Sensex, Nifty hold gains in late morning deals

Firm trade continued over the Dalal Street in late morning deals, with both Sensex and Nifty holding their gains to trade in green terrain. Key indices maintain gaining rally on the back of positive cues from the other Asian markets. Traders were seen taking a note of reports that the Reserve Bank issued final guidelines, including the framework, to set up a self-regulatory organisation for payment system operators as part of its payment and settlement systems vision. The framework will enable the central bank to recognise a self-regulatory organisation (SRO) for payment system operators (PSOs). The plan was announced in February 2020 monetary policy.

On the global front, Asian markets were trading mostly in green, even after the manufacturing sector in Japan continued to contract in October, albeit at a slower pace, the latest survey from Jibun Bank revealed on Friday with a manufacturing PMI score of 48.0. That's up 47.7 in September, although it remain beneath the boom-or-bust line of 50 that separates expansion from contraction. Production and new orders fell further but at weaker rates. The decline in backlogs also moderated while employment fell marginally. Business expectations about the year ahead outlook remained positive.

The BSE Sensex is currently trading at 40664.02, up by 105.53 points or 0.26% after trading in a range of 40631.87 and 40811.12. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.55%, while Small cap index was up by 0.63%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.05%, Auto up by 1.64%, Consumer Discretionary up by 1.23%, Energy up by 0.70% and Power up by 0.64%, while Realty down by 0.35%, Bankex down by 0.21%, FMCG down by 0.19% and Telecom down by 0.06% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 2.76%, Power Grid up by 2.58%, Tata Steel up by 1.54%, Mahindra & Mahindra up by 1.33% and Titan Company up by 1.06%. On the flip side, Axis Bank down by 0.93%, Hindustan Unilever down by 0.92%, Ultratech Cement down by 0.76%, Kotak Mahindra Bank down by 0.70% and HCL Tech down by 0.54% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its latest data has showed that bank credit grew by 5.66 per cent to Rs 103.44 lakh crore, while deposits increased by 10.55 per cent to Rs 143.02 lakh crore in the fortnight ended October 9. In the fortnight ended October 11, 2019, bank credit had stood at Rs 97.89 lakh crore and deposits at Rs 129.38 lakh crore.

In the previous fortnight ended September 25, 2020, bank credit had grown by 5.15 per cent to Rs 102.72 lakh crore and deposits rose by 10.51 per cent to Rs 142.64 lakh crore. Central bank data showed on a year-on-year basis, non-food bank credit growth decelerated to 6 per cent in August as against 9.8 per cent in the same month last year.

Growth in loans to agriculture and allied activities rose 4.9 per cent in the reporting month, as compared to a growth of 6.8 per cent in August last year. Credit growth to the services sector decelerated to 8.6 per cent from 13.3 per cent last year. Growth in advances to industry decelerated to 0.5 per cent in August 2020 from 3.9 per cent earlier. Personal loans continued to perform well, registering a growth of 10.6 per cent in August 2020 as against 15.6 per cent in August 2019.

The CNX Nifty is currently trading at 11931.00, up by 34.55 points or 0.29% after trading in a range of 11920.40 and 11974.55. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.77%, Power Grid up by 2.48%, Adani Ports & SEZ up by 2.23%, Tata Motors up by 2.21% and Coal India up by 1.73%. On the flip side, Shree Cement down by 1.54%, GAIL India down by 1.41%, Ultratech Cement down by 0.97%, Hindustan Unilever down by 0.89% and Axis Bank down by 0.88% were the top losers.

Asian markets were trading mostly in green; Nikkei 225 surged 85.02 points or 0.36% to 23,559.29, KOSPI rose 5.44 points or 0.23% to 2,360.49, Shanghai Composite gained 4.37 points or 0.13% to 3,316.87, Jakarta Composite soared 10.35 points or 0.2% to 5,102.17, Straits Times advanced 4.22 points or 0.17% to 2,532.63 and Hang Seng increased 162.24 points or 0.65% to 24,948.37. On the flip side, Taiwan Weighted dropped 13.00 points or 0.1% to 12,904.03.