Firm trade persists on Dalal Street

Key barometer gauges continued their firm trade in afternoon session, amid optimism the worst of the fallout from the coronavirus pandemic is over and new cases in India are unlikely to rise to the level last seen in mid-September. Additional support came with Ratings agency ICRA’s report that India's economic recovery has ‘broadened and strengthened’ in September 2020 from the pandemic-induced lows seen in April 2020. It said that as many as nine of the tracked 15 non-financial high frequency indicators recorded growth in September 2020, while five posted a narrower year-on-year (YoY) contraction in that month. Positive cues from global markets also supported the sentiment. Meanwhile, Markets regulator -- Securities and Exchange Board of India (SEBI) has amended norms pertaining to alternative investment funds (AIFs), including defining relevant professional qualifications. 

On the global front, Asian markets were trading mostly in green, as investors welcomed a batch of solid earnings reports from U.S. companies and held out some hope of a deal on U.S. stimulus talks. Back home, on the sectoral front, automotive industry’s stocks were buzzing as the Automotive Component Manufacturers Association of India (ACMA) said the uptick in the passenger vehicles segment, coupled with car parc of second-hand vehicles, on account of increased use of personal cars is expected to lead to a rise in aftermarket demand. It also said the automotive industry is shifting gears as it witnesses an uptick in vehicle consumption in the second quarter of the current financial year.

The BSE Sensex is currently trading at 40919.32, up by 374.95 points or 0.92% after trading in a range of 40757.27 and 40976.02. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.81%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were Metal up by 2.40%, Bankex up by 1.81%, Realty up by 1.45%, PSU up by 1.10% and Basic Materials up by 1.08%, while FMCG down by 0.20% was the lone losing index on BSE.

The top gainers on the Sensex were Indusind Bank up by 3.22%, Tata Steel up by 2.98%, Axis Bank up by 2.43%, ICICI Bank up by 2.30% and HDFC up by 2.11%. On the flip side, Hindustan Unilever down by 0.60%, Nestle down by 0.56%, TCS down by 0.55% and Bajaj Auto down by 0.27% were the top losers.

Meanwhile, Ratings agency ICRA has said India's economic recovery has ‘broadened and strengthened’ in September 2020 from the pandemic-induced lows seen in April 2020. It said that as many as nine of the tracked 15 non-financial high frequency indicators recorded growth in September 2020, while five posted a narrower year-on-year (YoY) contraction in that month. However, it cautioned that the sustainability of the upturn is unlikely to be universal, and that while fatigue may drive festive season sales, the momentum may subsequently subside.

ICRA said the recovery in GST e-way bills, electricity, petrol and diesel in September 2020 provides a meaningful signal of a broader economic revival. The improvement in some of the other indicators, such as auto output, reflects a combination of pent-up demand, healthy rural sentiment, and inventory build-up, ahead of the upcoming festive season.  The healthy 9.6 per cent increase in the generation of GST e-way bills on a YoY basis in September 2020, in contrast to the contraction of 3.5 per cent in August 2020, signals a wider revival in economic activity.

Moreover, the agency cautioned about the sustainability of the trend especially regarding the improvement in non-oil merchandise exports, in the light of a fresh wave of Covid-19 infections in many trading partners. It added ‘overall, we await signals of the durability of the nascent upturn that emerged in September 2020.’
The CNX Nifty is currently trading at 11999.55, up by 102.75 points or 0.86% after trading in a range of 11951.80 and 12018.65. There were 40 stocks advancing against 9 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Indusind Bank up by 3.22%, Tata Steel up by 2.97%, Hindalco up by 2.79%, ICICI Bank up by 2.52% and Axis Bank up by 2.47%. On the flip side, Britannia Industries down by 1.96%, Hero MotoCorp down by 1.21%, Hindustan Unilever down by 0.74%, TCS down by 0.61% and SBI Life Insurance down by 0.52% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 178.39 points or 0.73% to 24,747.93, Nikkei 225 surged 94.69 points or 0.4% to 23,661.73, Taiwan Weighted strengthened 38.86 points or 0.3% to 12,901.23, Straits Times advanced 9.94 points or 0.39% to 2,538.58 and KOSPI rose 8.93 points or 0.38% to 2,367.34.

On the flip side, Jakarta Composite lost 2.99 points or 0.06% to 5,096.85 and Shanghai Composite declined 11.75 points or 0.35% to 3,316.35.