of a broad relief package. Investors also digested reports that the People's Bank of China has changed a rule that now makes it cheaper to short the yuan following the currency's recent sharp gains.

Back home, financials were in focus ahead of the Supreme Court hearing on loan moratorium issue. The Reserve Bank of India has filed an affidavit before the apex court saying that a loan moratorium exceeding six months could impact credit behavior of borrowers and increase the risks of delinquencies post resumption of scheduled payments. In scrip specific development, Wipro edged up slightly and Shalby rallied ahead of their quarterly earnings results. On the other hand, Vedanta touched lower circuit limit after its delisting failed on account of a large quantity of unconfirmed orders.

The BSE Sensex is currently trading at 40823.67, up by 314.18 points or 0.78% after trading in a range of 40696.69 and 40905.49. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.38%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were Bankex up by 1.27%, PSU up by 1.14%, FMCG up by 0.93%, IT up by 0.86%, Realty up by 0.82%, while Metal down by 1.42%, Auto down by 0.43%, Consumer Durables down by 0.38%, Basic Materials down by 0.24%, Oil & Gas down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 3.54%, SBI up by 3.15%, Kotak Mahindra Bank up by 2.35%, Power Grid up by 2.09% and Larsen & Toubro up by 1.82%. On the flip side, Titan Company down by 1.04%, ONGC down by 1.00%, HDFC Bank down by 0.74%, Bajaj Auto down by 0.74% and Hindustan Unilever down by 0.23% were the top losers.

Meanwhile, NITI Aayog CEO Amitabh Kant has said that India's massive digital footprint is one of its biggest strengths for Artificial Intelligence (AI) development, and established platforms like Aadhaar, UPI along with massive digital infrastructure create a unique opportunity for this futuristic technology to be leveraged to enhance transparency and improve governance. He noted that India optimally leveraging AI to solve its developmental challenges will not only lead to a societal transformation within, but will also benefit other nations in the world, who face similar issues.

Noting India's digital prowess - humongous amounts of data generated at cheapest possible cost, rising smartphone penetration and rapid adoption of digital modes of payment -- Kant said India's digitisation efforts through platforms such as Aadhaar, UPI, GST, public finance management system and digital infrastructure has created a unique opportunity for AI to be leveraged to increase transparency and improve governance.

He further said India's resolve to successfully leverage AI to solve various developmental challenges will not just transform the lives of 1.4 billion population here, but, in fact, also holds out a promise for billions of people across the world, who are moving from poverty to middle class. He added that India's 'National program on AI' will be dedicated towards the rightful use of the technology in solving societal problems.

The CNX Nifty is currently trading at 11994.95, up by 80.75 points or 0.68% after trading in a range of 11968.85 and 12022.05. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were ITC up by 3.60%, SBI up by 3.18%, Kotak Mahindra Bank up by 2.36%, Power Grid up by 2.09% and ICICI Bank up by 1.86%. On the flip side, Tata Motors down by 1.34%, Titan Company down by 1.05%, GAIL India down by 0.93%, JSW Steel down by 0.91% and Hero MotoCorp down by 0.88% were the top losers.

Asian markets were trading mostly in green; Straits Times rose 14.66 points or 0.58% to 2,547.62, Hang Seng jumped 489.58 points or 2.03% to 24,608.71, Taiwan Weighted gained 21.51 points or 0.17% to 12,908.70, KOSPI added 10.51points or 0.44% to 2,402.47, Jakarta Composite increased 38.98 points or 0.77% to 5,092.64, Shanghai Composite surged 74.18 points or 2.27% to 3,346.26, while Nikkei 225 was down by 93.76points or 0.40% to 23,525.93.