Local indices remain in red terrain in morning deals

Indian equity benchmarks erased some of their initial losses but continued to trade in red terrain in morning deals, due to the sour investors' sentiment in the global markets. Market participants were also cautious ahead of the expiry of October derivatives contracts. Traders failed to get respite with domestic credit rating agency Crisil’s report that financial conditions in India have staged a speedy recovery from the harrowing abyss they had been sent flailing into by the coronavirus disease (covid-19) pandemic in April, 2020. It said the Reserve Bank of India’s (RBI) measures have helped mitigate the large and broad-based economic damage caused by the pandemic. On the sectoral front, sugar stocks remained in focus as the government said there is a need to address ‘myths and misgivings’ about sugar consumption in India, as the per capita consumption of the sweetener has remained stagnant for the last three years at 19 kilogram.

On the global front, Asian markets were trading mostly in red, amid continued concerns about a recent spike in coronavirus cases in the U.S. and Europe and on lingering uncertainty about new U.S. stimulus. Investors also turned cautious ahead of the Bank of Japan's monetary policy decision due later today. The central bank is widely expected to keep its benchmark lending rate unchanged at -0.1 percent, although it may introduce other forms of stimulus.

The BSE Sensex is currently trading at 39820.28, down by 102.18 points or 0.26% after trading in a range of 39524.25 and 39886.16. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose 0.08%, while Small cap index was down by 0.49%.

The top gaining sectoral indices on the BSE were Power up by 0.45%, Basic Materials up by 0.26%, Energy up by 0.17%, Realty up by 0.13% and Telecom up by 0.06%, while Consumer Durables down by 1.48%, Capital Goods down by 1.43%, Industrials down by 0.89%, FMCG down by 0.79% and Auto down by 0.68% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 1.54%, Ultratech Cement up by 1.13%, TCS up by 0.63%, ICICI Bank up by 0.61% and HCL Technologies up by 0.48%. On the flip side, Larsen & Toubro down by 4.06%, Titan Company down by 2.70%, ONGC down by 2.41%, Hindustan Unilever down by 1.54% and Bajaj Auto down by 1.37% were the top losers.

Meanwhile, the Directorate General of Civil Aviation (DGCA) has said the suspension of scheduled international passenger flights has been extended till November 30 amid the coronavirus pandemic. It also mentioned that the suspension does not affect the operation of international all-cargo operations and flights specifically approved by it. However, the international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis.

The scheduled international passenger services have been suspended in India since March 23 due to the coronavirus pandemic. But special international flights have been operating under the Vande Bharat Mission since May and under the bilateral 'air bubble' arrangements with selected countries since July.

India has formed air bubble pacts with around 18 countries, including the US, the UK, the UAE, Kenya, Bhutan and France. Under an air bubble pact between two countries, special international flights can be operated by their airlines between their territories. Besides, the scheduled domestic passenger flights resumed in India on May 25 after a gap of two months amid the pandemic situation.

The CNX Nifty is currently trading at 11683.15, down by 46.45 points or 0.40% after trading in a range of 11609.20 and 11709.60. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 1.52%, Dr. Reddys Lab up by 1.24%, Ultratech Cement up by 1.19%, Cipla up by 0.76% and TCS up by 0.71%. On the flip side, Larsen & Toubro down by 3.80%, ONGC down by 2.64%, Titan Company down by 2.59%, Indian Oil Corporation down by 2.24% and Tata Motors down by 2.04% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 75.87 points or 0.32% to 23,342.64, Taiwan Weighted dropped 129.30 points or 1.01% to 12,664.45, Hang Seng decreased 229.96 points or 0.93% to 24,478.84, Straits Times trembled 19.97 points or 0.8% to 2,463.51 and KOSPI fell 29.77 points or 1.27% to 2,315.49.

On the flip side, Shanghai Composite gained 2.48 points or 0.08% to 3,271.72.