Equity markets maintain gains in late afternoon session

Indian equity markets continued to trade with healthy gains in late afternoon session on account of buying in front line counters. The broader indices, BSE Mid cap index and Small cap index are also trading in green. Auto, Metal and Banking counters were on the priority list of the buyers. Traders remain energized, as Finance Ministry released Rs 6,000 crore as the second tranche to 16 States and three Union territories under its special window to states for meeting the GST compensation cess shortfall. Meanwhile, government has extended the Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs by one month till November 30, as the scheme has so far failed to meet the target of Rs 3 lakh crore. The scheme was valid till October-end.  Sector wise, telecom stocks remained in focus with a private report that telecom sector's revenue growth picked up to about 5 per cent in the September quarter against 1 per cent in the June quarter after relaxation of lockdown curbs.

On the global front, all Asian markets are trading higher despite jitters over the U.S. election. European markets were trading higher with investors putting coronavirus worries on the back burner for now as attention turned to the U.S. presidential election.

The BSE Sensex is currently trading at 40235.24, up by 477.66 points or 1.20% after trading in a range of 39952.79 and 40354.73. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.47%, while Small cap index was up by 0.56%.

The top gaining sectoral indices on the BSE were Bankex up by 2.92%, Metal up by 1.91%, Auto up by 1.63%, Consumer Durables up by 1.48% and Capital Goods was up by 1.22%, while Realty down by 2.37%, Telecom down by 0.38%, TECK down by 0.28%, IT down by 0.22% and Energy was down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 5.66%, Power Grid up by 3.93%, SBI up by 3.88%, HDFC up by 3.63% and Indusind Bank up by 3.09%. On the flip side, NTPC down by 3.25%, Nestle down by 2.03%, Infosys down by 1.07%, Hindustan Unilever down by 1.05% and Asian Paints down by 1.02% were the top losers.

Meanwhile, in order to comply with new guidelines with respect to existing current accounts, the Reserve Bank of India (RBI) has extended the deadline for banks. A Frequently Asked Questions (FAQ) document will be issued to address all the issues raised by banks regarding implementation of the guidelines for existing current account. The banks will have time till December 15 to ensure compliance in this regard.

In August, the RBI proposed changes to the current account operations in order to discipline banks to follow better practices, following recent learnings. However, the banks -- especially the private sector and foreign ones -- have voiced concerns.

The RBI said that barring one point on how to deal with the existing current accounts, all the other instructions of its August 6 circular remain unchanged. The circuclar pertained to the new guidelines.

The CNX Nifty is currently trading at 11809.05, up by 139.90 points or 1.20% after trading in a range of 11723.30 and 11836.20. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 5.73%, Hindalco up by 5.01%, Power Grid up by 3.96%, HDFC up by 3.86% and SBI up by 3.83%. On the flip side, UPL down by 6.40%, NTPC down by 3.25%, Nestle down by 1.98%, Tech Mahindra down by 1.18% and Hindustan Unilever down by 1.03% were the top losers.

All Asian markets are trading higher, Hang Seng increased 479.72 points or 1.96% to 24,939.73, Taiwan Weighted strengthened 144.70 points or 1.15% to 12,736.01, Straits Times advanced 51.09 points or 2.09% to 2,494.22, Shanghai Composite gained 45.95 points or 1.42% to 3,271.07, Jakarta Composite soared 44.32 points or 0.87% to 5,159.45 and KOSPI was up by 43.15 points or 1.88% to 2,343.3.

European markets were trading higher, UK’s FTSE 100 increased 81.89 points or 1.45% to 5,736.86, France’s CAC increased 68.91 points or 1.47% to 4,760.05 and Germany’s DAX was up by 170.72 points or 1.45% to 11,959.00.