Benchmarks trim some losses in late afternoon session

The Indian equity benchmarks trimmed some of their losses in late afternoon session, but continued to trade below the neutral lines. The markets remained under pressure, as ministry of Commerce and Industry in its latest data has showed that the growth of eight core infrastructure industries contracted by 0.8 percent in September 2020 as compared to same period of last year, mainly due to decline in production of crude oil, natural gas, refinery products and cement. However, downside remained capped with the private report that India is working to offer production-linked incentives to more sectors to boost domestic manufacturing. Meanwhile, the Cabinet will soon consider approving such incentives for more sectors. Sector wise, Oil and Gas sector remained in focus, as crude Oil production having 8.98 percent weight fell by 6.0 percent in September, 2020 over September, 2019 and its cumulative index dropped by 6.1 percent during April to September, 2020-21 over the corresponding period of previous year. The Natural Gas production having 6.88 percent weight declined by 10.6 percent in September, 2020 over September, 2019.

On the global front, all Asian markets were trading lower as jitters over upcoming US presidential elections and fears that the global economic downturn will persist enveloped markets, though the index was still set to end the month higher. European markets were trading lower.

The BSE Sensex is currently trading at 39519.53, down by 230.32 points or 0.58% after trading in a range of 39241.87 and 39988.25. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index gained 0.48%, while Small cap index was down by 0.14%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.49%, Metal up by 1.31%, Realty up by 1.29%, PSU up by 0.97% and Power was up by 0.83%, while Telecom down by 1.93%, Auto down by 1.14%, Bankex down by 0.94%, FMCG down by 0.76% and Consumer Discretionary was down by 0.60% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 2.01%, Nestle up by 1.77%, Sun Pharma up by 1.13%, Tech Mahindra up by 0.86% and NTPC up by 0.64%. On the flip side, Bharti Airtel down by 2.86%, Bajaj Finance down by 2.33%, Hindustan Unilever down by 2.30%, Maruti Suzuki down by 2.12% and Kotak Mahindra Bank down by 1.86% were the top losers.

Meanwhile, in order to increase efficiency, Reserve Bank of India (RBI) Governor Shaktikanta Das has underlined the need for strengthening the preventive vigilance framework, stressing that it was also critical for ensuring good governance.

The governor also highlighted the critical role of vigilance in ensuring good governance standards in the financial sector and the need to strengthen preventive vigilance framework to increase efficiency.

The RBI is observing the Vigilance Awareness Week with the theme 'Vigilant India, Prosperous India' from October 27 to November 2. Various events are being organised at central office and regional office levels.

The CNX Nifty is currently trading at 11625.75, down by 45.05 points or 0.39% after trading in a range of 11535.45 and 11748.95. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 5.03%, BPCL up by 3.91%, Coal India up by 3.02%, Indian Oil up by 2.49% and Tata Steel up by 2.38%. On the flip side, Hero MotoCorp down by 3.36%, Bharti Airtel down by 2.88%, Eicher Motors down by 2.50%, Bajaj Finance down by 2.31% and Hindustan Unilever down by 2.21% were the top losers.

All Asian markets are trading lower, Straits Times trembled 20.39 points or 0.83% to 2,430.29, Shanghai Composite declined 48.20 points or 1.47% to 3,224.53, KOSPI fell 59.52 points or 2.56% to 2,267.15, Taiwan Weighted dropped 116.57 points or 0.92% to 12,546.34, Nikkei 225 slipped 354.81 points or 1.52% to 22,977.13 and Hang Seng was up by 479.18 points or 1.95% to 24,107.42.

European markets were trading lower; UK’s FTSE 100 decreased 10.34 points or 0.19% to 5,571.41, France’s CAC decreased 8.49 points or 0.19% to 4,561.18 and Germany’s DAX was down by 65.63 points or 0.57% to 11,532.44.