Benchmarks trade higher in early deals after negative start

Indian equity benchmarks made slightly negative start on Friday, but soon gained momentum to enter into green zone. Markets are trading higher with notable gains in early deals on the back of buying in all the sector indices led by Realty, Capital Goods and Industrials stocks. Early cautiousness was came as the government data showed that contracting for the seventh consecutive month, the output of eight core infrastructure sectors dropped by 0.8 percent in September, mainly due to decline in production of crude oil, natural gas, refinery products and cement. The production of eight core sectors had contracted 5.1 percent in September 2019. However,  some respite came in with report that the Reserve Bank of India will conduct the second Open Market Operations (OMOs) purchase of State Developments Loans (SDLs), aggregating Rs 10,000 crore, on November 5, 2020.

On the global front, Asian markets were trading lower as worries about the outlook for tech companies weighed on the markets. Tech giant Apple's suppliers in the Asian region are notably lower. Investors also remained cautious due to the surging coronavirus cases in the US and Europe and as they looked ahead to the upcoming US presidential election.

Back home, gold related stocks were in focus as the World Gold Council (WGC) said gold demand of India is likely to recover in the fourth quarter (Q4) after falling 30% in the previous quarter as festivals are expected to strengthen retail jewellery purchases. In scrip specific development, InterGlobe Aviation came under pressure after reporting a net loss of Rs 1,194 crore for the second quarter ended September 30.

The BSE Sensex is currently trading at 39924.51, up by 174.66 points or 0.44% after trading in a range of 39636.03 and 39943.53. There were 23 stocks advancing against 7 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index surged 1.05%, while Small cap index was up by 0.69%.

The top gaining sectoral indices on the BSE were Realty up by 1.43%, Capital Goods up by 1.26%, Industrials up by 1.11%, Power up by 1.04%, Oil & Gas up by 0.97%, while there was no loser on BSE sectoral front.

The top gainers on the Sensex were Indusind Bank up by 1.80%, HCL Technologies up by 1.68%, Nestle up by 1.39%, NTPC up by 1.21% and TCS up by 1.18%. On the flip side, Power Grid down by 0.79%, Maruti Suzuki down by 0.45%, Kotak Mahindra Bank down by 0.39%, Hindustan Unilever down by 0.31% and Bajaj Finance down by 0.28% were the top losers.

Meanwhile, Union Minister Nitin Gadkari has said that micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy and can help in boosting exports. He said ‘we are giving highest priority for how we can reduce our import and increase our exports’. He noted that the global economy is an open platform where the quality, cost and scale of marketing of products are very important factors.

Gadkari has stated that the government wants to create more employment in the backward and tribal areas. He also said ‘we want to recognise, respect, support and facilitate women entrepreneurs and at the same time we want to incentivise them’. He noted that through the Khadi Gram Udyog, the government is now concentrating on village industries and areas which are socially, economically and educationally backward.

The minister said ‘we want to focus on these areas where we need more concentration for gaining and creating employment potential and growth. And that is exactly the way of eradication of poverty, which is our mission. They need guidance, innovation and technology and that is where we need to help them.’

The CNX Nifty is currently trading at 11735.55, up by 64.75 points or 0.55% after trading in a range of 11637.20 and 11743.90. There were 40 stocks advancing against 10 stocks declining on the index.

The top gainers on Nifty were IOC up by 2.61%, Coal India up by 2.39%, BPCL up by 2.30%, Adani Ports & SEZ up by 2.10% and NTPC up by 2.08%. On the flip side, Power Grid down by 0.99%, Eicher Motors down by 0.97%, Hindustan Unilever down by 0.76%, Maruti Suzuki down by 0.76% and Bajaj Finance down by 0.75% were the top losers.

Asian markets were trading in red; Nikkei 225 lost 129.61 points or 0.56% to 23,202.33, Straits Times fell 10.23 points or 0.42% to 2,440.45, Hang Seng slipped 6.38 points or 0.03% to 24,580.22, Taiwan Weighted plunged 38.18 points or 0.30% to 12,624.73, KOSPI declined 27.55 points or 1.18% to 2,299.12 and Shanghai Composite was down by 3.28 points or 0.10% to 3,269.45.